Q: Can you offer any tips to help seniors save on their auto insurance? I recently turned 70 and got hit with a 25 percent premium increase on my car insurance and am looking for ways to save.
A: As auto insurance rates across the country have continued to rise for all drivers, seniors can face an even bigger price hike once they reach their 70s and their driving skills begin to decline. Fortunately, there are ways to reduce your premiums. To find out what discounts may be available to you, contact your auto insurer and inquire about these options.
Increase your deductible
Paying a higher deductible could save you big on premiums. For example, raising your deductible from $500 to $1,000 can bring your annual premiums down, on average, by 15 to 20 percent.
Take a defensive driving course
Some insurance companies offer defensive driving discounts–between five and 15 percent–to drivers who take a refresher course to brush up on their safety skills. Organizations such as AARP (aarpdriversafety.org), AAA (aaa.com/stop) and the National Safety Council (nsc.org) provide these classes for around $20 to $30, and they can be taken online.
Adjust your coverage
If you’re driving an older vehicle, you may want to consider dropping collision and/or comprehensive coverage if your premium is more than 10 percent of the car’s value. Collision insurance covers damage to your car if you’re involved in a crash (or if you’re the victim of a hit-and-run) and comprehensive covers damage caused by acts of nature (such as storm damage), vandalism, theft or fire. But if you’re scaling back to liability coverage, make sure you have enough to pay for damages out of pocket if you’re in an accident or your car sustains damage due to weather, theft or another non-collision event.
Report your mileage
Most insurers offer discounts to customers who drive limited miles each year, which is usually beneficial to retirees who drive less because they don’t commute to work every day. These discounts usually kick in when your annual mileage drops below 7,500 or 10,000 depending on your provider.
Bundle policies
If your auto insurance policy is issued by a different company from the one insuring your home, call each insurer and ask if bundling the policies would be cheaper.
Sign up for driver monitoring
Some insurers offer discounts based on how and when you use your car. They will monitor things like your acceleration, braking habits, driving speeds and phone use, via smartphone app or a device that plugs into your car’s diagnostic port. Drivers can be rewarded anywhere from 10 to 30 percent for safe driving.
In addition, many insurance providers also offer discounts to drivers who do not have any violations or accidents for three or more years.
Ask about membership discounts
Many insurers offer discounts through professional associations, workers’ unions, large employers or membership organizations such as AAA, NARFE, AARP, etc. You could even qualify for savings based on the college you attended or the fraternity or sorority you belonged to decades ago.
Improve your credit
You may be able to lower your car insurance premium by paying your bills on time and reducing the amount of debt you carry. Insurers look at how their customers manage credit to get an idea of risk and to price policies. Better rates are given to those with good credit scores, typically 700 or above.
Comparison shop
To find out if your current premium is competitive with other insurers, shop around through insurance marketplace websites like TheZebra.com, Insurify.com, Lemonade.com or Policygenius.com. Or use an independent agent (see trustedchoice.com/agent) to help you compare.
Jim Miller is a contributor to the NBC Today show and author of The Savvy Senior book.
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23 May 2025
0 Commentshow to save on auto insurance
Q: Can you offer any tips to help seniors save on their auto insurance? I recently turned 70 and got hit with a 25 percent premium increase on my car insurance and am looking for ways to save.
A: As auto insurance rates across the country have continued to rise for all drivers, seniors can face an even bigger price hike once they reach their 70s and their driving skills begin to decline. Fortunately, there are ways to reduce your premiums. To find out what discounts may be available to you, contact your auto insurer and inquire about these options.
Increase your deductible
Paying a higher deductible could save you big on premiums. For example, raising your deductible from $500 to $1,000 can bring your annual premiums down, on average, by 15 to 20 percent.
Take a defensive driving course
Some insurance companies offer defensive driving discounts–between five and 15 percent–to drivers who take a refresher course to brush up on their safety skills. Organizations such as AARP (aarpdriversafety.org), AAA (aaa.com/stop) and the National Safety Council (nsc.org) provide these classes for around $20 to $30, and they can be taken online.
Adjust your coverage
If you’re driving an older vehicle, you may want to consider dropping collision and/or comprehensive coverage if your premium is more than 10 percent of the car’s value. Collision insurance covers damage to your car if you’re involved in a crash (or if you’re the victim of a hit-and-run) and comprehensive covers damage caused by acts of nature (such as storm damage), vandalism, theft or fire. But if you’re scaling back to liability coverage, make sure you have enough to pay for damages out of pocket if you’re in an accident or your car sustains damage due to weather, theft or another non-collision event.
Report your mileage
Most insurers offer discounts to customers who drive limited miles each year, which is usually beneficial to retirees who drive less because they don’t commute to work every day. These discounts usually kick in when your annual mileage drops below 7,500 or 10,000 depending on your provider.
Bundle policies
If your auto insurance policy is issued by a different company from the one insuring your home, call each insurer and ask if bundling the policies would be cheaper.
Sign up for driver monitoring
Some insurers offer discounts based on how and when you use your car. They will monitor things like your acceleration, braking habits, driving speeds and phone use, via smartphone app or a device that plugs into your car’s diagnostic port. Drivers can be rewarded anywhere from 10 to 30 percent for safe driving.
In addition, many insurance providers also offer discounts to drivers who do not have any violations or accidents for three or more years.
Ask about membership discounts
Many insurers offer discounts through professional associations, workers’ unions, large employers or membership organizations such as AAA, NARFE, AARP, etc. You could even qualify for savings based on the college you attended or the fraternity or sorority you belonged to decades ago.
Improve your credit
You may be able to lower your car insurance premium by paying your bills on time and reducing the amount of debt you carry. Insurers look at how their customers manage credit to get an idea of risk and to price policies. Better rates are given to those with good credit scores, typically 700 or above.
Comparison shop
To find out if your current premium is competitive with other insurers, shop around through insurance marketplace websites like TheZebra.com, Insurify.com, Lemonade.com or Policygenius.com. Or use an independent agent (see trustedchoice.com/agent) to help you compare.