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Seniors and Auto Insurance: What You Need to Know

Vehicle insurance for seniors frequently costs more because this group is more accident-prone than their middle-aged counterparts are.  Older drivers suffer more fatalities and graver injuries than younger citizens do; this makes it expensive to treat seniors after sustaining injuries. These aspects could increase claim costs.

Nevertheless, some measures can help seniors reduce their rates so they can enjoy the retirement period. Here’s what you should know about auto insurance for seniors.

Ways to Save on Auto Insurance for Seniors

Enroll for a Driving Class

In every state, teens must undertake a driver’s program to obtain a permit, then drive a set number of hours and pass a test to obtain their license. Similarly, seniors can reduce their rates by taking a driving class. This class will reduce your insurance payments while helping you brush up on the road rules even if you have an accident-free history.

In most states, vehicle insurance firms must issue discounts to seniors. For instance, you obtain a discount in Massachusetts for simply turning 65. In other states, you can only get a discount if you take a driving class.

Some classes take place in-person while others take place online through groups such as AARP and AAA. The classes are affordable and cost less than $20 in many cases. Seniors will learn how medications and aging influence driving and how to navigate ordinary but challenging driving circumstances.

Select a vehicle that’s affordable to insure

Vehicle insurance rates differ widely based on the vehicle you drive. When shopping for a car, obtain insurance quotes for the car models you’re considering. Typically, the cheapest vehicles to insure are those that cost little to replace and repair and can protect passengers and drivers in crashes.

Ensure you get all the applicable discounts based on your vehicle’s features. You’ll find that many insurers provide discounts for vehicles equipped with airbags and anti-lock brakes.

Drop Unnecessary Coverage

Examine your policy closely and establish any unnecessary coverage. For instance, coverage for a rental vehicle might be unnecessary if you no longer commute to work. You’ll also discover that gap insurance isn’t essential if you owe nothing on your vehicle loan.

If your vehicle’s model isn’t new, consider dropping comprehensive and collision insurance. This coverage will pay to replace or repair your car if it’s stolen or damaged. However, the maximum payout is usually restricted to the car’s current value minus your deductible. Determine your car’s worth and see whether it’s time to drop this coverage.

Inquire about low-mileage discounts

If you reduce your frequency of driving, you’ll reduce the chances of being involved in an accident. If you’re a retiree who no longer drives to work, the miles you log on the road will decrease considerably each year. Consequently, you’ll enjoy reduced insurance rates.

Bundle coverage

You should consider insuring your home and vehicle with the same insurer if you want to obtain a discount. On average, you can secure a discount of 11%. If you bundle an auto policy with renters and life policy, the discount can range from 2-10%.

Factors that Affect Vehicle Insurance Rates for Seniors

Various factors could influence your rates and the insurance you have to purchase. The car you drive is one factor that could affect your rates and policy. For instance, your rates will probably decrease if you switch from a high-end vehicle to a standard family vehicle.

Another determining factor is the frequency of driving. If you’re paying a similar rate before and after retiring, you’re probably paying too much. A daily commute to work comes with certain risks that decrease considerably if you reduce your frequency of driving.

Final Thoughts

You don’t have to break the bank when buying auto insurance for seniors. You’ll find many ways exist when it comes to saving.

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