10 Ways Seniors Can Cut Their Auto Insurance Premiums

Common sense dictates that older drivers should be rewarded for a lifetime of experience behind the wheel, but that's not always the case. Although seniors certainly land lower rates than teenage drivers, some insurance companies charge mature drivers more than drivers in their 30s or 40s.

Even though older drivers are involved in fewer accidents, rates may be steeper due to a higher probability of getting seriously hurt or dying if you're involved in an accident. No matter how unjust it is, that's the reality for some older drivers. Fortunately, there are at least 10 ways seniors can cut their premiums.

1. Leverage relationships

One advantage of having a few years on you is that you've met a fair number of people. If one of those people is your insurance agent, take advantage of the relationship by asking for help lowering your rate.

A busy agency can have hundreds of policyholders, and it's not always possible for an agent to review all those policies. Carve out time for a face-to-face meeting. Let the agent know that you want to lower your rates, and ask them to brainstorm ways you can make it happen. Your agent may have a trick or two up their sleeve that you haven't considered.

2. Choose your vehicle wisely

You're older now and may have a little more disposable income. If you want to spend some of that money on a smokin' ride, research how much your dream car will cost to insure. Generally, older, less expensive vehicles are cheaper to insure than newer, higher-performance cars.

3. Compare quotes

Some people are surprised by how much insurance rates vary depending on the insurer. Rather than assume that all insurance companies offer approximately the same rates, compare quotes from at least three separate insurance companies. Shopping around is the best way to discover a cheaper rate.

4. Remember, you're not married to your current insurer

At one time, businesses felt loyal toward their customers, and customers felt the same about the businesses they frequented. In fact, it wasn't uncommon for a person to purchase insurance from a specific company and remain a faithful customer of that company their entire life.

While loyalty can be a beautiful thing, it doesn't always pay off. If sticking with an insurer no longer benefits you, moving on is okay.

5. Revisit discounts

It may be a while since you asked your insurance company for a list of its potential discounts. Most insurers offer a variety of discounts that can help lower your premiums. The list may include discounts for safe driving, bundling your auto insurance with other policies, having a good credit score, or even holding a particular type of job.

6. Take a defensive driving course

One discount that may lower your rate substantially is having a defensive driving course under your belt. If you need help finding one, call your agent to learn if they have any recommendations.

Think of it like this: Taking a defensive driving course may be fun, allow you to meet new people, and score you an excellent policy discount.

7. Allow an electronic ride-along

Installing a telematics device in your car is a relatively new option. Essentially, the device records your driving habits for a certain period. During that period, the insurer can learn what kind of driver you are.

For example, are you someone who doesn't speed, comes to a complete stop at stop signs, and drives in a manner that fits the weather conditions? If so, your insurer will reward you with a lower rate.

8. Consider usage-based insurance

Now that you're a little older, do you drive fewer miles? If so, why pay the same rate you would pay if you were still commuting to work or running kids to soccer practice every afternoon?

If you don't drive as much as you once did, mention it to your agent. They may suggest the telematics device discussed above so they can gauge the average miles driven.

9. Review your policy

You know what's no fun? Reviewing a boring insurance policy. Still, it's an essential task if you're hoping to lower your rates. You may be paying for coverage you no longer require, like gap insurance. If your vehicle is very old, you may no longer require comprehensive coverage and can get by just fine with liability insurance only.

10. Raise your deductible

At one time, the big goal was to snag a policy with all the bells and whistles -- but at a great price. For many people, a policy with a low deductible was considered a real find.

The truth is, today's rates can make a low deductible feel like an expensive luxury. That's because the lower your deductible, the higher the premium. On the other hand, taking on more of the risk by raising your deductible will lower your premiums.

It's no secret that auto insurance rates have soared since the early days of the COVID-19 pandemic, and no one is immune from paying more. Fortunately, you now have at least 10 options for turning things around and pushing your rates to a more manageable level.