As you reach 70, you may notice a significant increase in your auto insurance premiums. The good news is that there are ways to reduce these costs. By understanding the discounts available to seniors and taking the right steps, you can save money on your car insurance.
Understand Your Options
- Increased Deductible: Raising your deductible can save you 15 to 20 percent on your premiums. For example, switching from a $500 deductible to a $1,000 deductible can bring down your annual premiums.
- Adjusting Coverage: Dropping collision and/or comprehensive coverage on an older vehicle can save you money, but ensure you have enough liability coverage to cover damages out of pocket.
- Defensive Driving Course: Taking a defensive driving course can earn you discounts of 5 to 15 percent from some insurance companies.
- Mileage Discounts: If you drive fewer miles, you may qualify for discounts. These usually kick in when your annual mileage drops below 7,500 or 10,000.
Additional Discounts to Consider
- Bundle Policies: If you have multiple policies with different insurance companies, ask if bundling these policies can lead to lower premiums.
- Driver Monitoring: Some insurers offer discounts based on safe driving habits, monitored through smartphone apps or car diagnostic devices.
- Membership Discounts: Many insurers offer discounts to members of professional associations, unions, or large employers.
- Improved Credit: Paying bills on time and reducing debt can lower your car insurance premium.
How to Save Money on Auto Insurance
| Discount | Description | Estimated Savings |
|---|---|---|
| Increased Deductible | Raising your deductible can save you 15 to 20 percent on premiums. | $500 to $1,000 increase in deductible |
| Adjusting Coverage | Dropping collision and/or comprehensive coverage on an older vehicle can save you money, but ensure you have enough liability coverage. | $200 to $500 per year |
| Defensive Driving Course | Taking a defensive driving course can earn you discounts of 5 to 15 percent. | $50 to $150 per course |
| Mileage Discounts | If you drive fewer miles, you may qualify for discounts. These usually kick in when your annual mileage drops below 7,500 or 10,000. | Varies based on provider |
| Driver Monitoring | Some insurers offer discounts based on safe driving habits, monitored through smartphone apps or car diagnostic devices. | 10 to 30 percent discount |
Before you start shopping for discounts, it’s essential to understand your current insurance policy and how it compares to others. Use online tools or consult with an independent agent to compare rates and find the best deal for your needs.
“By taking advantage of discounts and being a responsible driver, seniors can save money on their auto insurance premiums and enjoy a safer and more affordable driving experience.”
As a senior driver, it’s crucial to stay informed about the latest auto insurance discounts and how to save money on your premiums.