Senior drivers pay an average of $1,780 per year for car insurance. That’s around $148 per month. The rates are even higher for those over 60 and continue to rise with age.
Depending on where you live, you may be eligible for government-mandated auto insurance discounts. Most states, including California, require insurance companies to offer such discounts to senior drivers.
These policies are meant to ease the financial burden on an already vulnerable population. The value of the discount varies by state, but you can expect to save anywhere between 5% and 20%.
What Are the Government-Mandated Auto Insurance Discounts for Seniors?
Auto insurance premiums are lowest for drivers over 50 but increase after age 60.
For example, a 55-year-old driver pays around $1,298 per year on car insurance. By comparison, a 62-year-old driver can expect to pay $1,315 per year, while a 70-year-old driver must shell out approximately $1,523.
Other factors, such as a poor driving record or long claims history, can further increase car insurance rates. Your gender, location, marital status, and type of vehicle come into play, too.
Given these aspects, 34 states and the District of Columbia have introduced mandatory car insurance discounts for senior drivers. Qualifying applicants pay 5% to 20% less on their monthly premiums.
These are different from other auto insurance discounts for seniors. You may qualify for government-mandated auto insurance discounts and standard discounts depending on your situation.
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Who Can Apply for a Mandatory Senior Discount?
Eligibility criteria vary from state to state, but generally, applicants must be at least 55 years old and complete a driver safety course.
For instance, Arkansas requires insurance providers to offer mandatory discounts to seniors over the age of 55. Applicants must also take a driver safety course approved by the Arkansas Offices of Driver Services.
Similarly, drivers based in Pennsylvania may receive a 5% discount on car insurance. To qualify, they must be at least 55 years old and have completed a driver improvement course.
These courses usually take four to eight hours and must be completed within a specific time frame, such as within 30 days of registration. Some, but not all states, allow drivers to complete the training online.
A good example is the Mature Traffic Program offered by the Traffic Safety Institute. Currently, it’s available to California drivers and can be completed online. Per California Insurance Code 11628.3, this kind of program allows drivers age 55 or older to lower their premiums by 5% to 15%. That’s up to $300 per year based on the current auto insurance rates.
How to Apply for Government-Mandated Car Insurance Discounts
The application process is quite straightforward. Simply follow these steps:
- Contact your insurance provider: Ask your insurer whether you must complete a driver safety course online or in person. See if they have any specific requirements.
- Sign up for a mature driver safety course: Find a training program approved in your state. Ask about the course hours, curriculum, price, and registration process. Expect to pay around $10 to $30 for online courses and slightly more for in-person courses.
- Submit proof of completion: Some schools will send a certificate of completion directly to your insurance provider. Others will hand it out to you, in which case you’ll need to send it to your insurer by mail or electronically.
Once these steps are completed, your insurance provider will apply the discount to your premiums.
Other Ways to Lower Your Car Insurance Premiums
Navigating the complexities of car insurance premiums can often feel like a balancing act, especially when trying to secure the most comprehensive coverage at an affordable rate. While government-mandated discounts offer some relief in certain states, the reality is that many drivers are left searching for additional ways to reduce their insurance costs. Fortunately, a variety of discounts are available that cater to different aspects of your driving profile and vehicle features.
Whether you’re a seasoned motorist or a newcomer to the roads, understanding the spectrum of discounts can significantly lower your insurance expenses without compromising on coverage. Here are some valuable discounts that senior drivers, as well as those from other demographics, can leverage:
- Loyalty Discounts: For drivers who have stayed with the same insurance provider for several years, loyalty can indeed pay off. Insurers often reward long-term customers with reduced rates as a token of appreciation for their continued business.
- Low Mileage Discounts: If you’re someone who doesn’t drive often, you might qualify for low mileage discounts. Insurers consider drivers who spend less time on the road to be at a lower risk of accidents, which can translate into lower premiums.
- Good Driver Discounts: Maintaining a clean driving record free of accidents and traffic violations can lead to significant savings on your insurance premiums. Insurers view responsible drivers as lower risks and offer discounts as an incentive.
- Defensive Driver Discounts: Completing a defensive driving course can not only sharpen your driving skills but also qualify you for discounts. Many insurance companies value the commitment to safe driving and offer savings to those who proactively seek education.
- Multi-Policy Discounts: Bundling multiple insurance policies, such as home and auto insurance, with the same company can lead to discounts across the board. This approach simplifies your insurance management while reducing overall costs.
- Multi-Vehicle Discounts: Insuring more than one vehicle with the same provider can unlock savings, making it a smart choice for families with multiple drivers.
- New Car Discounts: Modern vehicles equipped with advanced safety features and technology are often cheaper to insure. Insurers recognize the reduced risk of accidents and theft, offering lower rates as a result.
- Vehicle Safety Discounts: Features like anti-lock brakes, airbags, and anti-theft systems not only enhance your safety but can also lower your insurance rates. It’s worth checking with your provider about discounts for specific safety features.
- Early Bird Discounts: Renewing your policy before it expires can sometimes fetch you a discount. Insurance companies appreciate the punctuality and the assurance of continued patronage.
- Pay-in-Full Discounts: Paying your annual premium in one lump sum rather than in monthly installments can lead to savings. Many insurers offer discounts for upfront payments.
- Military Discounts: Active-duty military personnel, veterans, and their families often qualify for special insurance discounts as a mark of respect for their service.
For example, new cars are considered safer than older vehicles. So, if you’ve just bought a new car, it may cost less to insure it.
As mentioned earlier, drivers can qualify for multiple discounts—but up to a certain amount, depending on the insurance provider.
It’s also worth mentioning that most insurers won’t tell you about the available discounts unless you ask about them. This applies to government-mandated car insurance discounts, too. You should also note that a traffic ticket can affect your insurance rates – so keep your driving record clean!
For starters, enroll in a mature driver program and take it from there. Our course is approved by the California Department of Motor Vehicles (DMV) and can bring you an auto insurance discount of up to 15%. Plus, you don’t have to pay until you pass the course.
