Many seniors are living on a fixed income. Whether through Social Security or a retirement fund, there’s a finite amount of funds they can access, making it imperative to stretch their dollars as far as possible. Many companies offer discounts to seniors to help show them appreciation as well as stretch that dollar, from CVS and Home Depot to Denny’s and Publix.
One thing to note is that, as a senior, you may have to ask for these discounts and more, and the age of such discounts varies amongst offers. Car insurance is no different, and many car insurance companies offer senior car insurance discounts; you just have to ask.
Who Qualifies as a Senior Driver?
Senior drivers, also called mature drivers, can qualify for discounts with some insurance companies as young as 50 years old. In fact, according to U.S.A. Today, 34 states plus the District of Columbia have state-mandated discounts for seniors who take a safe-driving course. And of those 34 states, 23 offer a mandated discount for an online version of state-approved classes. Typically your senior car insurance discounts are applied for three years after completing the course, and you can re-take the course to continue your discount. Even if your state isn’t one of the 34, it’s still worth asking your agent about possible senior discounts.
Several insurance companies will honor a discount if you take a defensive driving course, which provides you with a discount and improves your driving skills to decrease the possibility of an accident in your future.
The idea behind senior car insurance discounts is that drivers of a mature age are less likely to get into an accident due to their experience on the road, are commuting less due to retirement, and drive more cautiously than younger drivers.
Do You Need Senior Car Insurance?
While there aren’t any car insurance companies offering policies specific to senior drivers, there are companies that offer a plethora of discounts for drivers of a mature age. When searching for car insurance quotes at your annual renewal, ask about companies offering these unique discounts for senior drivers.
Senior drivers can also save money on car insurance by bundling their policy to include homeowners, renters, or life insurance. Another way to save is by paying the annual premium upfront in full. Most car insurance companies tack on a monthly service fee for paying your insurance in monthly installments. While a few dollars a month may not seem like much, it could mean quite a savings over the course of a year. Seniors are often in a better financial position to pay the entirety of their premium all at once.
How Do You Qualify for Senior Car Insurance Discounts?
Qualification requirements for senior car insurance discounts will vary by an automobile insurance company. Some auto insurance companies simply require you to reach an age requirement, typically with a minimum age requirement between 50 and 65 years old. Other car insurance companies may need you to be a member of AARP to qualify for discounts. Another requirement that some car insurance companies have to be eligible for senior car insurance discounts is that you’re either retired or work less than 25 hours per week.
Senior car insurance discounts are not available in every state, so you’ll want to check with your insurance agent to see if auto insurance companies in your state offer discounts to senior drivers.
Which Car Insurance Is Best for Senior Drivers?
Dozens of automobile insurance companies offer insurance for senior drivers, whether the policies include senior car insurance discounts or not. Not all automobile insurance companies are created equal, and you may want to consider several aspects when comparing car insurance companies for seniors, including:
As mentioned, not all car insurance companies offer seniors a discount on their coverage. However, this is a great place to start when comparing automobile insurance companies and the coverage provided. Inquire about discounts based on age, length of time with the company, completion of a defensive driving course, or bundling services. Be sure to mention to your insurance agent that you’re looking to save money, specifically as a senior driver, so that they can find the best options for you.
While most automobile insurance companies carry your basic coverage options: liability, uninsured/underinsured, comprehensive, and collision, not all have the add-ons that you may be seeking. If you’re looking for extras such as new car replacement, custom parts coverage, or accident forgiveness, you will have to ask your insurance agent to search for these types of coverage specifically within each company. You may wish to add rental reimbursement or roadside assistance as a senior driver, so you need to ensure that these coverages are an option with the automobile insurance company you choose.
Customer service is an area that can vary significantly amongst car insurance providers. Some automobile insurance companies offer customer service 24 hours a day, seven days a week, through phone support. Others may provide a live chat online 24/7, often with a programmed bot to answer basic questions regarding your insurance. This live chat with a bot may help with general insurance inquiries but isn’t enough to answer specific questions if you’re involved in an accident or need immediate assistance.
Others may offer a live chat with a real person behind the other side of the keyboard, which is more personalized and immediate in assistance. Some auto insurance companies only offer customer service during limited business hours. You need to know what type of customer service you prefer as you sign up for a new policy.
How Much Can You Expect in Senior Car Insurance Discounts?
The amount of discount you’ll receive is based on several factors, including your age, driving history, accident history, location, type of coverage, amount of coverage, deductible, and miles driven per year. Most seniors can expect to receive a discount between 5% and 10% off their policy as a specific senior discount.
If you’re nearing the age of 50, you may want to talk to your car insurance agent about the possibility of senior car insurance discounts. Your agent should be able to tell you at what age you would become eligible with most companies, any additional requirements, and what type of discount you can expect. Take advantage of those senior discounts, on car insurance and everywhere else; you’ve earned them.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.