There are benefits to growing older! At this life stage, you may be able to take advantage of several age-related discounts.
- For example, as a mature driver (typically age 55 – 70), you may be eligible for discounts. After age 70, the incidence of serious accidents escalates significantly, so the discounts might cease.
- Discounts may also be available for seniors who limit the amount of driving they do – for example, to less than 7,500 miles per year – or agree to only drive during daylight hours. When you retire or change jobs and work or stay closer to home – and, therefore, need to drive less – you should inform your insurance company. You may be able to get lower rates.
- If you have worked for the same employer for many years, let your insurer know. Those who show stability in their employment may qualify for an auto premium discount.
- If your children have turned 18, left home and are regularly not driving your vehicle, alert your insurance company, as your auto premiums may decrease.
- Consider taking a senior driving refresher course, such as AARP’s 55Alive or a program run by the National Institute of Highway Safety or AAA. Participation in these programs may help you qualify for a discount.
- Since your net worth may still be growing, or is at its highest at this stage of your life, consider whether it makes sense to purchase an “umbrella policy” to raise your auto liability coverage, for example to $1 million, in order to protect your assets.
- If you are driving an older vehicle not worth much in current book value, consider dropping collision insurance. With older cars, the cost of collision coverage can exceed the value of the car.
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