HELPFUL HINTS FOR SENIORS BUYING CAR INSURANCE : MATURE DRIVING PROGRAM

Effective July 1, l987, Assembly Bill 2610 entitles California licensed drivers age 55 and over to premium discounts on liability, medical payments and collision coverage if they take a state approved mature driver improvement course every three years.

The statewide incentive program which effects all automobile insurance companies, is designed to improve driving skills and promote road safety for older adults. Discounts will depend on a person’s driving record and insurance carrier. However, most companies have announced 5% to 10% premium reductions for course graduates.

The 8-hour mature driver improvement course will be available at private driving schools, public and private colleges and offered by non-profit organizations at community-based locations. Cost may vary from $8 to $20 depending on provider. The Department of Motor Vehicles will issue certificates to persons completing the course, which must be submitted to insurance carriers for discount benefits.

State approved mature driving courses meeting National Safety Council standards will offer 400-minutes of mandatory classroom instruction in the following areas:

Health and Driving Performance--(90 minutes) visual, hearing, physical limitations and physiologic changes associated with aging; DMV requirements for license issuance and refusal, reexamination of licensed drivers.

Effects of medication and alcohol on driving performance--(45 minutes) Rules of the Road and defensive driving countermeasures--(145 minutes) update on rules, driving demands in specific situations and basic defensive driving tactics.

Planning a trip and handling hazardous conditions--(90 mminutes) planning travel time and routes, being prepared to handle hazardous conditions.

Curriculums must also include 30-minutes of instruction time in one of the following elective areas: Recreational Vehicle Safety; Deciding When To Stop Driving; Local Weather and Traffic Conditions Affecting Driving Performance.

Number of Licensed Senior Drivers Based on a report issued by the State of California, Department of Motor Vehicles on December 31, l986, Orange County has 1,626,100 licensed drivers between the ages of 16 to 99 years old. Older adults, 55 years old and over, represent 323,069 or 19.87% of the county’s licensed motorists. Officials estimate that 20,000 drivers per year will be eligible for mature driving insurance rates when reaching their 55th birthday.

According to DMV statistics complied June 1987, adults 50 to 90 years old constitute 26.1% or 424,350 of all licensed drivers in Orange County.

Licensed Age Sex Drivers* 50 to 54 Male 52,579 Female 55 to 59 Male 48,365 Female 60 to 64 Male 41,491 Female 65 to 69 Male 31,491 Female 70 to 74 Male 19,445 Female 75 to 79 Male 11,791 Female 80 to 84 Male 6,075 Female 85 to 89 Male 2,196 Female 90 to 99 Male 417 Female 307

Common Insurance Terms Agent--A person authorized, by and on behalf of an insurer, to sell insurance. Binder--A temporay or preliminary agreement which provides coverage until a policy can be written or delivered. Broker--A person who, for payment of a fee by you, looks for insurance on your behalf. Insured--The policyholder, person(s), protected in case of an accident or loss. Insurer--The insurance company. Policy-- Written contract of insurance. Quote--An estimate of the cost of insurance, based on information supplied to the insurance company by the applicant. Premium--The amount of money which the policyholder agrees to pay for the policy. Surcharge--An extra charge applied by the insurer, usually for accidents or moving convictions. Deductible--The amount of the loss which the insured has to pay under the collision and comprehensive coverages. Liability Insurance--Bodily injury liability insurance covers you for injuries to someone else. Property Damage--Insurance coverage for damage to someone else’s property, when your car is in an accident in which you are found legally liable. Split--Limits Policy with Bodily Injury of $15,000/$30,000 and Propery Damage $5,000--The maximuminsurance company will pay for one person’s injuries and expenses is $15,000 under bodily injury coverage. If two or more people are involved, the maximum paid out for everyone will be $30,000. The maximum paid out for damage to other people’s property is $5,000. Combined Single Limit Policy of $35,000--The maximum damage paid for one person’s injuries and damaged vehicle is $35,000. The maximum paid for all people involved is $35,000. Medical Payment Insurance--The medical costs resulting from an auto accident for you, your family and others in your car will be paid up to the specified limit you choose, regardless who was at fault. Uninsured Motorist Bodily Injury (UMBI) Coverage--The insurance company pays for injuries to you or to persons in your car in accidents caused by uninsured or unidentified drivers. Uninsured Motorist Propery Damage (UMPD) Coverage--The insurance company pays for damage to your automobile caused by an uninsured motorist, however either the owner/operator or the uninsured vehicle must be identified. UMPD will pay up to $3,500, not to exceed the value of the vehicle. Underinsured Motorist Coverage--The insurance company pays for bodily injury or wrongful death caused by an underinsured motor vehicle, (vehicle insured but at an amount less than UMBI limits.) Physical Damage Insurance--Collision coverage pays for damage to your car caused by a collision with another vehicle or with any other object (i.e. a pole, wall, etc.), regardless who was at fault. Comprehensive insurance pays for damage to your car caused by reasons other than collison, such as fire, theft, windstorm, flood, etc. Source: Department of Motor Vehicles