Ways Seniors Get Cheap Car Insurance

Once you reach a certain age, you are rewarded with discounts at some stores, restaurants, and entertainment venues. And, in some instances, you may be eligible for discounts on your auto insurance. Discounts are just one way seniors are able to get cheap car insurance.


Drivers who are at least 50 years old and members of AARP are eligible for discounts from participating insurance companies. The exact amount of the discounts varies depending on the insurance provider's guidelines. Keep in mind the age at which you qualify for the discounts is set by the insurance company. In other words, just because you are eligible to join AARP at 50 does not mean you automatically qualify for discounts offered to seniors if the discounts are contingent upon you meeting age requirements.

Be a Loyal Customer

Staying with the same insurance company over a long period of time and maintaining a clean driving record can result in as much as 10% off your premiums when you reach a specific age. You can find out in advance the types of discounts your insurance company offers to older drivers, especially those who have been loyal.

Drop Medical Coverage

Seniors who have their own health insurance or become eligible for Medicare may want to drop the medical coverage they have through their auto insurance company. You will save money by not having to pay for duplicate coverage. If you are involved in a car accident and are injured, your personal health insurance will cover your medical bills.

Sign Up for Driving Refresher Courses

To qualify for certain discounts, insurance companies may require seniors to complete a refresher course on safe driving to demonstrate you are not a risk to the company. Some companies offer a stand-alone discount for senior drivers who complete safe driving classes. This means you can get a discount just for completing the classes.

Seniors have many opportunities to get cheap car insurance. Taking advantage of as many as possible can result in major cost savings. Cheap car insurance just requires knowing where those opportunities await.

Get the lowest auto insurance rates on policies that offer the best protection for busines

Whether you are a home-based business or a storefront business with a handful of employees, you still need auto insurance on cars you use for company business. When you seek cheap auto insurance, you will be asked if the car is for personal or commercial use. Major insurance companies offer policies for both. Business car insurance provides further protection of company assets in case of an accident.

What to Expect

You will need to supply different information to get a company vehicle insured. The application and approval process can take a bit more time because you may have to provide certain documents to the insurance company. Consider all of your options to make sure you have sufficient coverage. You can still get low rates but those should be secondary to excellent coverage so risk to your company is minimized.

Type of Business

Part of the application process is a detailing of business and daily driving activities. Insurance companies are interested in the amount of business-related mileage the car is likely to accumulate. If you are a home-based business, you will need to carefully document how your personal car is used for business purposes. There are several primary types of auto insurance for small businesses that are based on usage of the vehicle.

Business Credit History

Businesses have credit ratings just like individuals. A poor corporate credit score can cause your insurance rates to increase. You need to be as responsible with your business finances as you are with your personal ones. Pay your vendors on time, do not default on business loans, and maintain manageable lines of credit. Check your business credit through major credit bureaus like Experian.

Discount Opportunities

Two main types of discounts you can get associated with business car insurance is the safe driving discount and reductions for security features. If your company is located in a high-crime neighborhood, you should have a secure place to park your car. An alarm on your car can help you get lower rates. Each year your company vehicle is accident-free, you have yet another opportunity to get cheap auto insurance.

Get the cheapest car insurance despite a bad credit score

Trying to get auto insurance when you have bad credit can be frustrating. Credit scores are major risk factors used by insurance companies to calculate annual premiums. You can still get the cheapest car insurance by addressing your credit situation.

Explain Mitigating Circumstances

Sometimes things are simply beyond your control. For example, if you are recovering from a major illness, you may have accrued medical expenses beyond what your health insurance paid for and your credit score has dropped as a result. Your score will continue to be poor until your debts are addressed. In the meantime, you can explain your situation to the insurance company. And if you have always paid your insurance premiums on time, offer documentation that proves that to further mitigate your situation. Your insurance company may be willing to give you a chance with a lower rate.

Verify Credit Scores

Remember that you actually have three credit scores. Make sure there is no significant disparity between them. While they may not be exactly the same, they should not be extremely different. Find out if the insurance company uses only one of the scores and, if so, which one. If they use all three, ask exactly how that is done.

Improve Your Credit Rating

Even if you have errors on your credit report, it is not possible to correct those overnight. You will need some time to improve your score. This entails working with creditors to correct errors, setup payment plans, and otherwise pay down debt. As you begin to do this, your credit score will slowly improve. Do everything you can to pay your bills on time. If you are going to be late with a payment, always contact your creditor so they do not report you to the credit bureaus.

Consider a Bad Credit Insurer

If you have to resort to one of these insurance companies, do your due diligence to make sure the company is credible. These types of insurance providers are not available everywhere so you will need to do some research to find the cheapest car insurance offered in your area.

How Claims Impact Auto Insurance Rates

Everybody wants to pay the lowest auto insurance premiums possible. Many people do not realize that previous claims affect premiums. There are three distinct claim factors that determine insurance rates. Knowing about these factors can help you decide which claims are worth submitting should the need arise in the future.

Driving Record

Your driving history is a major factor that influences insurance rates after you submit a claim. If you have a history of causing accidents or moving violations such as speeding, your post-claim premiums will be higher. Certain insurance companies offer "accident forgiveness" to drivers involved in minor accidents who otherwise have a clean driving record. Your rates will still increase but not as much as they could.

Each state has its own rating system that insurance companies must follow when setting rates. Risk is the primary determinant that insurance providers measure all factors against. Each time you submit a claim, you pose a higher risk to be insured. More risk means higher costs. Insurance companies must pay for a claims adjuster to review your claim. And claims adjusters have costs such as travel and supplies. Costs associated with claims are covered by you through higher premiums.

