Low-cost auto insurance for retired individuals isn’t a miracle. We’ll give you tips on how to find the cheapest auto insurance for senior citizens!
As a retired individual, you’ll more than likely see your premiums shooting through the roof! No, the insurance companies aren’t eyeing your pensions and retirement funds – it’s just that statistically speaking, senior citizens are more susceptible to accidents. Insurance companies dictate premiums and deductibles based on which group of drivers you belong to, and sadly, retired individuals belong to these “high-risk” categories.
But fret not! Finding low-cost auto insurance for retired individuals isn’t that hard! Many times, retirees think that they must live with a higher premium – that is simply not true! Below, we’ll give you tips and tricks to getting the lowest insurance premiums for you retirees.
Understanding why premiums increase with age
Before we even reveal the secrets behind lower premiums for auto insurance for retired individuals, you’ll need to understand why premiums increase. As mentioned above, individuals that belong to “high-risk” groups are deemed to be more susceptible to accidents.
While it doesn’t really mean anything by itself, think about this: more accidents means that these individuals will be filing claims more often than members of lower-risk other groups. This means lower profits for insurance companies (because they need to give out claims so often to these groups). As such, insurance companies adjust to this higher incidence of claim-seeking by raising insurance premiums.
The following are the criteria that insurance companies look at to determine which group you belong to:
- Make of vehicle
- Age of vehicle
- Type of vehicle
- Years of driving experience
- Claims made
- Demerit points
Of all these factors, age is the most relevant one relating to auto insurance for retired individuals. Generally speaking, beyond a certain age (most insurance companies set this age at 35), you are deemed to have slower reflexes, thus increasing your risk of accidents. This thus increases premiums for retirees (unless, of course, you retired at a very young age).
Unfortunately, age isn’t something that we can control. Thus, to lower premiums for auto insurance for retired individuals, we must look at the other factors that we can control. This is the focus of this article: controlling factors that we can control to lower premiums.
Your vehicle should be the first thing you look at. By changing the make, model, and type of vehicle that you are driving, you can save a lot from premiums! There are some make and models that have problems identified by manufacturers or are involved in accidents at a higher rate than other models. For example, you’ll find that insuring a sports car commands a higher premium compared to normal family and sedan cars.
As such, this is one thing you must do to reduce your premiums: research! Find out which vehicle commands higher premiums under auto insurance, and stay clear of those vehicles!
Your type of vehicle also matter. As mentioned, sports cars are definitely more expensive than normal vehicles. Surprisingly, SUVs command higher premiums compared to normal vehicles – this is because their truck chassis has a higher center-of-gravity, making them prone to rolling over.
This is the next logical step to proceed to reduce your premiums for your auto insurance for retired individuals. As a retiree, you might have chalked up quite a lot of demerit points – take steps to mitigate them! This will mean driving safer to reduce your chances of getting even more demerit points.
Also, there are options to immediately remove demerit points attached to your driver’s license. In some states, taking defensive driving courses immediately removes 3-5 points from your license! Proceed to your state’s DMV website to learn more about these options.
Consider switching insurers
Often, many retirees think that there’s no point in switching insurers. “I have been with my auto insurer for so many years – it isn’t possible for other auto insurers to provide me better rates for my auto insurance for retired individuals, right?”
That’s a misconception! Often, there are specialist insurers that target this niche market – they’ll provide more lucrative rates compared to your previous auto insurer (take a look at AARP). Other insurance companies offer huge discounts to senior citizens. The bottom line is this: do your research online! There are plenty of auto insurance quotes online – go find them!
Finding cheaper auto insurance for retired individuals isn’t that hard – you just need to know where to look! Starting searching online and you will find yourself saving a lot more than you thought you would!