10 Tips for Seniors to Save on Auto Insurance
Auto insurance can be tricky to navigate. You want coverage that will protect you, your loved ones, and your car, but you also want the best deal possible.
The fact that car insurance rates can start to increase when you turn 60 makes an already unpleasant situation even worse.
Thankfully, there are a few tips and tricks to help seniors save money on auto insurance. All without compromising your safety!
Take a look below to see our best 10 tips.
The best way to save money on auto insurance is to shop around. Just like with any big purchase, it helps to know your options.
A little comparison shopping at the beginning of your hunt for new car insurance, or if you’re switching, could end up saving you hundreds in the long run. And, according to studies done by Nerd Wallet, comparing insurances can save an average of $859 a year!
While this tip for saving on your auto insurance premiums might be the most time intensive, it is also the one that will save you the most money.
Decrease Your Coverage
One key factor into your insurance rates, specifically your coverage, is dependent on the type of car you have.
As your car gets older, it becomes less valuable. If your coverage and deductible cover more than the cost of the total loss of the car, which is all you can be reimbursed, you should lower your coverage. You should still cover the value of the car, just keeping in mind the car is now less valuable.
Consider Your Loses
Despite its expense, auto insurance is something you need. However, how much insurance you need could actually be the key to saving you some money.
Another way to save on car insurance is to make a few tweaks to your deductible. By slightly increasing your deductible, even by a few hundred dollars, you could save yourself money. If you know you can afford a higher deductible, this simple tip will pay out in the long run.
Bundle Insurance Policies
We’ve all seen the commercials.
You can save money by bundling your car insurance with other insurances. By putting the insurances you need, like car and home, in one bundle with the same company, you’ll actually save yourself money on both!
An added benefit is that by bundling your home and auto insurance, you’ll be simplifying your finances.
Choose a Specific Car
Most people have heard that red cars cost more to insure. While that might not necessarily be true, auto insurance rates can vary from car to car.
One easy tip for saving money on car insurance is to look at the make and model of your car. Rates will be higher for different types of cars, like mini vans and sports cars. Insurance agencies base your rate on the value of your car, how much it costs to repair, and even the theft rates of your make and model!
Save money by purchasing a car that’s already cheaper to insure.
Add a Little Tech
It makes sense that if you’re a safe driver, your insurance rates should go down. And thanks to technology, insurance agencies can actually tell if you’re a safe driver and adjust your rates accordingly.
Many auto insurance agencies now offer telematics devices to monitor how fast you drive, how often you drive, and even how well you brake! By adding one to your car, you could get insurance discounts just by being a good driver.
Get an Anti-Theft Device
Going hand-in-hand with adding tech to your car is paying a little extra for anti-theft devices. As mentioned above, one of the things considered when adjusting car insurance costs is the theft rate for specific car models and in specific areas.
If you take the initiative to add an anti-theft device or service, like OnStar, your insurance provider could offer you a discount.
To be safe, call in and make sure your insurer does offer a discount for extra security. And check if they have specific devices or services they require for anti-theft discounts.
Take a Class
Spending your retirement in a classroom may not sound the most exciting. However, by taking a defensive driving course, you may qualify for auto insurance discounts. The classes are usually inexpensive and they could save you money in the long run.
Check your current car insurance to see if they offer discounts for specific classes or call an agent to get more information.
Drive Less – Pay Less
If you’ve recently retired, another way to save money on your auto insurance is by getting a low-mileage plan.
Driving back and forth from work can rack up the miles and put you at an increased risk for accidents. Some insurance agencies offer discounts for those who drive less. In fact, if you plan on driving one or more of your vehicles considerably less, you could even get a pay-per-mile insurance policy. With these, you only pay for what you use.
When you join an insurance company, and every six months following, you’ll be offered two options for how you want to pay: Monthly or Bi-Annually.
It may be more convenient to pay your auto insurance monthly, but you could save hundreds of dollars a year by paying the lump sum upfront.
Look at your two options next time you renew your insurance and see if the money saved is worth making your auto insurance payment upfront.
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