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Lower Auto Insurance Costs for Seniors

By Laurence – on in News, Discover, Learn

The AAA states that, on average, senior citizens are more likely to be involved in car accidents than young drivers, and so senior citizens are charged higher premiums by insurance companies. Insurance companies are also concerned with the fact that senior citizens have a greater likelihood of suffering injury in accidents due to their greater fragility. These factors mean that your automobile insurance will almost certainly rise in cost as you get older, but there are some things you can do to mitigate this.

Take some driving lessons states that no fewer than 34 US states have passed regulations that mean that if a senior takes driving lessons, it is mandatory for insurance companies to offer them discounts. If you live in one of these states, taking driving lessons will give you a reduction in your insurance premium. The discount varies from state to state between 5% and 15%; not only could lessons cut your premiums, they can also help you be a better and more defensive driver. Even where your state doesn’t have these regulations, you may find insurers still offering a discount for seniors who have taken a driver safety course or lessons.

Drive a safer car

The safer your car is, the lower the premium you will be charged by an insurance company. When you are selecting a new or secondhand vehicle, think about its safety rating. There are a number of safety add-ons that some cars provide that can boost your safety, including:

  • Review cameras with reversing assistance
  • Stay in lane warnings
  • Automatic braking systems
  • Collision avoidance sensors
  • Parking assistance

Not every insurance company will give you an extra discount for having such features, but of course, if they help you to stay clear of accidents, that will automatically help your premiums.

Upgrade your current car

If you don’t want, or can’t afford, to get a new car with additional safety features, maybe you should consider upgrading your existing vehicle’s safety features with some of the aforementioned devices, many of which can be retrofitted by your dealer.

Some insurance companies will offer a discount to drivers who have tracking devices installed in their vehicles. Such devices will monitor your driving style and habits, and if they show that you are safe driver (e.g., never break the speed limit, drive more carefully in poor conditions, etc) you can get a premium reduction.

Let your insurance company know changes in your driving habits

Seniors tend to drive less than they did when they were younger (no more commuting or school runs), and those who are not on the road so much obviously lower the risk of having accidents. This means that insurance companies can offer discounts to those with limited mileage.

Insurance companies usually set the bar for low mileage driving at around 5000 to 7500 miles per annum. If you do less than this, you may be offered a saving about 10% on your premiums, depending on place of residence. You may have to have your odometer checked from time to time to verify your mileage.

Some insurance companies will provide a policy based on payment per mile. With such policies, you will pay a monthly sum determined by the number of miles you’ve driven. You have to agree to a tracking device being fitted to your vehicle, and the information gathered from it will be used to determine your monthly premium.

Don’t take the first quote you’re offered, and make comparisons

Many drivers never leave the first company they were insured with, due to habit, laziness or loyalty. However, if you find that your insurance premiums keep on rising as you get older, you may be thinking that it must be time to see what else is available. Insurance companies determine what premiums they will charge for a particular type of driver, vehicle, and area by applying algorithms that decide what level of risk a driver presents. Different companies use different algorithms, and you may find substantial differences between the premiums requested. There are many comparison websites that will help find the best deal available for you.

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Laurence not only holds a certificate in finance, but she also has several years of professional experience in this field. After helping many of her clients better manage their bank accounts, she decided to share her expertise by writing articles on the subject. You can now read her on Get-Finance.