Ways for senior drivers to save on auto insurance

Written by Penny Gusner on November 14, 2012 & Posted in Auto Insurance

As drivers age, car insurance companies start to look at them differently. Once you've reached age 65, many auto insurance providers will raise your auto insurance rates.

Insurance companies say mature drivers' physical abilities have declined and that they are statistically shown to be in more accidents than middle-aged drivers. Because of frailty and persistent heath issues, older drivers are more likely to sustain severe injuries when in auto accidents.

There are, however, ways in which to counter an auto insurance rate increase. Older drivers can obtain discounts and follow these other ways to save money on their car insurance policies.

  • Participate in a defensive driving or accident prevention class. Many states require car insurance companies to give a discount (ranging from 5 to 15 percent) for taking this course, and it is good for three years.
  • If you are retired or just don't drive as much as you used to, inform your insurer to see if a discount will apply for your lower annual mileage.
  • Sign up for a pay-as-you-drive (PAYD) program -- it can save you up to 45 percent off your car insurance premium. To get a PAYD discount, you have to install a device in your vehicle and have your driving behavior monitored. After a predetermined period of time, the auto insurance provider will establish how much of a discount, if any, is given.
  • Drive a safe car. If you have airbags, anti-lock brakes and other safety features, your car insurance company should discount certain portions of your policy.
  • Take collision and comprehensive coverages off of an older car. These coverages pay out if your car is damaged or totaled, but if your deductible amount is nearly as much as the car's worth, then it's likely time to drop the coverages.
  • Review the coverages on your policy and make some changes. Raising your deductibles can lower your rates. If you have good health insurance, then coverages such as medical payments and uninsured motorist may not be needed.

The best way to save money on your car insurance as a senior driver is to shop around. Your current insurance company may charge more for mature drivers than other insurers in your area. Comparison shopping with several insurance companies will allow you to see which gives you the best discounts and overall rates.

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