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Importance of Discounted Car Insurance for Seniors
For older drivers who have retired and are no longer part of the workforce and are concerned about being financially stable, saving money is something to be considered. For this reason, choosing a company that offers discount car insurance for seniors is an important consideration.
Tips for Seniors to Save on Insurance Premiums
There are several steps that seniors can take to qualify for special programs and discounts on their car insurance. These include:
- Taking a driving test.
- Be selective about the car type.
- Provide car safety.
- Less mileage.
- Increase the deductible.
- Eliminate unnecessary coverage.
- Ask about bundled options.
- Research insurance rates.
Check with the state where you reside to find out if discounted car insurance for seniors is an automatic process or if a class must be completed to qualify. Groups such as AARP and AAA may offer classes online whereas other insurers require the driver to tale the class in person.
The classes are available at a nominal fee and provide a wealth of information covering areas such as:
- Effects of aging and medications while driving.
- Safely addressing and accommodating those changes.
- Navigating challenging driving situations.
The type of car you choose can have a direct impact on the cost of insurance. Typically, cars with lower premiums are models that can be repaired or replaced cheaply, driven by experienced and responsible drivers, and rated with high marks for protecting passengers and the driver in the event of a crash. Check with insurance companies to find out if they offer discounts for particular features of the car such as air bags and an anti-lock braking system.
Protecting your car from being stolen not only helps prevent loss of the vehicle it also can earn you a discount on your insurance. Many insurance companies offer a discount when technology is installed such as an alarm system, devices that disable/prevent the car from being started, and tracking software such as OnStar. Check with your insurance agent to verify if these, or other anti-theft devices, qualify you for a discount.
The less miles you travel should reflect in a lower insurance premium. Retirees who are no longer commuting to work should see a decrease in the cost. Inform your agent of the change in your driving status so the amount can be adjusted. There are also companies that offer a pay-per-mile program, which calculates the premium based on driving usage. Several companies such as Allstate, Nationwide, Metromile, Mile Auto, and Esurance offer the program in certain states.
If you are in a financially stable position, consider raising the deductible. By doing so, you will lower your premium. The way deductibles work is the lower the deductible amount you choose, the higher the premium. If you go with a higher deductible, the premium is lower. For example, if your car breaks down and needs repairs and the total cost of the repair bill is $5,000 and your deductible is $1,000, you pay the $1,000 out-of-pocket and the insurance company pays the $4,000 balance.
Keep in mind, the higher the deductible you are able to afford means the insurance company pays less, which is reflected by lowering the cost of your car insurance. In other words, the more the insurance company must pay, the more you will pay for coverage.
There are several reasons why you should consider dropping unnecessary coverage. These include such things as the lack of needing a rental car should your vehicle break down because you are no longer commuting to a job. It may also not be necessary to carry gap insurance if your car loan is paid off or the balance is minimal. For vehicles that aren’t new, comprehensive and collision coverage may not be necessary if the car’s value minus the deduction isn’t at least 10 times the amount you pay for the premium. In this case, consider removing the coverage from your plan.
Bundling options are available from many insurance companies when you combine your car insurance with other policies. The total premium will receive a discount when the car insurance is bundled with homeowner’s insurance, for example. For those with a boat, motorcycle, or RV, these policies may also be eligible to bundle. Also, life insurance and renter’s insurance are options for bundling. Check which policies apply with your insurance.
Research Multiple Quotes
According to Bankrate.com, the cost of insurance premiums can vary from location to location based on individual insurers, the state where the vehicle is registered, and the neighborhood where the vehicle is housed. For example, the cost of the premium you currently have may be higher if you relocate based on the company’s policies. It is recommended that a comparison of insurance quotes be done on an annual basis to ensure you are getting the discounts you deserve.
Factors Affecting Insurance Rates for Seniors
Personal factors that can affect the cost of car insurance for seniors include where you live and your driving history, but overall, as you get older, the cost of your premium should decrease.
Statistics note that older adults in the 50s and 60s range are receiving excellent rates for their car insurance. As you get older, factors that may result in premium discounts include:
- Your driving experience.
- Claim history.
- Less drive time.
Companies with the Lowest Car Insurance for Seniors
According to The Zebra, eight well-known insurance companies offer cheap insurance for seniors. Ranked from the best on down for 6-month premium and monthly premium payment cost. The companies are as follows:
- Nationwide: $460 – $77
- GEICO: $527 – $88
- USAA: $535 – $89
- Progressive: $559 – $93
- State Farm: $573 – $96
- The Hartford: $651 – $108
- Farmers: $682 – $114
- Allstate: $950 – $158
While the thought of cheap insurance may make you think it is a good deal, the coverage provided may not be adequate to cover your needs. When looking for inexpensive coverage, consider providers that focus on the insurance needs of senior drivers such as AARP and its partnership with The Hartford.
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