Why do car rental companies penalize renters who are under 25 and make them pay more but not senior citizens

Question

they both get into accidents so why do they only penalize one group and not both

Answer 1

Because people under 25 don't have as much driving experience (max 9 years) and let's face it, are more likely to drink and drive than someone's grandparents. I also think senior citizens don't rent cars very often - by that time they usually have their own or have enough money to fly places.

Answer 2

while senior citizens cause more accidents than "average" they are not usually directly involved and their cars are not usually damaged (senior driver pulls out in front of oncoming traffic who swerves and avoids the senior driver but hits someone or something else in the process, senior driver drives away unaware of what they have just caused and unharmed by their own actions, hence costing the rental company nothing)

Answer 3

Good question. Not fair at all.

I think the answer is that seniors would backlash and younger folks tend to just tolerate it.

Additionally people feel obligated to show additional respect for elders. That is a good thing, but kind of a double-edge sword as we see in a case like this one.

Answer 4

Insurance statistics. The accident rate for the under 25 group has proven to be higher.

Answer 5

Young people are more prone to crashes because of their reckless behavior. They are more irresponsible and like to "go fast." This increases the chance of an accident happening, so in order to keep them in check, the penalize the person more than a senior citizen.

Answer 6

because they crash more, simple as that.