Are you 55 and over and want cheaper car insurance? Learn how seniors today are getting discounts on their rates.
Growing older has some advantages, including saving on your car insurance. Car insurance companies like older drivers because they are more likely to follow the rules of the road when they get behind the wheel. To get seniors’ business, most car insurance companies entice them with discounts–some direct and some indirect. To encourage you to make the switch, insurance companies try to make it easy for you to change companies and load up on savings.
According to the American Automobile A-sociation (AAA), by the year 2030 more than 70 million people will be 65 or older and nearly all of them (85%-90%) will have valid driver’s licenses. Americans are growing older and remain on the move. Fortunately, seniors tend to be among the safest drivers on the road. According to the Insurance Information Institute, many seniors stay home when there’s heavy rain, ice, or snow, or when road conditions otherwise may be hazardous. Senior drivers also tend to avoid areas where driving can be more dangerous, such as superhighways or roads with poor traffic patterns, choosing quieter backroads instead. Seniors tend to drive at off-peak hours, when fewer cars are on the road. After all, retirees don’t have to fight rush-hour traffic to get to the office. According to AAA, seniors tend to obey speed limits, wear their seatbelts, and are less likely to drink and drive.
In 34 states and the District of Columbia, the law says seniors who complete an approved mature driver safety course must be given discounts on their auto policies. The age at which you qualify for this opportunity varies from state to state. The youngest is 50; the oldest is 65. Even if your state does not have such a law, insurers still may provide a discount to encourage you to sign up for a safety course. The courses are designed to help seniors brush up on their driving skills. Courses take between four and eight hours to complete. Some are in-person and some are available online only (especially post-pandemic). Organizations such as AAA, AARP, and the National Safety Council all offer mature driver safety courses. Plus, some insurance companies have their own courses open to their senior policyholders. Typically there’s a small fee for the courses, but it’s likely to be much less than what you will save with the discount.
As a senior driver, you’ve gained experience and can use your good driving record to your advantage to save money. Here are 10 discounts that you may be able tap into as a senior to save anywhere from 5% to 20% on your insurance premiums. The savings may seem small, but they can add up to hundreds of dollars. Go for any and all that you qualify for now, then revisit the list in a few years when more savings may be headed your way.
Retired? You’re likely driving fewer miles than when you worked and commuted daily. Call your insurance company when you retire and let them know. How much you drive factors into your rates; you can save 5% to 30% if you’re driving less. The average driver puts 12,000 miles a year on his or her car, so anything under 10,000 could qualify you for a low-mileage discount. According to the U.S. Department of Transportation Federal Highway Administration, the average annual mileage for those 65 and older is 7,646 miles, making low-mileage discounts an option likely to pay off.
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GST taxpayers can't claim any pending input tax credit if this return is not filed by November 30, 2024 for FY 2023-24
