Tips on Auto Insurance for Seniors

iStock senior couple in car

According to a report from the U.S. Census Bureau, the country is headed for a major demographic shift. For the first time ever, in 2030 there will be more people aged 65 or older living in the United States than there are children. And that’s going to include a lot of seniors who are searching for auto insurance.

The good news is that many older people can enjoy significant benefits when they need coverage for their cars and trucks. Read on to learn all about the advantages.

• First off, your car-insurance costs should fall as you get older even if you don’t proactively seek out special rates for seniors. This is because insurance companies usually set their highest rates for younger drivers with the least amount of experience behind the wheel. Policy prices come down as you spend more and more time on the road without an accident claim. In fact, the average cost of an auto-insurance premium drops for every population group between the ages of 16 and 55. You can see small upticks in pricing after that, but big savings can still remain in play. For example, sticking with the averages, an 85-year-old driver can save more than $3,000 per year compared to someone who is only 18. Many insurance companies also go beyond the basics and offer dedicated savings programs specifically for older drivers. You don’t have to be all that old to qualify, either. With certain insurers, you can be eligible for a “senior discount” even if you’re only 50.
• If you’ve turned 65, it’s probably been about 50 years since you’ve last taken driver’s education. That means going through a refresher course on the rules of the road, along with learning the latest driving tips for safety, can be a good idea. You’ll gain valuable skills that can help you avoid accidents, and many insurance companies will provide coverage discounts as a result.
• Another common way to see lower insurance prices is by leveraging the buying power of a big group. A lot of groups can qualify, too. For instance, you can check on getting less-expensive insurance through your credit union, college alumni association, or even the local chapter of a national bridge club. As a senior, you can also qualify for membership in age-based organizations that can dial up discounts even higher. Top examples include the AARP and veterans’ associations for retired military members.
• How much you drive is a key factor in setting insurance rates, since the more time you spend on the road, the greater your chance of being involved in an accident. With that in mind, take a close look at your current driving requirements. Have you been lucky enough to retire and cut out the daily commute? Are your days of cross-country road trips a thing of the past? In these situations, you should be investigating less-expensive low-mileage coverage for your vehicle. Are you a snowbird who flocks to warmer climates in the winter—and only drives a certain car at certain times of the year? If so, there’s no need for full coverage on a car you’re not using. (Note that some amount of coverage on a stored vehicle is still recommended for theft, fire, etc.)
• Just because you qualify for new senior pricing doesn’t mean you stop qualifying for other significant insurance discounts. You can continue to save money with strategies like bundling policies or adding insurance-company tracking devices. Be sure to check out our full list of tips for saving on auto insurance.