Auto insurance is mandatory for drivers of all ages, but the cost of that insurance is not the same for everyone. Here, the Youngs Georgetown team explains what auto insurance discounts retirees many be entitled to.
Actuarial Data Counts
In Ontario, actuarial data is one of the key factors in calculating auto insurance premiums. This means that age is a relevant factor when it comes to your rates, and can actually make a big difference.
In Ontario, mature drivers (those between the ages of 55 and 70) experience some of the lowest insurance rates of their lifetimes, so long as they have maintained a clean driving record over the years, and have a claim-free history. That said, after 70, statistics show that incidents starts to climb, and as a result, rates do as well.
Statistically, motorists in their early senior years present a relatively low risk for incidents, and many insurers actively seek out clients in this age group. They do this by offering discounts.
If you qualify for a mature driver discount, don’t assume your insurance company will automatically apply it. Be sure to get in touch and ask about it, and take the opportunity to ask about any other discounts you may be eligible for.
Drive Less, Pay Less
Changes in the way you use your car on a daily basis can also affect your rates. For instance, once you retire, your daily commute to work will be cut out of the equation. For most people, this means less daily driving, and therefore a smaller risk of incident. You may find that this also brings your premium down.