Massachusetts Legislators Want to Take Insurance Discount from Senior Drivers

Posted in Auto Insurance

October 28th, 2009

Despite a recent report that senior drivers over 65 are safer behind the wheel than drivers from all other age brackets, Massachusetts legislators are looking to trim down their 25 percent auto insurance. The discount has been a part of the state’s law for several years; however, due to upcoming privilege changes the state will be making regarding senior motorists.

The AIB Report

The Automobile Insurers Bureau of Massachusetts (AIB) compiled data for the report and showed that overall, senior drivers are safer. However, according to the report, drivers ages 75 and over get into more accidents and file more claims than all drivers with the exception of youths.

Discount Dispute

Because the report shows that many senior drivers are not safer than other drivers behind the wheel, legislators believe that senior drivers may not deserve an automatic 25 percent discount regardless of driving record. For one, the discount is simply too large and doesn’t take into account accidents that may raise insurance rates for everyone. And two, the discounts as resulted in huge income losses for many companies.

The Effects on Other Massachusetts Drivers

Because companies have been offering 25 percent discounts to senior drivers in the state, they have been forced to raise premiums for other drivers. So by reducing the senior discounts, other drivers can benefit along with insurance companies.

While nothing has been set in stone yet, it looks like state legislators will be pushing for discount reductions sooner than later. If this is the case, seniors may need to look for other ways to reduce insurance coverage.

Do you think Massachusetts seniors should have their auto insurance discounts trimmed down?