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October 6, 2020Retirement Wealth
As a senior, finding the best car insurance for you is all about finding excellent customer service at the right price. So if you're aged 50 or older, the time has come for you to enjoy the best car insurance rates that are a true reflection of your good driving history and many years of experience on the road.
Even though your life will probably get more costly as you get older, your life as a senior will get sweeter in a lot of ways. When it comes to your auto insurance, you should be able to get the best car insurance rates that reflect your maturity and experience as a senior driver and this means getting better pricing and senior discounts. While your car insurance rates may drop when you're in your 50s, you may notice that the costs of auto insurance will increase in your 60s and 70s. It may not be as high as it would be for a teenager but it's relatively higher than when you were in your 30s and 40s. And because you're probably retired and on a fixed income, this is certainly the right time to look for the best car insurance for seniors.
Fortunately for you, there are a lot of insurance companies that specialize in car insurance and offer discounts that make auto insurance more affordable to seniors. You should, therefore, take a look at the best car insurance for seniors and tips on how to save on the cost of auto insurance for retirees now that you're on a fixed income.
With so many insurance companies out there offering auto insurance for seniors, how can you determine the best car insurance for you? We've done a thorough research and compile a useful list of the best car insurance for seniors. Among other things, we will look at the coverage offered by these insurance companies; evaluate their discounts as well as various incentives that are beneficial to seniors.
But before jumping straight into the best car insurance for seniors, there are various things that we need to highlight as they're of great importance when looking for the best auto insurance for seniors.
Here are the reasons why you should find an auto insurance policy for senior drivers.
Several crucial factors can affect the rates of your auto insurance as a senior and even how much insurance you're expected to buy. Let's take a brief look at these factors.
Age and Health - Age and health are among the primary factors that auto insurance companies consider when determining the appropriate car insurance rate for you. While health may be used to determine how fast you can react to situations on the road, age is generally used to measure your driving experience and accident risk.
Gender - Gender also plays a crucial role in auto insurance costs for seniors. Generally, men will pay nearly 12% more than women.
The type of car that you drive - Switching from a standard car to a high-end car will mean that you pay more insurance premiums. For example, driving a Mercedes Benz will cost more than driving a standard family car such as Ford Focus.
How often you drive - As a senior, you will most likely take a laid back approach when it comes to being on the road. But if you're planning to spend more time on the road, then your insurance rate will be higher. So if you're still paying the same premium as when you were driving to work daily, you probably have the worst car insurance deal now that you're retired. Remember, driving to work daily comes with several risks that are greatly reduced when you're retired and driving less frequently.
Although many states stipulate that drivers aged 55 or older should be given car insurance discounts for their driving experiences, good driving, and/or for taking approved driving courses, you're probably still wondering why auto insurance often costs more. Well, most insurance companies categorize older senior drivers as being more accident-prone than their middle-aged counterparts. This is because they often have age-related issues revolving around vision and hearing issues, slower reflexes as well as other health conditions that may affect their driving.
Similarly, insurance companies tend to base their higher rates for senior drivers on the fact that many seniors will most likely suffer more injuries and fatalities than their younger counterparts in case of an accident and increases their claim costs. As such, auto insurance for seniors tends to be more expensive and the premiums are likely to increase as you get older.
At this point, you're probably wondering whether your auto insurance premiums will increase just because you become a senior. And what happens if you do not have any bad history of accidents or bad driving behaviors? Well, this may depend on the insurance company you choose, but the number of auto insurance premiums that you choose will be, to some extent, be determined by the entire age group that you belong to.
Here's what to expect based on your age.
Auto insurance for 50-year-olds tends to be a lot cheaper than it is for both older drivers and younger drivers. The idea here is that drivers in their 50s are among the safest since they've attained many years of experience and generally have proper hearing and vision as well as quick reflexes based on their good health.
Unless you've become prone to accidents, you are more likely to pay a lot less for your car insurance in your early 60s. However, many insurance companies are likely to increase their insurance premium rates as you reach 65. So as you reach 65, it would be a lot better to start shopping for the best auto insurance for seniors and a better deal.
