Shocked By Rate Increases Once You Hit 65? Here's How Senior Drivers Can Keep Their Auto Insurance Premiums Affordable
Although auto premiums start out high when you are a teenager and then decrease slowly, they begin to rise slightly again when you are in your 60s. The reason for this is that older drivers get into more accidents than middle-aged drivers and their accidents tend to result in more serious injuries, resulting in higher claim costs. In order to cover this, insurance companies will raise the premiums of older drivers. However, you'll never end up paying as much for auto insurance as you did when you were a teenager and there are a number of ways to keep your premium costs low as you age. It's worth shopping around for differing auto insurance companies to find the ones that have special programs for seniors that can keep your premiums low. Here's what you need to know about keeping your auto insurance premiums low as you get older.
When Your Insurance Premiums Rise, Start To Shop Around
Insurance companies rate the risk of senior drivers in different ways; many auto insurance providers will begin to raise premiums at the age of 65, but many will wait until 70 or even 75 to begin increasing rates. If you are in your 60s and receive a notice that your premiums are increasing, it's time to shop around. It's likely that a different insurance provider will offer lower rates until you are older.
Attend A Safe Driving Class For Seniors
Many states mandate that insurance companies offer a safe driving class for seniors that may be attended in order to reduce your premiums; these courses are usually sponsored by the AARP and are very inexpensive. If you successfully complete one of these courses, you'll save more money on your premiums than you spend on course costs. Don't worry about being thrown in with a bunch of teenagers – these safe driving courses are designed exclusively for seniors and discuss the difficulties older drivers have. They'll talk about the effects of medication on driving, situations to avoid if your reaction time is slowing down and when it may be time to stop driving at night.
If You Don't Drive As Much, Tell Your Auto Insurance Company
If you have retired and no longer have the need to commute to work every day, make sure that your insurance company knows this information. You may qualify for a special low-mileage plan if you drive infrequently and only make short trips. Since less time on the road means a lower risk of an accident and less chance of a claim being filed, your insurance company may decide to lower your premiums to represent this fact.
Consider A Pay-As-You-Drive Auto Insurance Plan
Some insurance companies offer premium rates based on mileage; they determine this information from a device that is placed in your vehicle that can tell how much you are driving, if you are breaking correctly and what times of the day you are driving. If you are driving infrequently, never driving at night and avoiding rush hour, your insurance company will know that you have a much lower chance of being in an accident and lower your premiums. This can be a huge savings on your annual auto insurance premium, so it's worth it to shop around for an auto insurance company that provides this type of insurance plan.
Contact an agency, like Mid-Alliance Insurance Associates LLC, for more help.