Vehicle Value

One of the reasons insurance companies ask for the make and model of your vehicle is to ascertain potential costs if you submit a claim for damage or loss. Insurance providers use the risk assessment information provided by Insurance Services Offices, Inc. (ISO) in rate calculations. ISO assigns an ISO symbol to every type of domestic and imported vehicle to indicate the vehicle's value in terms of replacement and repairs.

Vehicles with high ISO symbols will cause your insurance premiums to be higher. And if you submit a claim on such a vehicle, your future premiums will be even higher. ISO symbol values are built-in to the insurance company's rate calculation - it is not something insurance agents have discretion to determine on an individual basis.

Fraud and Scams

Even if you do not commit insurance fraud yourself, your insurance premiums are affected by the fraud perpetrated by other auto insurance customers. Insurance companies lose billions of dollars annually to fraudulent claims - and those costs are passed on to you. The average auto insurance premium can increase several hundred dollars each year because of fraud.

Do what you can to mitigate these claim factors. And do not forget that you can always shop around for other auto insuranceauto insurance options!

Cheap Car Insurance for Teen Drivers

It may seem challenging to get insurance for your teenager, but it is not impossible. You should expect to pay more for your teen's insurance since that age group has the highest rates in general. However, there are ways to get cheap car insurance for young drivers when you consider the factors you and your teen have control over.

Type of Vehicle

Teenagers typically want a brand new, not to mention cool, car. But the type of car they drive plays a big part in the amount of money they will be required to pay for coverage. You can get your teen driver a vehicle with a high safety rating to score lower insurance rates. The more safety features the vehicle has, the lower your rates will be. If you are adding your teen to your current policy for the family vehicle, you can expect an increase of about $800.

Driver Education Classes

Rate reductions are given to teen drivers who successfully complete driver training programs. Not all states require driver education for teens to get their driver's license. However, insurance companies are willing to reward teens who finish such classes because they are more likely to drive safely as a result. These classes can help teens learn to drive defensively and safely for different road conditions.

Academic Excellence

Teens that excel in school may be eligible to receive "good student" discounts. Most major insurance companies offer this particular discount, making the assumption that teens with good grades are more responsible and will be involved in fewer accidents and other moving violations. The exact grade point average (GPA) needed as well as the discount amount varies by insurance provider.

Driving Record

Maintaining a clean driving history may result in cheap auto insurance after a year or two. This is something teen drivers should strive for. Insurance companies begin with the assumption that your teen driver is a high-risk driver. Fortunately, it is possible to prove them wrong by driving safely, avoiding speeding tickets, and not getting involved in accidents. This is a surefire way to get cheap car insurance.

Looking at changing policies to get the cheapest car insurance

While customer loyalty is commendable, it may not always be in your best interest. A case in point is your auto insurance. To get the cheapest car insurance, you may need to switch to another insurance company. Sometimes insurance companies are limited in what they can offer customers. You may not qualify for lower rates with your current provider. Use the following recommendations to select your new policy.

Do Not Allow Coverage to Lapse

Be sure you continue to pay for your current policy while researching your options for a new one. You will save money by having a current policy in place when you switch providers. Check your policy to see when it is set to expire so you do not have any time you are without insurance as the penalties for such can be significant. Also, you want to be legally insured while searching for a new policy. Always activate the new one before cancelling the old policy.

Review Your Credit Score

Prospective insurance companies can tell that are more likely to pay your premiums on the date they are due if you have a good credit history. You will be able to get lower rates with a good credit score. If you believe your credit score is wrong, you should address this prior to seeking a new policy.

Shop Around for New Policy

You can get multiple free quotes online from many different major insurance companies by using an aggregator site. This type of website should clearly state which insurance companies they work with so you know what to expect. Review each offer carefully to determine which ones might offer the best coverage at the lowest rates. You are under no obligation to actually purchase a policy.

Read Reviews on the Insurance Company

If you do select a policy, look for information on customer satisfaction reviews. You can check the company out at the Better Business Bureau and your state Attorney General's website. Read what past and current customers have to say about them. Do your research so you know you are getting a really cheap car insurance from a quality insurance company.

Keep car insurance quotes low by preventing theft of your vehicle

Sadly the world is dangerous and the rate of vehicle theft remains high. Until US states make policing a better-funded operation, most thieves have a good chance of getting away undetected. With claims rising in value, each new round of car insurance quotes comes out with higher rates for comprehensive cover. To encourage you to take action, insurers now offer discounts if you instal anti-theft devices. If the police cannot protect you, you must protect yourself. It starts with a change of mindset. Instead of a casual approach to security, you must routinely take the key out of the ignition and lock the doors whenever you leave the vehicle. If you park in a city, choose somewhere well-lit with as many people passing as possible. Overnight, always find somewhere secure to keep it.

Now as to these devices, each car insurance company will have its own list. Before you spend any money, get details to ensure you will be eligible for the discount. We start with noise-makers. Any alarm is a deterrent because it attracts attention. Now add in devices to slow down would-be thieves. Put locks on the steering wheel or brake pedal, disable the starter or the fuel pump. The longer it will take the thief to drive the car away, the better the chance he or she will be caught. But if your best efforts fail, the vehicle can be tracked with a GPS transmitter. Only really professional thieves take the time and trouble to locate the tracking device and disable it. This gives you a very good chance of recovering your vehicle. A final thought is having the VINs etched on to the windows. It costs thieves too much to replace the windows if they want to resell the vehicle with a false identity.

Keep your car insurance company up-to-date with all the changes and additions to your vehicle. The more you show yourself responsible and determined to prevent a claim being made for theft, the bigger the discount you will earn.