Auto insurance discouts
Dear Savvy Senior,
I’ve read that many car insurance companies offer a variety of discounts to older drivers when they retire or reach a certain age. What can you tell me about this?
Most auto insurance companies offer policyholders a wide variety of discounts, many of which can benefit retirees. Auto insurers love older drivers because they’re experienced behind the wheel and they drive less than younger age groups, which makes them a lower risk for accidents and a safer bet for insurance companies.
While discounts will vary by insurer, many of these benefits can reduce your overall premium by 15 to 20 percent or more, and you are usually allowed to combine discounts to increase your savings, though total discounts are often capped at around 25 percent.
To find out what discounts may be available to you, contact your auto insurer and inquire about these benefits, and any others that may benefit you.
Age discount: Many auto insurance companies offer a general “senior” discount that will reduce your premium just because you’ve reached a specific age. The actual name and amount of the discount will vary by insurer.
Allstate, for example, provides a “senior adult discount” of up to 10 percent to drivers who are at least 55 years old and aren’t actively looking for full-time work. And Liberty Mutual offers a “newly retired discount” to drivers who reach that employment milestone, regardless of age.
Low mileage discount: Most insurers offer discounts to customers who drive limited miles each year, which is often beneficial to retirees who drive less because they don’t commute to work every day. The fewer miles you drive, the lower your odds of getting into an accident.
The parameters of low mileage differ by insurer, but generally about a 10 percent discount is available for driving less than 5,000 to 8,000 miles each year, although smaller discounts may also be available to seniors who drive more than this but less than 15,000.
Drivers Ed discount: Many states require insurance companies to offer “defensive-driving” discounts to drivers who take a refresher course to brush up on their safety skills. The discounts vary usually ranging between 5 and 15 percent.
Driver safety courses are inexpensive, usually costing around $20 to $30 and can often be taken in a classroom or online. To locate a class contact your local AAA (aaa.com), which operates a Driver Improvement Course for seniors, or AARP (aarp.org/driversafety, 888-227-7669), which offers the Smart Driver Course to members and non-members.
Club member discount: Insurers offer discounts to members of clubs and associations with which they have partnered. These could include professional associations, workers’ unions, large employers or membership organizations such as AAA, the National Active and Retired Federal Employees Association, the Seniors Coalition, AARP, etc. You could even qualify for savings based on the college you attended or the fraternity or sorority you belonged to decades ago.
Safe driving discount: Many insurance providers now offer discounts based on how and when you use your car. To do this, they would place a diagnostic device in your car that transmits wireless data on how you drive (including how fast you’re going and how hard you’re braking), when you drive and how much you drive. Drivers are rewarded for safe driving, low mileage and for not driving late at night.
In addition, many insurance providers also offer discounts to drivers who do not have any violations or accidents for three or more years.
Jim Miller is a contributor to the NBC “Today” show and author of The Savvy Senior. Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org.
Your Opinions and Comments
Be the first to comment on this story!
You must be logged in to post a comment.
South Texas Living Archives
A creepy Halloween party appetizer (October 19, 2016)
Applying for Social Security (October 19, 2016)
Chili Cook-off to benefit Wilson County youth (October 19, 2016)
DRT joins Heritage Music Festival (October 19, 2016)
DRT to meet Oct. 24 in Kerrville (October 19, 2016)
Enjoy Harvest Festival in Marion (October 19, 2016)
Enter Pecan Bake Show (October 19, 2016)
Little Golden Books (October 19, 2016)
Make plans for Halloween fun and fall fests (October 19, 2016)
Meeting the needs of the community: St. Vincent de Paul (October 19, 2016)
R&B legend opens Carver season Oct. 29 (October 19, 2016)
Readers share their spooky tales, part two (October 19, 2016)
Road Runners plan Oct. 22 group run (October 19, 2016)
See country legends Oct. 22 (October 19, 2016)
Try your hand at square dancing (October 19, 2016)
Turn yard waste into gardener’s gold (October 19, 2016)
Baptist church to ring in 100 years (October 12, 2016)
Church plans Junk and Treasure Sale (October 12, 2016)
Comal Country Music Show is Oct. 18 (October 12, 2016)
Davy Crockett (October 12, 2016)
Enjoy fried chicken in Poth Oct. 23 (October 12, 2016)
Enjoy this flashy winter resident (October 12, 2016)
Join in the 2016 Rosary Crusade (October 12, 2016)
National Charity League plans celebration (October 12, 2016)
New program increases student knowledge of E-cigarette dangers (October 12, 2016)
Play bunco in La Vernia Oct. 22 (October 12, 2016)
Pondering a poignant letter from the past (October 12, 2016)
Save the date for Oct. 22 March for Life (October 12, 2016)
Should you redeem old savings bonds? (October 12, 2016)
Show Barn Cook-off approaching (October 12, 2016)
Sutherland Springs Old Town Day (October 12, 2016)
The business of aging grows more complex (October 12, 2016)
Try your luck at China Grove Lions Club Casino Night (October 12, 2016)
Atascosa County Craft Show seeks vendors (October 5, 2016)
Beautify your landscape with cacti (October 5, 2016)
Experience Oktoberfest in San Antonio (October 5, 2016)
Gilded peanuts and golden memories — recalling past Floresville Peanut Festivals (October 5, 2016)
Japan Fest set for Oct. 16 (October 5, 2016)
Meal service delivery options for seniors who don’t cook (October 5, 2016)
Oktoberfest comes to Floresville Oct. 15 (October 5, 2016)
Past Pirate champions will never be forgotten (October 5, 2016)
Readers share their ‘spooky’ tales (October 5, 2016)
Sacred Springs PowWow (October 5, 2016)
Shorter teapot (October 5, 2016)
Sinatra tribute comes to Kerrville (October 5, 2016)
Stockdale librarian updates Blue Bonnet Club members (October 5, 2016)
Sunnyside 4-H Bake Sale (October 5, 2016)
Time for turkey in Cestohowa (October 5, 2016)