Auto insurance is very important for anyone who drives a car and more so for slightly older people because they have higher chances of being involved in an accident and also because senior citizens have lower income so unless they have proper coverage they will find it difficult to cover the costs. Though it is a fact that older people tend to drive more safely yet the premium costs will rise as soon as the driver crosses the age of 50. But auto insurance being so important that one can’t avoid it, the best way is to follow certain tips which would help reduce the burden of premium.
Higher deductibles
When the items covered in an auto insurance policy is reduced, or when we increase the deductible items, then the insurer has lower liability in case of a claim. In such cases, the insurer is more than willing to reduce the premium. This looks like an easy way out, but one must not overdo it and increase the deductibles to such an extent that in case of a claim, we get peanuts as compared to the actual cost incurred. That will make the whole exercise pointless.
Volume discounts
A senior citizen who owns a car is also likely to own a house, and would most likely require health and life insurance too. If he negotiates well with a company which offers both life and non life insurance, then he can get all of these insured from the same company, in which case it would be possible to bargain for hefty discounts because of the volume of business the company is getting.
No frill auto insurance
Every insurance policy offers a variety of riders to the basic policy, in which additional coverage can be given in return for a higher premium. For example, in an auto insurance policy, the buyer has the option of adding on collision insurance to his policy for an additional premium. A senior citizen should cut away all the extra conditions from his policy so that he needs to pay only the basic premium amount.
A clean record
A good credit history helps a borrower to bargain for better interest rates, or higher loan amounts, or lower margin amounts. Similarly, a senior citizen with a clean driving record (no violations, no accidents, up to date documentations) can negotiate for a better deal with an insurance company on the basis of his good history in the matter of driving.
