10 Car Insurance Loopholes Most Seniors Don't Know About

Car insurance can be costly, and for seniors, the costs can be even higher. According to Progressive, older drivers are more likely to be severely injured in an accident, which can lead to greater costs for insurance companies. As a result, car insurance rates tend to increase for senior drivers.

That means saving money on car insurance is crucial when you're on a fixed income. And the good news? There are numerous options and strategies available for older Americans to save substantial amounts on their premiums. Here are 10 clever moves seniors can make to save big on auto insurance.

As you get older, you may qualify for discounts if you drive your car fewer than a certain number of miles every year. Certain companies offer explicit discounts for staying under a specific threshold.

From an insurance perspective, this reduces risk, as you're less likely to be involved in an accident. And with reduced wear and tear on your vehicle, this can also affect claims costs.

If you're retired and no longer commute to work daily, your total annual mileage could be significantly lower than it was before. Additionally, opting for a "pay-per-mile" policy could also help you save a significant amount of money.

There are many state-approved defensive driving courses you can take later in life that can lead to insurance discounts for those over a certain age. The AARP Smart Driver course, for example, is one of those.

If you pass it with flying colors, you could be eligible for a discount on your car insurance, and there are other mature driver programs you can take that can lower insurance premiums.

Keeping your driving skills sharp as you age is a critical factor in your safety and the safety of others; therefore, it makes sense that you would qualify for a discount.

Many insurance companies offer more than just auto coverage, so you can bundle multiple policies for a lower rate. Companies like State Farm, Progressive, and Farmers provide homeowners and renters insurance in addition to car coverage, so it makes sense to bundle those together and save.

According to AARP, State Farm reports that customers who bundle save $1,273 per year on average. Couple that with some of the other discounts on this list, and you can save a significant amount.

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Usage-based insurance calculates your rate by analyzing how often and how safely you drive, often by using a mobile app or plug-in device to analyze and measure your risk of getting in an accident.

This means that if you have a history of safe driving and don't put many miles on your car each month, some companies will reward you for your good behavior with discounted premiums. For example, Progressive has a "Snapshot" program that monitors and rewards drivers with good habits.

If you've been driving safely for decades, take advantage of doing so and leverage that into significant savings.

Members of AARP have exclusive access to discounted insurance coverage through their partners. Specific savings may vary, but according to the company, members could qualify for up to 10% off auto insurance premiums from The Hartford. Additionally, members may receive discounts for requesting a quote online or for bundling auto and home policies.

If you have an older vehicle, or if you're no longer commuting to work now that you're retired, it may make sense to drop comprehensive or collision coverage to reduce your premiums.

This is particularly the case if the cost of coverage exceeds the value of your vehicle. Figure out your annual insurance costs and then research the current value of your car through a service like Kelley Blue Book to make this determination.

Researching other insurance companies to see if you qualify for new customer pricing can set you up for success. Many companies offer free quotes, and after doing so, you can return to your current insurer to negotiate the best price, or consider switching entirely if you've found a better offer.

According to Consumer Reports, drivers who switched insurers in the past five years saved a median of $461 annually.

Cars equipped with certain safety features can net you insurance discounts, and equipping them could be a smart move for senior drivers, regardless.

For example, features like anti-lock brakes, anti-theft systems, and airbags reduce the likelihood of your vehicle causing damage to others in the event of an accident. This could result in lower repair costs for the insurance company, which means they want to incentivize drivers to operate safer vehicles.

Additionally, it's common for insurance companies to offer drivers rewards for having an accident-free driving history, usually for a set period of time. One example is Geico, which offers a 22% discount if you've been accident-free for at least one year.

Many companies incentivize customers to pay their premiums annually instead of monthly or quarterly. Paying your policy in full upfront could save you a substantial amount of money, and it can be combined with many of the other methods on this list to achieve even greater savings.

Although it may be challenging to accept the higher upfront cost, you will ultimately save money in the long run. According to Freeway Insurance, the average savings for a paid‑in‑full car insurance discount is 9%.

There are plenty of insurers who offer discounted rates for veterans or retired government employees (typically 10% to 15%). The discounts can even be combined with other offers on this list for even bigger savings.

If you or a family member has served in the military or worked for the government, consider programs like GEICO's military discount, which offers 15% off on certain car insurance coverages.

Car insurance doesn't have to be a burden for older Americans. If you use these smart money moves for car owners, you can reduce your premiums by a substantial amount.

According to MoneyGeek, the average annual car insurance premium for individuals 65 or older is $1,188 per year. And if you utilize the strategies listed above, you could potentially save hundreds of dollars on your insurance. That way, you can free up money to be spent elsewhere in your golden years.