Car insurance is essential coverage that helps cover various losses, like damage to insured vehicles and personal accident coverage. Yet, some car insurance providers have premium rates that can be quite expensive and may even increase after retirement, which can be quite a financial burden for seniors. Fortunately, there are options available for seniors looking for quality car insurance at lower prices, with the assurance of good coverage, a trusted reputation, and reliable customer service.
Compare insurance quotes regularly
The easiest way to look for cheap car insurance options is to shop around and compare rates. A senior could compare car insurance quotes from as many companies as possible to find the top choice at the lowest rate. It could also help discover new auto insurance discounts. Cheaper insurance companies are not always the biggest players in the market. One should look for cost-effective insurance options when in situations including when they purchase a new car, move to a new location, purchase a home, or add or remove a driver from their coverage.
Increase deductibles
Customers, including seniors, who increase their deductibles could help lower the collision or comprehensive portion of the premium. One can save between 15% and 30%, while other insurers could be much cheaper. Seniors should note that the higher the deductible means more money out of the pocket in case of a claim. Therefore, one should understand how the car insurance deductible functions before making a decision.
Enquire about auto insurance discounts
While one might think they have the ideal auto insurance plan, they may be missing out on certain benefits. An easy way to check is by asking the insurance agent if there are any overlooked deals and discounts. Several car insurance companies offer senior discounts. Moreover, taking a defensive driving course may also help reduce rates by about 10%. Installing an alarm or security/anti-theft device in the vehicle could also help seniors qualify for a discount. Moreover, good driver and safe driver discounts could save one between 5% and 25%, depending on the carrier.
Bundle insurance for multi-policy discounts
Seniors could save on insurance costs by bundling the insurance policies for a discount. For instance, purchasing homeowners’ or renters’ insurance from the company that provides the car insurance coverage could earn one a discount on both policies. Depending on the company, the multi-policy discounts could be up to 29%. However, one should note that they may not always save money by bundling coverage. Therefore, they must compare what it would cost to purchase the policies separately to the price break they get on a bundled deal.
Maintain clean driving records
A poor driving history could disqualify one from getting the cheapest car insurance. For example, speeding tickets, citations for driving under the influence, and accidents may influence an increase in insurance rates. Good driver discounts could help save up to 25%. The insurance company usually requires that one has a clean driving record for at least three years.
Drop unnecessary coverage
One way to ensure that auto insurance doesn’t cost much is to drop unnecessary coverage. Removing comprehensive and collision coverage if it’s an older car could help save costs. Another coverage type that could be excluded includes rental reimbursement coverage. This coverage may not be necessary if one has an extra car in the household that they could use while the primary car is being repaired after the auto accident, or if the senior has easy access to public transportation. One could also let go of personal injury protection or healthcare payment insurance if the state does not require it. However, one should ensure they consider the pros and cons of each type of coverage before excluding it from their insurance plan.
Consider these popular options
There are a couple of insurance options that are more popular among seniors.
The Hartford
The company offers auto insurance programs designed specifically for AARP members. It features discounts and coverage options tailored to drivers aged 50 and over. The 2024 AARP® Insurance Program offered by The Hartford may include an average of $507 in Member Savings. This includes about 10% off the premium, plus discounts for requesting an AARP car insurance quote for seniors online or bundling auto and home policies. Other benefits may include Accident Forgiveness and Disappearing Deductibles. One could also get rental car reimbursement coverage when they purchase policies from the AARP® Auto Insurance Program from The Hartford.
USAA
USAA insurance offers low prices for seniors and others with various complications with their driving records. The average premium is about $500 per year. One must be a military member, veteran, or military family member to be eligible for USAA auto insurance. The insurance company also offers rideshare, accident forgiveness, and new car replacement options. Seniors can look for a quote from USAA on their official website.
Geico
One could consider Geico – a popular company for cheap vehicle insurance options for seniors. This company offers options that cover attractive car insurance rates for seniors, who typically might be expensive to insure. The company also offers accident forgiveness, non-owner policies, and SR-22 filings. The average premium cost for an insurance plan from Geico is about $460 per year, one of the lowest amounts in comparison to other insurance companies in the auto insurance segment.
