State's insurers scrutinize coverage

For almost 30 years, elderly drivers in Massachusetts have enjoyed a benefit no one else has: a 25 percent discount on auto insurance premiums, worth about $250 on this year's bills.

But now the state's insurers are questioning whether the discount still makes sense at a time when national data indicate that older drivers, particularly those 75 and above, are filing claims and dying in crashes at a pace that rivals that of teenagers. Insurers in some states no longer give discounts to drivers 75 and above, and some charge older drivers more than younger adults.

The national trends have prompted Massachusetts automobile insurers to start scrutinizing older drivers more specifically. They used to gather data on drivers 65 and above as one age group, but now they are digging deeper into the same data and analyzing coverages and claims for drivers ages 65 to 74, and 75 and above. If they discover that what is happening nationally with older drivers is also happening in Massachusetts, they will probably go to the Legislature to push for changes in the 1978 law authorizing the 25 percent discount.

Daniel Johnston, president of the Automobile Insurers Bureau of Massachusetts, which represents the state's companies on rate matters, said any group of drivers that receives a discount it does not deserve is effectively being subsidized by drivers who are paying more than they should. But he acknowledged that any reduction in the senior discount would be controversial. ''You're dealing with a senior citizen class," he said. ''There's a lot of emotion involved with that."

Joseph F. Coughlin, director of the Massachusetts Institute of Technology's Age Lab, said politicians typically shy away from placing restrictions on senior drivers. ''If you think tampering with Social Security is bad, this is even worse," he said. ''Social Security pays for your life; driving is your life."

Drivers 75 and older are being scrutinized not only because they appear to be filing more claims, but because there are simply more of them. Federal statistics indicate that roughly 1 of every 8 Americans is 65 or older. By 2030, the government projects, 1 of every 5 drivers will be 65 or older, and more than half of that group will be 75 or older. Massachusetts has approximately 4.6 million licensed drivers, ranging in age from 16 to 103, and is on the same growth pattern for the number of elderly drivers.

There is no question that age affects driving skills. In general, older drivers have slower reaction times, poorer vision, less depth perception, and less peripheral vision than younger ones. Many seniors are frail and on medications. Their vision problems may be exacerbated at night or in other low-light environments. But unlike teenage drivers, who tend to think of themselves as invincible behind the wheel, seniors are risk averse. Many avoid night driving, keep their speeds down, and rarely drive after drinking.

Bill and Teresa Axten of Amesbury, who are 80 and 78, respectively, have clean driving records. They stay within the speed limit, drive only when well rested, and own a Dodge Caravan because they think it gives them a better view of the road. Teresa avoids backing out of parking spaces because she dislikes twisting around in her seat to look for other vehicles, something the elderly have difficulty doing.

''Older drivers realize they have limitations," Bill said. ''They take precautions."

Yet the Axtens say they have friends who should not be driving anymore, but refuse to give up their licenses because it would limit their independence. The couple say the state should test the driving skills and vision of drivers more frequently once they reach 70 or 75.

Massachusetts is one of only four states with no special provisions for elderly drivers, according to data compiled by the Insurance Information Institute in New York. The other states are Alabama, New Mexico, and Vermont. All drivers in Massachusetts have to renew their licenses every five years. They can renew once online -- delaying a visit to the Registry for 10 years -- but the online application requires them to disclose any vision or medical problems that would impair driving.

Many other states require road tests once drivers reach age 75. Insurers in many states also give discounts to older drivers who take an eight-hour refresher safety class offered by AARP. California and a handful of other states require doctors to notify regulators if a patient has an illness that might affect their ability to drive safely.

Crash data gleaned by the Registry of Motor Vehicles from police reports indicate that older drivers in Massachusetts, even those over 75, may be bucking the national trend of accidents increasing with age.

In 2004, there were nearly 317,000 Massachusetts drivers 75 or older and 8,084 crashes among them, or 2.6 crashes per 100 drivers, according to the Registry. Drivers between 56 and 61, a group considered one of the safest on the road, did not fare as well. They had 2.9 crashes for every 100 drivers.

''Older drivers seem to be right in line with the mainstream," said Anne Collins, the state's Registrar of Motor Vehicles.

By contrast, there were 3,775 crashes involving 16-year-olds in 2004, or 30 crashes for every 100 drivers. The Legislature is considering raising the driving age to 17.

Officials at the National Highway Traffic Safety Administration say older drivers tend to get involved in fewer accidents than other age groups, but tend to die more frequently when they do, primarily because frailty increases with age. Data from 2001-2002 indicate that motorists 85 and older surpass teenagers in fatalities per mile driven.

''These are people who slip and break their hip. How are they going to recover from a car crash?" asked Essie Wagner, older driver program analyst at the federal agency.

The Massachusetts Legislature approved a 25 percent discount for drivers 65 and older in 1978 partly to build support for an overhaul of the state's auto insurance system and partly to reward older drivers for their safe driving habits.

But new research indicates that older drivers don't all have the same safe habits. Prior to 2003, Insurance Services Office, an influential New Jersey company that provides statistical information to insurers nationwide, had recommended that drivers 65 and older receive a 20 percent discount off their premiums based on their loss claims. But in 2003, after reviewing losses within the 65 and older group more closely, the company recommended a 15 percent discount for drivers age 65 to 74, and no discount for drivers 75 and above.

Claims frequency data published by the Highway Loss Data Institute, a group funded by insurers, show claims for property damage and bodily injury generally hit a low point between the ages of 56 and 61 and then start rising at age 70. By their late 80s, drivers are filing nearly as many claims as teenagers.

Liberty Mutual Insurance Co. of Boston, which operates in all 50 states, said industry studies clearly indicate that claims frequency increases with operator age, beginning around age 65.

''All things being equal, rates for senior-rated operators would rise to reflect this," said Glenn Greenberg, the Liberty spokesman.

______________________________________________

By Bruce Mohl, Globe Staff 
Bruce Mohl can be reached at mohl@globe.com.

© Copyright 2005 The New York Times Company