How Seniors Can Save on Car Insurance

Teenage drivers tend to have auto insurance premiums that are more expensive. However, premium rates will start to come down with each passing year. This occurs as you gain more experience on the road and prove yourself to be a safe driver.

However, seniors who have tons of driving experience are often subjected to skyrocketing premiums. The average rate seniors pay for auto insurance is at least $2,500 per year. Typically, auto insurance companies view seniors as risky clients. This is because eyesight and reflexes get poorer with age. And, therefore, seniors are thought to be more likely to get into accidents.

While you can’t stop the aging process, there are a few things you can do to get the best car insurance premiums possible.

 Enroll in a defensive driving course.

 As earlier stated, older drivers pay higher premium rates because they deal with difficulties such as poor eyesight, slower reflexes, and reduced mobility. All these contribute to the likelihood of getting into a car crash when you’re behind the wheel.

So, what if you proved to your insurer that you’re still a safe driver who’s eligible for lower premiums? One way to do this is to take a defensive driving course to polish up your driving skills.

AAA is one of the many insurers that offer defensive driving lessons at cost-friendly prices year-round. You can enroll in these classes either online or in person. Once you complete the course, you may be eligible for a discount of up to 10% off your auto premium rates.

Consider the option of higher deductibles.

 With most insurance policies, policyholders can choose the tradeoff between monthly premiums and the deductible. A deductible is the maximum amount of money that a policyholder pays out of pocket for an insured risk.

Typically, higher deductibles translate to less protection and lower monthly charges. On the other hand, lower deductibles translate to comprehensive coverage but higher monthly premiums.

When you’re old and want to reduce the amount of money you pay to your insurance monthly, choosing a higher deductible makes perfect sense. However, keep in mind that this exposes you to more risk when driving. This is because you’ll be less protected by the insurer in the event of an accident and you’ll have to pay a lot of cash out of pocket.

Look into a low mileage discount.

 Generally, seniors drive less compared to other drivers. A retiree doesn’t have daily commitments that rack up miles on the odometer. Most insurers take into account mileage when deciding your monthly premiums. More miles mean higher premiums.

And, because you don’t drive as often as before, you can ask your insurer for a low mileage discount. You only need to prove to your insurer that you’re driving fewer miles than you used to.

Choose a pay-as-you-go policy.

 Switching to a pay-as-you-go policy will give you an even bigger discount. With this policy, you pay a specific base rate, after which you pay for every mile you cover.

This is an affordable option for senior drivers who spend less time behind the wheel. Ask your auto insurance company about this option, or search around from other providers about a pay-as-you-go policy.

Turn to technology.

Technology is here to make our lives better. In fact, it can lower your insurance premiums. Some insurers use technology to decide on your premium rates based on your actual driving behavior. They use telematics monitoring devices to check your driving speed, the number of miles you drive, as well as how smoothly you step on your brake pads.

Ask your insurance provider if you’re eligible for discounts when you install these monitoring devices in your vehicle. If you’re a safe driver, you might get better premium rates.

Look into specific senior auto insurance.

 Some insurance providers offer auto insurance policies designed specifically for seniors. One such auto insurance company is The Hartford, which has an auto coverage policy for seniors and special incentives for drivers aged 50 and above.

The Bottom Line

There’s stiff competition in the insurance sector. This means affordable rates for senior policyholders. You don’t have to stick with your insurer if they’re not offering the best rates. There’s no harm in comparing quotes from several providers in your area with a view of getting the best deal out there.

Ultimately, you want to keep your finances in check, and your car insurance rates are a starting point. But, before you settle for an insurer, make sure to look online for reviews just to make sure that you’re working with the best company in the market.