According to statistics from the National Transportation and Safety Bureau (NTSB), drivers aged 70 or older generally experience more accidents and fatalities than their younger counterparts. And because these accidents and fatalities often lead to more claims, you're more likely to pay higher auto insurance rates in your 70s. The idea here is that your ability as a driver will significantly degrade in your 70s.
According to the American Automobile Association (AAA), drivers aged 80 or older are 17 times more likely to get involved in accidents than drivers aged between 25 and 64. This is because of the fragility that naturally comes when a person is in the eighth decade of life. As such auto insurance will get costly, so it's essential to shop around for the best auto insurance for seniors especially now that you won't be driving that regularly.
As a senior, your auto insurance rates will drop in your 50s but will gradually increase as you hit your mid-60s and 70s. This means that you have to look for tips on how to save on your auto insurance and here are the most crucial ones.
While most states mandate that you should get auto car insurance as you attain the age of 55, taking up driving classes to brush up on your driving skills can be a great way of saving on your auto insurance. While many classes are offered online by groups such as AARP and AAA, some classes can be offered in person. The best thing to do is to confirm with your state's insurance department to determine which driving classes can make you eligible for discounts.
Generally, these classes are relatively cheap and will cost you not more than $20 in many states. They often cover a lot and you'll be able to learn various things including how your age and medication might affect your driving skills. You'll also learn various ways to help you safely accommodate such changes and how you can deal with various challenging driving situations at that age.
In short, senior driver refresher courses can help you reduce your car insurance premiums by 5-15%.
When you have retired, chances are that you'll be commuting less and less, so you might not need a second vehicle. The best thing to do is to move to a once vehicle insurance policy so that you can streamline your finances and save some money.
The type of car that you drive will affect your auto insurance premiums, so it's important to consider the type of car that you type of car next time you go car shopping. For example, insurance for a high-end car will cost a lot more than that of a standard family car. Keep in mind that the cheapest cars in terms of insurance are those that do not cost much to replace and repair. They also must be good at protecting the driver and passengers in the event of a crash. Again, most insurers will offer additional discounts for cars equipped with airbags and antilock brakes, so these are some of the features to look at when car shopping.
It's of great importance to let your insurer know that you're now commuting or driving less than you used to now that you've retired. Depending on your state, your insurance company should adjust the premium rates accordingly based on your mileage. This can be a great way of having your insurance premiums reduced by about 10%.
This is also the best time to consider the pay-per-mile program as it determines your auto insurance premiums partly based on how much you drive your car. This will, of course, involve plugging a device into your car's diagnostic port so that it can record the mileage that you cover. Keep in mind that most insurance companies will categorize 5,000 to 7,000 miles as "low mileage" but other insurers could be even more generous.
While you do not have to be super high-tech to get discounts on your auto insurance for seniors, using anti-theft devices will not only help you avoid losing your car to thieves but it can also give your discounts with many insurance companies. Technological devices such as disabling devices, alarms, and vehicle tracking devices can lead to discounts.
It's, therefore, important that you check with your insurer some of the things that you can do for you to qualify for an auto insurance discount. And even if you do not want to get so much involved with technology, you can keep in mind that having your Vehicle Identification Number onto the windshield can lead to discounts.
As a senior car owner who is probably on a fixed income or budget, it's essential to take a closer look at the details of your auto insurance policy. By doing that, you'll realize that there are a few things that you can have removed from the policy. For example, gap insurance can be very unnecessary if you don't have a car loan. Similarly, you may not need coverage for a rental car if your car is in repair, especially now that you no longer commute to work.
If you're wondering what a deductible is, it's the amount of money that your insurer subtracts from the cost of a comprehensive or collision claim. Auto insurance policies that have low deductibles are often structured in such a way that you may be required to pay more if there's a claim. There's definitely no problem with this if you can afford to pay the claims. The best thing to do is to opt for a higher deductible while reducing your premiums.
