Car Insurance for People Over 50
- Whether or not your car insurance will be more affordable once you reach age 50 will depend on various factors. An insurance company considers the number of miles you drive. Unless you plan to do a lot of road travel, you may not put many miles on your car after you retire. If you've had a safe driving record, insurers are more likely to offer you lower rates based on your long driving history. Although you may pay lower rates for a few years, auto insurance coverage actually begins to rise again after age 70, when insurance companies see you as a higher risk.
- Qualifying for auto insurance discounts can lower the cost of your car insurance and make it more affordable. The types of discounts offered by insurance companies vary, although most companies offer a discount if you insure more than one vehicle. A multiple policy discount is another way you can save by carrying your home, auto and life insurance policies with the same company. Driving a vehicle equipped with airbags, anti-lock brakes and anti-theft devices usually qualifies you for additional discounts, regardless of age.
- Completing a defensive driving course is another way to save money on your auto insurance. You can take a class and qualify for a discount even if you haven't been involved in a recent auto accident. The AARP Driver Safety Program, geared toward older drivers, teaches defensive driving techniques in addition to adjusting driver behavior associated with age-related physical and cognitive changes. Emphasis is placed on vision and motor response, as these areas often are affected when people grow older. Since the program was first developed, many states now require insurance companies to offer discounts to drivers who complete the course. The course is offered in either a classroom setting or online.
- Staying with the same insurance company for many years may earn you a customer loyalty discount. But even if you get a discount that saves you money, you should still periodically shop other insurance companies to compare rates. What may seem like a discount can still cost you more money in premiums than the regular rates another company might charge. Keep in mind, too, that many companies won't offer you a discount unless you ask. Make it a habit to check the rates offered by three or four other insurers at least every couple of years. If another company offers you a lower rate, ask your current insurer if it can do the same.
