Senior Auto Insurance

Betty Friedan once said “Aging is not lost youth but a new stage of opportunity and strength.” Is that some type of joke? Aging is often accompanied by depression and medical bills. But seniors must maintain their insurance while on reduced incomes. Luckily, older drivers have some of the lowest car insurance rates to a point.

Medical Issues

The good (and bad) news is there is no exact age when a driver is considered too old to drive. As drivers age, vision and hearing deteriorate. Comprehension and reaction times will slow.

Also Seniors don’t heal as fast after an accident and may already have complications from another health condition. Often the car insurance company that will pay for that care. When combined with the likelihood of much older seniors getting into daytime accidents, insurers may charge higher premiums.

Senior Drivers

Drivers 75 and older have one of the highest rates of fatal daytime accidents. That is why (a) taking a drivers safety course and (b) going with a auto insurance that gives seniors discounts is very important. With many auto carriers, your premium may actually increase with advanced old age (80-90).

Major auto insurance companies I researched provide a 5% – 10% discount to drivers beginning at the ages of 50 or 55.

AARP and The Hartford

AARP’s partnership with The Hartford makes it the leader when it comes to auto insurance and seniors. They offer a Full 12-month rate protection and lifetime renew ability are standard with their exclusive plan from The Hartford.

Benefits include:

  • Full New Car Replacement Guarantee
  • Lifetime Repair Warrantee
  • Lifetime Renew ability
  • Fast, no-hassle claim payments
  • and Online Customer Service Center for claim reporting, bill payment and more.

Driver safety courses

Driver safety classes are available in most states and cost around $20 for a two day course. Most states mandate auto insurance discounts for such courses, and many insurance companies offer the discounts voluntarily. Insurance companies will typically provide as much as a 10% discount on car insurance for a three year period upon completion of the class.

AARP also offers 55 ALIVE, mature driving courses through local AARP chapters. Many insurance companies like Esurance offer subscriber discounts with proof of course completion. Just be sure to check eligibility rules because these discounts are not provided with every auto insurance carrier. AAA also offers maturing driving classes. For a complete course list, visit the web site of the National Safety Council at www.nsc.com

Retiree discount

There are discounts available for retired individuals. If you are retired and are not employed full time, you may be eligible for a discount of up to 5% off your car insurance. Many seniors and near seniors are now retired, laid off, right sized, whatever you want to call it, in this Obamacare economy. You don’t make much, but the good news – you don’t spend as much. If you’re a retired driver, then you can classify all your cars for pleasure use only.

If you already get an insurance discount for having a certain profession, like doctor, teacher or engineer, you may lose that discount to get the retiree discount, so it could be a wash.

Reduced mileage discount

Personal Injury Protection (PIP) is another area the car insurance company could give you a reduction, if you are driving a maximum amount of miles and over a specified age. There are many other special car insurance discounts not related to age you may qualify for.

Since many companies are now automating and moving overseas because of excessive US regulation, many of us have fewer clients and fewer miles to drive. Then again, you may have to commute further for a job

Summary: Seniors (55 and over) may qualify for lower rates, but as you age, your insurer may require a medical exam if legal in your state. Very old drivers, 75 and over may see their rates increase, depending on your carrier. Senior drivers should enjoy lower rates until it’s not practical for them to drive anymore. But it’s hard to give up ones independence.

Make sure you get a quote in the beige box above, some insurers charge seniors more than others.