Of course, there are still a lot of other insurance policies that you'll have to take even at old age. The best thing to do is to consider bundling your policies as this generally leads to discounts. In simpler terms, most insurers will offer higher discounts if you buy multiple policies from them. So if you have separate home insurance, car, insurance, or even boat insurance, you can consider buying them from a single insurance company and you'll more likely get huge discounts on your policies.
Insurance companies tend to come up with various auto insurance rates. So as a senior, you may qualify for coverage that wasn't even in existence a year or so ago. As such, it's a good idea to shop around, compare multiple quotes, and ensure that you're getting the best auto insurance deals.
You have to keep in mind that auto insurance premiums vary greatly by company, state, and location. If you've retired and looking to move to a new location, you can consider checking your options in that area and see whether or not they're offering the best deal. Be flexible, get multiple quotes from various insurers, and go for the best rates as well as what works best for you.
This is probably the part that you've been eagerly waiting for, so without wasting much of your precious time, let's roll on.
For close to four decades, The Hartford has offered what can be termed as the best auto insurance for 40 million AARP members. This insurance company specifically offers auto insurance for seniors who are members of AARP and remains one of the top insurance companies in the country.
While its car insurance policies may not be the most affordable on this list, the Hartford offers auto insurance benefits that are exclusive to senior drivers. For example, you can get the RecoverCare that can be of great help if you're injured in an accident and require help with moving around the house. Such a policy will never be dropped provided that you pay your premiums promptly and have a valid driver's license.
In terms of client satisfaction, Hartford has one of the best ratings in the insurance industry and it remains in a financially strong position, which is essential if you want an auto insurance company that guarantees that your claims will be paid in case of an accident.
As the official AARP members auto insurance, Hartford offers auto insurance policies that are similar to other insurance companies but with several additional benefits. These benefits include:
The fact that the Hartford's AARP auto insurance policy is tailored for AARP members means that it already comes at much-discounted rates. But even with that, there are some additional discounts offered by the Hartford.
If you're in the market for an insurance company that offers some of the lowest auto insurance rates, look no further than Geico. As a senior, one of the first things you'll appreciate about Geico's auto insurance policy is the company's Prime Time Contract. This is basically an automatic renewal policy to ensure that you always have your car insured provided that you have a valid driver's license and have a clean driving record in the last three years.
This is one of the leading insurance companies in the country and offers some of the most affordable comprehensive auto insurance policies in the industry.
In addition to the normal discounts for seniors, Geico offers the following.
The best of the lot is, however, the Prime Time Contract, which is specifically tailored for seniors. In addition to having a valid driver's license and maintaining Geico as your car insurance provider, you are required not to have any driver aged 25 or below on your car insurance policy. You should also have a clean driving record in the last three years before enrolling for this coverage.
It's important to note that Geico does not offer discounts that are specifically tailored for seniors. However, they have a few discounts for seniors such as:
In all honesty, most traditional car insurance policies may not make a lot of sense for you as a senior, especially now that you won't be driving that much. Luckily for you, Metromile has a plan that's specifically designed for drivers who drive less than 10,000 miles per year. In other words, Metromile offers a great car insurance deal for seasoned drivers who are in their twilight years and only get to drive occasionally.
Even though Metromile offers the same types of coverage that are offered by most car insurance companies, they have a very different payment structure. They do not charge a monthly flat rate as most insurance companies do. Instead, they break their car insurance rates into two parts: a base rate and a per-mile charge that's determined by the miles you cover.
These rates are, of course, determined by normal factors including your credit score, driving history, and age. The company has a Smart Driving app that enables them to track your mileage using a device that's plugged into your vehicle's diagnostic port. So in addition to the base rate premium that you have to pay monthly, your per-mile rate will be determined by the number of miles that you covered each month.
Here are some of the discounts offered by Metromile.
Metromile can also cap your daily miles charge at 250 miles throughout the country except for New Jersey, which is 150 miles. This is designed to ensure that you do not pay excessive fees if you occasionally go for long trips.
