Car insurance is no more fun during your golden years than it is when you are first starting to drive. There are decisions to make, endless choices to make and a certain level of risk. Unfortunately, senior citizens also face unique and new challenges that can make purchasing car insurance more difficult.
Car Insurance on a Fixed Income
Many senior citizens live on a fixed income, which means that there is very little room for error when making financial decisions. Paying too much for car insurance can mean less money for groceries and utilities, which translates into a lowered quality of life.
Prepare your budget before you obtain quotes on car insurance. If you know in advance how much you are willing and/or able to spend, you’ll be able to tailor a policy that fits your budget.
Fewer Miles Equals Fewer Dollars
One of the ways in which car insurance companies generate premium quotes is by factoring in how many miles a driver is on the road every week. This is why they ask about your commute to work when you request a quote, but senior citizens who are retired lack such a commute.
If you only take your car to the grocery store and to friends and family members’ homes for visits, let your car insurance agent know that. Senior citizens can save significant money on car insurance if they drive few miles and therefore present a lower risk.
Senior citizens have access to programs that can help lower car insurance payments and assist them in staying safe on the road. According to the Senior Journal, mature driver safety courses teach a type of defensive driving that addresses areas of concern specific to seniors.
If you complete one of these safety courses, you might be eligible for a discount on your car insurance coverage. Just make sure to talk to your agent beforehand so you know that a particular class is accepted by that company.
Pay Attention to Age
Not your age-the age of your car. Vehicles depreciate in value over time; consequently, what you pay for car insurance during its first five years of life is different from what you pay over the next five years. Senior citizens who drive older cars should make adjustments accordingly.
For example, collision coverage is only necessary if you’ll be saving money in the long run should you get in an accident. If, however, you pay more in collision coverage over the next year than your car is worth, you’re likely tossing money down the proverbial drain.
As your car ages, let your car insurance coverage mature with it. Evaluate your coverage often and talk to your insurance agent when you’re ready to make a change.
Jump On Board
Bundled and multi-line car insurance policies are all the rage, because insurers reward loyal customers. You might not be able to bundle your car insurance with other products, but you could if you joined up with family.
Talk to your kids, grandkids, siblings and other family members about joining car insurance policies. Senior citizens can save money this way without having to give up their vehicles or their coverage.