Senior Auto Insurance: Getting Affordable Coverage

Senior citizens are often faced with higher car insurance premiums due to increased accident risks and a decline in vision, response time, and other factors that affect driving abilities. However, there are ways for seniors to obtain cheaper car insurance rates. Firstly, it is important to shop around and compare rates from multiple insurance companies, as costs can vary significantly. Taking a defensive driving course can also help reduce premiums, and some states mandate a discount for seniors who complete such courses. Additionally, insurance companies offer various discounts for seniors, including those for customer loyalty, good driving records, and low mileage. Bundling auto and home insurance policies can also lead to substantial savings. When choosing an insurance provider, it is essential to consider not only the cost but also the company's customer service, coverage options, and reputation. Some of the cheapest car insurance companies for seniors include Travelers, USAA, Nationwide, Geico, and Progressive. By being proactive and utilizing these strategies, senior citizens can find ways to lower their car insurance premiums.

Take a defensive driving course

Defensive driving courses are a great way for senior citizens to save on auto insurance. These courses are relatively cheap and can be taken online or in person. They cover a wide range of topics, including how ageing and medications affect driving, how to accommodate these changes safely, and how to navigate common but challenging driving situations.

The AARP Smart Driver online course, for example, teaches proven driving techniques to help keep you and your loved ones safe on the road. It covers important facts about the effects of medication on driving, how to reduce driver distractions, and how to maintain a proper following distance. It also covers the proper use of safety features like seat belts, airbags, and anti-lock brakes, as well as new technology found in modern cars. Additionally, it teaches techniques for handling left turns, right-of-way, and roundabouts, and how to adjust your driving to compensate for age-related physical changes.

AAA also offers the RoadWise Driver course, which was created in collaboration with the AAA Foundation for Traffic Safety and the National Highway Traffic Safety Administration. This course provides seniors with a robust curriculum that includes useful tips, proven methods, and practical knowledge to help them stay safe and maintain their independence on the road.

Upon completion of these courses, you may be eligible for a discount on your auto insurance. The discount amount varies by state and insurance provider, but it typically ranges from 5% to 10%. To find out if your insurance company offers this discount and what the requirements are, contact your agent or insurance provider.

Defensive driving courses are not only a great way to save money on auto insurance but also to improve your driving skills and safety on the road.

Change your driver status

One of the most effective ways to lower your car insurance premium is to change your driver status to a less-frequent one. This can be done by contacting your insurance provider and informing them of your new driving habits. If you are driving less, you can also consider pay-per-mile insurance, which bases premiums on the number of miles driven.

Lower your annual mileage

If you have recently retired and expect to drive less, be sure to inform your insurance provider. Reducing your annual mileage can result in a lower premium. This is because insurance companies view drivers who are on the road less as less risky. When getting a quote, you can select "leisure" as your driving purpose and estimate the number of miles you anticipate driving in retirement.

Choose pay-per-mile insurance

If you anticipate a significant reduction in your driving, you may benefit from pay-per-mile insurance. This type of insurance bases your premium on the number of miles you drive, so if you're driving less, your premium will be lower. This can be a cost-effective option for seniors who no longer need to commute daily.

Take advantage of low-mileage discounts

Most insurance providers offer discounts for drivers who reduce their annual mileage. By informing your insurer of your reduced driving habits, you may be eligible for these discounts and lower your premium.

Switch to a usage-based insurance program

Some insurance companies offer usage-based insurance programs, such as IntelliDrive by Travelers, which can benefit safe senior drivers. These programs monitor your driving behaviour and can result in lower premiums if you demonstrate safe driving habits.

Consider Nationwide's SmartMiles program

Nationwide offers a pay-per-mile insurance program called SmartMiles, which bases rates on the number of miles driven. This can be an excellent option for seniors who find themselves driving less frequently after retirement.

By changing your driver status and taking advantage of the associated benefits and discounts, you can significantly reduce your car insurance premium. This is a great way for senior citizens to save money on their auto insurance while still maintaining the coverage they need.

Consider usage-based insurance

Senior citizens who are retired or don't drive much can benefit from usage-based insurance programs, which calculate premiums according to driving habits. These programs are ideal for safe senior drivers who drive fewer miles than average.

For example, Travelers, one of the cheapest insurance providers for senior citizens, offers IntelliDrive, a usage-based insurance program. Similarly, Progressive offers Snapshot, a usage-based program that can increase your rates if your driving score is low. About 20% of Snapshot drivers see their rates increase.

Other insurance companies that offer usage-based insurance include:

• Geico
• USAA
• Erie
• Auto-Owners
• Nationwide

Compare quotes from multiple insurers

Comparing quotes from multiple insurers is a great way to find the best car insurance for senior citizens. Here are some tips to help you get started:

Understand the Factors Affecting Your Premium:

Your premium is based on various factors, including your age, gender, vehicle, location, credit history, driving record, and claims history. Understanding these factors can help you identify areas where you can improve to get a better rate. For example, improving your credit score or maintaining a clean driving record can lead to lower premiums.

Gather the Necessary Information:

Before starting your search, have the following information ready: personal details (name, date of birth, address, etc.), driving history, insurance history, vehicle information (make, model, Vehicle Identification Number), and payment details. Having this information readily available will streamline the quote process and ensure more accurate quotes.

Use a Trusted Comparison Site:

Utilize a trusted insurance comparison site, such as The Zebra, NerdWallet, Compare.com, or Insurify. These sites allow you to input your information once and receive quotes from multiple insurers, making it easier to compare rates and coverage options. Be cautious of lead-generation sites that sell your information to insurers, as this may result in unwanted spam and contacts.

Evaluate Coverage Options:

When comparing quotes, consider the different coverage options offered by each insurer. In addition to the required liability coverage, explore optional coverages like uninsured/underinsured motorist protection, comprehensive, and collision. Evaluate which coverages are most important to you and how they fit within your budget.

Consider Customer Service and Reviews:

In addition to price, consider the quality of customer service and claims satisfaction offered by each insurer. Look for companies with positive reviews and a low number of complaints. You want an insurer that will provide reliable support and handle claims efficiently if you ever need to file one.

Ask About Discounts:

Insurers offer a range of discounts that can help lower your premium. Ask about discounts for safe driving, bundling policies, insuring multiple vehicles, having safety features in your car, or being a loyal customer. Don't be afraid to negotiate and see what savings you can unlock!

Compare Quotes Regularly:

Don't just settle for the first quote you receive. Compare quotes from multiple insurers to ensure you're getting the best rate and coverage for your needs. It's a good idea to compare quotes every six months, as rates can change frequently due to market fluctuations. Remember, you can always switch insurers if you find a better deal!

Ask about senior citizen discounts

When looking for cheap auto insurance, senior citizens should always ask about senior citizen discounts. Many insurance companies offer these, and they can make a big difference in the cost of your insurance.

For example, GEICO has a Prime Time contract for those aged 50 and over. This guarantees policy renewal and can be applied when you first buy a policy or at the time of renewal. To qualify, you must meet certain criteria, including having no operators under the age of 25 and having no violations or accidents in the past three years.

Nationwide also offers a pay-per-mile insurance program (SmartMiles) that may be a good fit for seniors who drive less. This program bases premiums in part on how many miles you drive each month.

Additionally, some states mandate a mature driver discount for those over a certain age (usually 50 or 55) who complete a defensive driving course. This can be as simple as taking an online class, and it can save you a significant amount on your insurance.

Other companies that offer senior discounts include:

• USAA
• Erie
• American Family
• Progressive
• State Farm
• The Hartford
• Farmers
• Allstate

Frequently asked questions