Drivers between the ages of 50 and 70 often receive
preferred automotive insurance rates because they are viewed as safer behind
the wheel than teenage drivers and people in their 20s. Seniors, however, are
viewed as more of a risk, and insurance rates tend to rise starting at age 70.
Eventually, older drivers are required to renew their
license more frequently – usually every five years – and retake a driver's test
to renew. The age when this becomes a requirement varies from state to state.
Californians, for example, must begin retaking a driver's test at age 70. In
Illinois, the age is 75.
While licensing and insurance become more cumbersome for
people as they grow older, the important thing is that drivers continue to have
adequate insurance and get favorable rates. The federal Department of Motor
Vehicles (DMV) offers helpful tips and advice on how seniors can get good
automotive insurance rates. Here is a list of five of the best insurance
providers for retirees and senior citizens in the U.S.
1. AARP
Formerly know as the American Association of Retired
Persons, AARP actually runs its own automotive insurance program to help
retirees and seniors who are living on a fixed income. AARP has teamed up with
the Hartford Insurance Company to provide discounted auto insurance to its
members. Discounts available through AARP's automotive insurance program take
into consideration whether you are married, live in a low crime area and have a
good driving record. Savings come in the form of low premiums, a disappearing
deductible and accident forgiveness.
AARP's automotive insurance program provides you with the
ability to renew throughout your lifetime as long as you retain a valid
driver's license, and rates are locked in for 12-month periods. To qualify, you
must be over age 50. In addition, AARP runs a driver safety program in 35
states; in many of them it can be completed online. Completion of the course
earns you further discounts on your auto insurance.
2. AAA
The American Automobile Association (AAA) not only provides
car insurance, but it also has a wealth of resources available to retirees and
seniors. On the car insurance front, AAA members automatically get a 7%
discount on their rate. There are other discounts available to if you're age 50
or older, including those for having an alarm system on your car and a good
driving record.
The real benefits with AAA, however, are the company's
driving resources for seniors, which include a Driver Improvement Course, a
list of smart features for older drivers and information on the licensing laws
and requirements in various states. A Senior Driving Expo provides information
and resources designed to help older drivers continue driving safely for as
long as possible. Many of these resources, like the Driver Improvement Courses,
will help to lower car insurance rates even further.
3. GEICO
GEICO provides a car insurance program for older drivers (50
and over) called the "Prime Time contract," though it isn't available
in every state (check the GEICO website). It offers preferred and discounted
car insurance rates to drivers who are 50 or older, have not had any motor
vehicle accidents or violations in the previous three years, do not use their
car for business purposes, and don't let anyone under age 25 operate their car.
GEICO offers additional discounts to retired members of the
military and federal government employees, as well as to those who have had a
clean driving record for more than five years and have completed a defensive
driving course.
4. Allstate
In addition to the usual discounts for being 55 or older and
having a clean driving record, Allstate has some unique ways to save on
insurance. If you are 55 and not actively seeking full-time employment, for
instance, you can automatically save 10% on your auto insurance rate.
The company also offers discounts if you drive fewer miles a
year than the national average, and if your car is economy size and has
anti-lock brakes and an alarm system. Pay your automotive policy upfront in
full each year, and you qualify for a further 10% reduction on your insurance
premium.
5. USAA
For members of the U.S. military, it pays to sign up and
stay with the United Services Automobile Association (USAA) through retirement.
USAA offers great discounts and rates on automotive insurance to serving
military members and veterans, including guaranteed auto insurance coverage for
as long as you are able to drive, affordable roadside assistance packages and
additional discounts based on a safe driving record and length of service in
the military. Plus, members can take their auto insurance with them should they
move outside the U.S.