Even if you are a safe driver, accidents can happen. Acts of God, negligent pedestrians and/or drivers can cause accidents. Auto insurance is intended to protect you, other people on the road, as well as those on the streets.
Auto insurance is mandatory if you wish to operate a motor vehicle, and is needed in order to protect you and other people: you are essentially paying now in order to save money later. You will also be protected in the event that your car is burned, vandalized, or stolen.
Here, however, our focus will be on how auto insurance can benefit senior citizens in particular. Read on to learn more!
Types of Auto Insurance
Collision will protect you in the event that your car hits another object or is damaged by harsh weather conditions. For example, you may lose control due to an icy road, leading to an accident involving a nearby guardrail. Or you may lose control and flip your car while driving, causing massive damage. Such auto damages will be covered when you obtain collision coverage.
Comprehensive will cover most perils. For example, a strong gust of wind may cause a branch or a mailbox to fly into your windshield, causing severe damage. Or a vandal may break into your home and destroy your headlights.
However, comprehensive will not cover car upset or collision. It will also not cover any damages should your car be stolen by someone who lives with you. Plus, if your car mechanic accidentally damages your car while trying to fix it, comprehensive will not cover the damages.
Liability insurance is mandatory in most jurisdictions. If you cause an accident and another person is injured as a result then liability will cover their medical costs. It may also cover any damages caused by you in the event that you damage someone else’s property while driving.
Medical payments coverage will protect you, those riding with you, as well as family members who were driving the insured vehicle. Medical payments coverage will pay for most, if not all, medical expenses related to the injuries that you or your loved ones suffered while in your automobile.
Personal injury coverage provides similar coverage to medical payments coverage, except it may also cover additional expenses. Examples include income that was lost while recuperating from your injuries, as well as child care expenses.
Underinsured and uninsured motorist coverage will protect you in the event that your car is hit by an underinsured or uninsured driver. The coverage will cover your medical costs and may also cover your car repairs as well.
Tips to Lower Insurance Premiums for the Elderly
The benefits of good coverage are myriad. In some provinces or states, seniors will automatically get a discount as soon as they turn 65. However, some cities may require that seniors take a driving class in order to improve their driving skills while also learning about the effects of ageing on one’s driving abilities. Once you complete the class you will receive the discount.
Insurance rates will also fluctuate depending on the type of car that you wish to operate. Look for a car that is cheap to insure because it will not cost a lot to replace or repair. Cars that are cheap to insure tend to have a proven track record of safety, thanks to proven safety features like airbags and antilock brakes.
Basically, if you are retired, please let your insurance company know. They will reduce your premium once they discover that you no longer drive every day in order to go to work. It is also important to use all of the safety features that are built into your car. You may get a discount if you invest in anti-theft devices, such as vehicle tracking systems, disabling systems, and alarms.
You should also eliminate coverage that you no longer need. For example, you may not commute to work anymore because you have recently retired. If your car is currently being repaired by a mechanic then you may not need rental car coverage. If you no longer owe anything on your car loan then you don’t need gap insurance.
Factors Affecting Senior Auto Insurance Rates
The younger you are the more you will pay, as studies have found young drivers to be the worst drivers. However, seniors will also tend to be a bit risky because reflexes tend to decline as people age. The elderly are also more likely to suffer from an underlying health condition which will also cause their premiums to go up.
Location also matters as urban drivers will pay more for their auto insurance. Urban areas tend to suffer from more accidents, theft and congestion than rural areas, so premiums tend to be higher.
If you are a driver with a lot of experience under your belt then you will pay less. A good driver with an impeccable driving record will also pay less, as they have proven themselves to be a focused, responsible and law-abiding driver.
Your previous insurance coverage also matters. If your record shows at-fault claims then you may have to pay a surcharge. Plus, if you’ve had say, four claims in the last four years, then you will pay more, as your company will see you as a risk.
On top of this, some states and provinces may charge you more if you have a poor credit history, as studies have shown that those with poor credit scores are more likely to commit insurance fraud, file inflated claims and file more claims.
Benefits of Auto Insurance for Seniors
As a senior, you may be able to qualify for special coverage in the event that your car is damaged or stolen. You may be able to obtain liability protection in the event that someone wishes to sue you.
Seniors with a proven driving track record may qualify for lower insurance premiums and may also be offered exclusive insurance policy packages as soon as they turn 65. However, the main benefit of obtaining auto insurance is peace of mind.