If you or your partner ever served in the military, it would make a lot of sense to consider getting auto insurance from USAA. In addition to offering some of the lowest rates in the country, it offers one of the best customer satisfaction ratings in the industry. The fact that it's available in all states is a bonus, especially if you're looking to relocate to another location.
In addition to being one of the top-rated insurance companies in the country, USAA offers various types of car insurance policies that are tailored to satisfy all your car insurance needs. Some types of coverage offered by USAA include:
There are even more perks if you are a member of the USAA. For example, the insurance company gives USAA members flexible payment schedules that fit within their pay schedules. It also gives USAA members the option of having easier access to the company 24/7 both through an intuitive mobile app and the company's website.
While USAA is widely known for offering some of the lowest car insurance rates in the industry, the company also offers a couple of great discounts for seniors. They include:
This is a great car insurance company for seniors who served in the military. Its military-only approach means that you'll access a wide range of discounts and benefits if you served in the military. This can also be a major downside for many seniors because you have to be an army veteran to qualify for USAA insurance.
So if you're still in the army, you should wait until after you've retired to start using the company's auto insurance. Remember, they'll consider whether or not you've been insured by USAA for the last 40 years for you to enjoy the incredible senior bonus.
As a senior, you probably have a lot of time and sometimes it makes a lot of sense to travel around the country. So if you're looking for an auto insurance company that can best suit your traveling adventures, State farm might be the best way to go. This insurance company offers the best car rental and travel expenses coverage in the industry. The rental and travel expenses coverage is unique and also affordable for seniors who love going on road trips.
The policy's rental car reimbursement can fit the bill if you want a replacement car if your car is still in the repair shop after an accident and you still need to travel. You will be covered by the collision and comprehensive insurance if you get involved in an accident 50 miles from your home. More importantly, the company covers your travel expenses including your meals, transportation, and lodging, as well as a trip to pick up your car.
If you've been driving for decades and still love to spend most of your time on the road, using State Farm's Drive Safe and Save program can help you save a lot of car insurance money. For example, you'll get about a 50% discount if they've analyzed your driving abilities through their intuitive mobile app.
The company also offers discounts to seniors who have taken defensive driving courses. In essence, the company believes that wisdom comes with age and so you should be a better driver given your many years on the road.
You've probably worked hard for decades and you are looking to enjoy the fruits of your sweat in your retirement. One way of enjoying this is perhaps by buying a luxury car of your dreams and you definitely want the best auto insurance for your new acquisition. If your current car insurance doesn't understand the true value of your luxury care, then why not try insuring it with Chubb.
As the largest publicly traded insurance company in the world, Chubb combines deep experience and precision craftsmanship to offer one of the very best auto insurance for seniors. This insurance company generally works by agreeing with you on how much your car is worth. This means that it does not look at the market value of your car when it is totaled or stolen.
So if you're a senior and do not want to drive a standard car, you can go for your favorite luxury car and buy auto insurance coverage from Chubb. If anything, the company can offer rental coverage of up to $15,000 anywhere in the world if your car is in the repair shop.
With Chubb, you're sure that you will get what you pay for and you're always guaranteed that they will pay since they have a superior financial backing to do so.
There are going to be changes in your life with every passing season. Whether you're celebrating your 16th birthday, going to college, getting married, having kids, working on your career, and eventually retiring, your auto insurance needs will always change. As a senior, your auto insurance will never be the same as it was when you started driving or in your 30s. Your lifestyle has changed and you're probably driving less than you used to do. For this reason, you should get a perfect auto insurance solution for you and your situation.
And because you're perhaps on a fixed income, you should look for an auto insurance coverage that suits your type of car, the type of lifestyle that you want to lead, the monthly rates that are offered, and of course, the senior discounts that are offered. We believe that age comes with wisdom and the best thing to do when looking for the best car insurance for seniors is to shop around and explore what is best for you. Luckily for you, we've listed some of the best car insurance for seniors. They offer some of the best options and discounts that will help you glide graciously and with poise into your golden years.
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