Auto Insurance For Seniors - What You Need To Know

If I’m supposed to be wiser as I age, why can I never remember where I put my phone, wallet, or keys? At times, aging isn’t as great as it’s cracked up to be – but with the right insurance policy, at least you won’t have to worry about your car.

According to 2022 data from the Federal Highway Administration, about 22 percent of drivers on US roads are considered seniors. If you’re one of them, then your lifestyle, habits, and situation have likely changed considerably in the decades since you began driving.

Hopefully your auto insurance policy has followed along every step of the way.

AutoGuide.com thanks Toyota Insurance for sponsoring this insurance series

Your independent insurance agent is expert at finding the best policy for your specific needs and budget, and helping you bundle auto and home insurance to save you money. They can also help you navigate the particular changes and challenges that could affect your auto insurance policy as you age, including the virtually inevitable upward creep of premiums as you move into your seventies.

If you haven’t spoken to a agent in some time, you could be missing out on ways your auto insurance policy can save you money, work better for your lifestyle, and minimize stress and inconvenience in the event of a claim. So why not get in touch? 

Start the conversation by reviewing your current coverage against your current needs, ensuring you’re dropping unnecessary coverage that could be costing you money along the way.

Maybe you’ve got a seasonal car that’s stored for part of the year, an older car that no longer needs collision coverage, or a classic (or future classic) car or hot-rod. Your agent can help pinpoint the best insurance products and policies to maximize the value you’re getting for every dollar spent on your auto insurance policy.

If you’ve retired and are no longer commuting to work, chances are you’re driving fewer miles in a year than you used to. This is another great reason to discuss your specific needs with an agent, as low-mileage discounts may be available.

It’s a great idea to periodically review your deductibles too, ensuring they’re at comfortable levels. Same goes for your liability limits, though these may require some important additional consideration.

“You’ll want to make sure you purchase liability limits that are at least equal to your assets” explains Raymond Blackburn, an insurance expert at Toyota Insurance.

“You’re retired and you’ve probably built a comfortable nest egg for yourself. If you are liable for a serious auto accident, you want to make sure that your insurance limits are high enough that your nest egg is protected, and your policy limits will be sufficient to pay for a claimant’s property and medical expenses. Having insufficient limits exposes your hard-earned assets, so work carefully with your insurance agent.”

A quick call to your agent can help you save money when renting a car, too.

“Your auto insurance company will often provide coverage for cars that are rented for a short period of time, but many will not provide coverage for certain types of vehicles, like exotic cars or 15-passenger vans” explains Blackburn.

“When renting a car, be sure to come armed with that information prior to visiting the rental counter, otherwise you may be needlessly pressed into the rental company’s very expensive optional insurance.”

Your agent can walk you through available programs designed for safe and careful drivers willing to share their driving habits electronically with their insurance company via a smartphone connection. Driving habit data is transmitted automatically to the insurer for analysis, and prices are adjusted accordingly.

“Discounts of 20% or more are easy when you mind your speed, brake smoothly, and stay off the roads at night” explains Blackburn.

Ask your agent about options for rental car coverage and roadside assistance on your auto insurance policy, too. If you drive frequently or rely on your vehicle for work, appointments, or shopping, it can pay to have both, and your agent can lend advice based on your specific circumstances.

Roadside assistance may be included with (or added to) auto insurance policies, ensuring nation-wide help is just a phone call away in the case of a setback on the road. If an insurance claim is required, having rental car coverage means you’re back at the wheel much more quickly (and with much less hassle) while your car is being repaired.