From the ArcaMax Publishing, Automotive Newsletter:
http://www.arcamax.com/news/automotive/s-571873-382918
Insurance companies could be missing out on a great opportunity. A
win-win deal. A way they could make money, reduce their liability
exposure - and make life easier on older drivers in the process. That
opportunity? Limited-use car insurance coverage for seniors.
It's true that drivers over the age of 65 are - as a group - more
likely to be involved in an at-fault accident than any other group of
drivers except teens. But individual risk within any group is highly
variable - and unlike teenagers, seniors have the wisdom of their
years going for them.
Many older drivers - aware of declining visual acuity - voluntary
restrict their driving to daylight hours. Some only drive locally,
sticking to roads they know well - and avoid long trips, unfamiliar
roads and highways. They may only drive a couple thousand miles every
year - vs. 12,000-15,000 (on average) for most of us.
A senior driver who drives much less often, not nearly as far or as
fast - and only under ideal conditions on roads he knows intimately -
has significantly reduced his individual risk profile. Shouldn't such
a driver be able to get a break on his car insurance?
Antique/classic car coverage already works on this principle - and
everyone seems to be happy with the arrangement. Most such polices
require the owner to agree that the vehicle will not be used regularly
as a "daily driver" (specific annual mileage restrictions - verified
by annual odometer checks - are common) in return for lower premiums
than would be the case if the car were used every day.
It's understood that because the car sends most of its life in a
garage - and is taken out only occasionally - and even then only under
ideal conditions - the odds of it being involved in an accident are
not just lower but significantly lower than they would otherwise be.
It seems perfectly logical to offer similar coverage to senior drivers
who likewise restrict their driving - and thus, their risk.
It would reward the responsible, lower both premiums and liability
costs - and perhaps more importantly, permit individual seniors to be
treated more like individuals rather than members of a catch-all group
- "older drivers" - with the responsible ones dragged down into the
pit of stratospheric insurance costs because of the irresponsibility
of a few.
With modern GPS technology, it would be simple to confirm/keep track
of a senior driver's habits. If he violated the terms of the limited
use policy by going out at night, or driving beyond a certain radius
of home, etc. - that would be easy to discover. Annual mileage checks
are even simpler.
There's really no reason not to offer seniors a way to avoid
ridiculously high insurance costs that assume (a) that they drive as
often - and as far - as everyone else; and (b) that because some older
drivers are more accident prone, all drivers over a certain age are
more accident prone - and ought to be surcharged accordingly. Unless,
of course, the whole point is precisely that - to milk 'em for all
they're worth. Just because you can.
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www.ericpetersautos.com or EPeters952@aol.com for
comments.