Retired Couple with CarAuto insurance costs fluctuate throughout a driver’s lifetime. In general, rates decrease as you get older and gain experience on the road. As long as you maintain safe driving habits, you can expect your rates to slowly drop with each passing year. Even drivers with a few accidents under their belts can enjoy low rates as they age as long as no additional accidents occur.

One of the biggest insurance discounts that adults will experience happens as they approach retirement age. Many insurance companies offer a discount to drivers once they turn 55, and this discount can be bundled with other discounts to help you earn the lowest possible premiums. If you’re approaching retirement and haven’t noticed a decrease in your premiums, it may be time to start shopping for a new insurance company.

Why Companies Offer Discounts to Older Drivers

Statistically, middle-aged drivers and those nearing retirement are the safest drivers. They have years of driving experience behind them, which enables them to make smart choices when confronted with road hazards, poor drivers or inclement weather. They may also have several years of safe driving history already on file with the insurance company. A person who is 50 years old with a single accident will pay much lower premiums than a person who is 20 years old with a single accident.

Additionally, older drivers generally have better or more established credit than younger drivers. Credit scores are used by insurance companies to assess a driver’s financial responsibility, and they can heavily influence car insurance premiums. People with poor credit may have high insurance costs even if their driving records are generally good. Older drivers are also more likely to own houses or be married, both of which can result in discounts.

Finally, insurance companies offer drivers incentives for switching companies. As most insurance companies are not eager to court young drivers, they must stir up new business by luring established drivers from their companies. This means that the best discounts are offered to older drivers.

What Discounts Can I Get as a Driver Over 50?

The first discount you can receive is the most obvious. When you turn 55, your auto insurance company may automatically lower your rates. This will be similar to the rate reduction you most likely received after turning 25. The insurance company may not widely advertise that this change happened, so you may need to look carefully at your bill to see whether the rates decreased after your birthday.

If you are a member of AARP, you may also be able to get a discount from your insurance company. Some insurers have partnered with AARP to provide discounts or other benefits to their drivers. Be sure to ask your insurance company whether this is a possibility. If not, you can ask AARP for a list of insurers in your area that will offer a discount.

Here are a few other discounts and money-saving strategies you may be able to take advantage of after retirement:

— If your adult children no longer live at home, be sure to remove them from your auto insurance policy. If your kids are in college, see if you can limit their inclusion on your policy to keep the rates low.

— Tell your insurance company that you’re driving less if you no longer have to commute; the reduced mileage may result in lower rates.

— Many retirees own additional assets, like boats or summer homes. Be sure to bundle your insurance policies whenever possible to get the best premiums.

— Be sure to take advantage of discounts for any safety and anti-theft features on your vehicle. Features like backup sensors or alarms can help shave money off your premiums.

— See if there are any defensive driving classes you can take. You’re never too old for a skill refresher, and most insurance companies offer discounts for completing these courses.

By taking advantage of these discounts, you should be able to enjoy low insurance premiums well into your senior years. After age 65, rates begin to increase again, and drivers over 70 are often viewed as a high risk by insurers. If you make an effort to secure the best possible rates now, you can rack up the greatest savings in preparation for old age and its inevitable rate increases. If your current company isn’t offering you the best rates, you can comparison shop online to find an insurer who will appreciate you and reward you with the discounts you deserve.