Typically, your car insurance premiums decrease each year you’re behind the wheel. As you prove yourself to be an experienced, safe driver, your insurer rewards you with discounts or lower premium rates. Yet seniors – who have years of experience and long driving records – often pay sky-high rates.
Auto insurance companies tend to view older drivers as risky to insure. The average cost 65-year-old drivers pay for insurance is a shocking $2,539 per year. So, if you’re a senior driver looking for savings, you aren’t alone.
Fortunately, there are plenty of ways you can negotiate a lower premium rate on your auto insurance policy. These are six of the best.
1. Switch to an Insurance Company That’s Just for Seniors
While most people are familiar with big-name auto insurance companies, many people don’t realize that smaller, more specialized insurers also exist. Even better, there are actually some auto insurers designed just for older drivers.
Senior drivers should search for insurance companies that specialize in providing insurance to those age 55 or older. You can look for insurers that focus on retirees, older drivers, or other categories of drivers that would be considered “high risk” by other companies.
By switching to an insurer that’s just for older drivers or retirees, you may be able to save. You may find lower-priced premiums. On the other hand, these companies may offer policies that provide more discounts you can qualify for.
2. Ask About a Senior Discount
Auto insurance companies offer a host of different discounts. You can get discounts for being a loyal customer, good driver, or even a student. Moreover some companies offer a senior discount. For instance, Geico offers a senior discount for drivers aged 50 and older.
To get a senior discount, all you have to do is ask your insurance company if they offer a senior citizen discount. If your insurance company does offer senior discounts, you can then see if you qualify to receive one. However, be aware that you may need to meet other requirements or have a clean driving history in order to qualify.
3. Take a Defensive Driving Course
One reason auto insurers charge senior drivers higher premium prices is because older drivers can struggle with challenges like vision loss, slower response time, and decreased mobility. These can cause issues and pose risks when you’re behind the wheel.
However, if you’re able to prove to your insurance company that you’re still a sharp, safe driver, then you might qualify for a lower premium rate. The best way to do this is to refresh your skills with a defensive driving course.
Drivers age 55 and older can potentially get discounts or lower auto insurance rates when they take a defensive driving course. You can take these classes online, right at home, or in-person at a local facility. Organizations – including insurers like AAA – offer defensive driving classes at affordable prices year-round.
4. Ask About Low Mileage Discounts
Another way seniors can save money on their auto insurance premiums is with a low mileage discount. Retirees often drive far fewer miles than the average driver. So, if you’ve stopped working, you no longer have a daily commute that racks up many miles.
Even better, some insurance companies will lower your rates if you don’t drive as many miles anymore. Called low mileage discounts, these savings are available just for drivers who aren’t on the road frequently.
Anyone of any age can take advantage of a low mileage discount. You just need to be able to show your insurance company that you’re driving fewer miles than you used to.
5. Switch to a Pay-As-You-Go Policy
Want a bigger discount than a low mileage discount? You may find significant savings if you switch to a pay-as-you-go auto insurance policy.
Some insurance companies are now offering new types of policies based on mileage and vehicle usage. You pay a set base rate, then pay per mile for every mile you drive. For individuals who don’t drive often or only drive around town, these policies can be more affordable.
Check with your insurance company, or shop around with other insurers, to learn more about a pay-as-you-go policy. You might discover that you qualify to save money each month.
6. Comparison Shop Online
Finally, while staying with a single insurance company often brings long-term savings and benefits, you should shop around for auto insurance. You might discover that you’ve been paying a higher rate simply because of the company you’re with.
Search online to get estimates and quotes from different auto insurance companies. Look into their policies and what kinds of coverage they offer. Ask if any discounts are offered. From there, you can compare different policies to your current auto insurance. And if you find a lower price for the same coverage, you’ll know it’s time to switch.
Don’t want to switch? You can use your price quotes and research to negotiate with your current insurer. Let them know what kinds of lower-priced quotes you’ve received from other companies. Then, ask if your insurer is willing to meet those prices. If not, you can make a switch and start saving money.