How to Get the Best Rates in the USA
Auto insurance is a necessity for all drivers, including seniors, but it can often be a costly expense. To help save money, here are the top ten auto insurance hacks for seniors to get the best deals available.
1. Take Advantage of Senior Discounts
Many auto insurance companies offer discounts specifically for senior citizens. These discounts typically apply to drivers aged 55 or older. Since insurers recognize that seniors are often more experienced drivers with lower accident rates, they provide special pricing incentives. If you qualify, you could save anywhere from 5% to 15% on your annual premiums.
When shopping around for insurance, ask if the company offers a senior discount and if there are additional qualifications, such as completing a safe driving course.
2. Complete a Defensive Driving Course
Completing a defensive driving course is a proven way for seniors to lower their insurance premiums. Many insurance companies reward drivers who take these courses, as they can help reduce the risk of accidents by teaching essential skills and strategies for avoiding common driving hazards. In some states, completing this course can lower your premium by 10% or more.
Check with your insurance provider to see which courses are eligible and if there’s a maximum discount you can receive. Some courses are available online, making them easy to complete from home.
3. Consider Usage-Based Insurance
If you no longer drive as much as you used to, you might benefit from usage-based or pay-per-mile insurance. This type of coverage charges you based on how many miles you drive, which is ideal for seniors who only use their car for occasional errands or local trips. By switching to this type of plan, you could see significant savings compared to traditional policies.
Several major insurers, such as Nationwide’s SmartMiles or Allstate’s Milewise, offer these programs. You’ll typically have to install a device in your car to track mileage, but the savings can be worth the small inconvenience.
4. Bundle Insurance Policies
Many seniors have multiple types of insurance, such as home or renters insurance. Bundling your auto insurance with these other policies can often result in significant discounts. By purchasing multiple policies from the same insurer, you can often receive a multi-policy discount, sometimes saving as much as 20% off your total premium.
When bundling, it’s important to compare the rates for both your auto and home insurance to ensure you’re getting the best overall deal. Some companies may offer better auto insurance rates but higher home insurance premiums, so evaluate both.
5. Review and Adjust Your Coverage
As you get older, your auto insurance needs may change. For example, if you drive an older car, you might not need comprehensive or collision coverage, which can be expensive. These types of coverage pay for repairs or replacement of your car if it's damaged in an accident, but if the car is worth less than what you’d pay in premiums or deductibles, it may make sense to drop them.
It’s also a good idea to periodically review your liability coverage. Seniors on a fixed income may want to adjust their coverage limits to ensure they have adequate protection without overpaying for excessive coverage.
6. Ask for Low-Mileage Discounts
Many seniors drive fewer miles annually than younger drivers, especially if they're retired. Insurance companies often offer low-mileage discounts for drivers who drive less than a certain number of miles per year, usually between 7,500 and 12,000 miles. If you’re not driving much, make sure to ask your insurer if they offer this discount.
7. Maintain a Good Credit Score
Your credit score plays a significant role in determining your auto insurance premium. Insurers view drivers with good credit as less likely to file claims, which translates into lower premiums. For seniors, maintaining a good credit score can make a significant difference in auto insurance rates.
To keep your credit score high, pay bills on time, reduce debt and regularly check your credit report for any inaccuracies. Even small improvements in your credit score can lead to noticeable reductions in your insurance premiums.
8. Compare Quotes from Multiple Insurers
One of the most effective ways to save money on auto insurance is to shop around and compare quotes from multiple insurers. Even if you’ve been with the same company for years, it’s possible that another insurer could offer you a better rate, especially if your driving habits have changed.
Use online comparison tools to gather quotes quickly, but also consider calling agents directly to discuss specific discounts for seniors. Rates can vary widely between companies, so it’s worth the effort to compare.
9. Take Advantage of Group Discounts
Many organizations and associations offer group auto insurance discounts for their members. If you’re a member of AARP, for example, you may be eligible for reduced rates through their partnership with The Hartford. Other groups, such as alumni associations or professional organizations, may also offer similar discounts.
Check with any groups or associations you belong to and ask if they offer discounts for auto insurance. These group rates can sometimes save you more than standard senior discounts.
10. Install Safety Features in Your Vehicle
Insurance companies often provide discounts for cars equipped with advanced safety features, such as anti-lock brakes, airbags and electronic stability control. For seniors, having these features in your vehicle not only improves safety but can also lead to lower premiums.
If you’re in the market for a new car, look for one that includes these safety technologies. If your current vehicle lacks some of these features, consider adding aftermarket safety upgrades, like anti-theft devices, which can also help reduce premiums.