understanding your insurance policy

understanding your insurance policy

Money-Saving Strategies For Seniors Who Need Auto Insurance

by Tuĝba Van Den Heijkant

Seniors benefit from some of the lowest auto insurance rates, and they can use strategies to reduce their premiums even further. If you're a senior, one of these money-saving strategies could help you pay less for insurance each month.

Take Advantage of Low-Mileage Reductions

Many insurance companies will offer a rate reduction if you drive below a certain number of miles each year, and a lot of seniors' annual mileages are below insurers' marks. If you're retired and don't have to commute anymore, how many miles you drive annually is likely well-below average. You could use this to get your rate below average too.

Check for a Safe Driver Reduction

Some insurance companies will also offer a rate reduction if you're a safe driver and are willing to prove it. If you allow an insurer to install a monitor on your car that tracks acceleration, deceleration, and mileage, you might qualify for a discount as long as you don't drive too aggressively. 

The exact requirements for this discount vary from one insurance company to the next, and you won't get any such discount if you exceed the permitted metrics regularly. Most seniors are naturally careful drivers, though, and you shouldn't have a problem staying within the allowed metrics as long as you aren't too fast when behind the wheel.

Utilize a Multi-Policy Discount

Multi-policy discounts are offered by virtually all insurance companies if you purchase more than one policy from them, and many drivers combine their auto insurance and homeowners insurance to get this discount. Even if you no longer or never owned a home, however, you can still get this discount by combining auto insurance and another policy.

In particular, you can still qualify for a multi-policy discount if you have condo or renters insurance. Should you need to downsize during your senior years into a smaller or leased space, still make sure you have either condo or renters insurance, and also make sure you still utilize the multi-policy discount.

Switch to Comprehensive-Only Policies at Times

If you're a snowbird and have a car at each of your two residences, make sure you only insure the vehicle you're currently using with a complete insurance policy. Whichever vehicle you aren't using can be covered by a more affordable comprehensive-only policy while the vehicle isn't on the road. 

This will reduce your premium for an unused vehicle when you aren't wherever the vehicle is located, and the vehicle will still be protected against break-ins and vandalism. Reach out to a professional who provides auto insurance to learn more. 


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.