5 Ways for Seniors to Save Money on Auto Insurance

Seniors sometimes get an unpleasant surprise when renewing their auto insurance policy. Even if your driving record is spotless, your premiums could start to go up. Progressive found that rates start to increase for drivers who are 75 and older. CarInsurance.com reports that it happens even earlier, with average rates rising at 65.

Insurers view older drivers as a higher risk, so it's not always possible to avoid a rate hike. Fortunately, it's usually just a small increase if you maintain a good driving record, and there are plenty of ways to cut your car insurance costs.

1. Take a defensive driving course for seniors

Your car insurance company could give you a discount if you complete a defensive driving course. Many states even require insurers to provide discounts to senior drivers who complete one of these courses.

Check if your state has this kind of law in place. If so, see which defensive driving courses qualify. Keep in mind that even if your state doesn't require a discount for completing this type of course, your insurer may still offer you one. Discount amounts are typically 5% to 10%.

Here are a few defensive driving courses for seniors:

• AAA Roadwise Driver
• AARP Smart Driver
• National Safety Council's Defensive Driving for Mature Drivers

2. Look for discount opportunities

Completing a defensive driving course is one of many ways to get auto insurance discounts. Your insurance company may also offer discounts if you:

• Pay full yearly premiums instead of paying monthly
• Bundle your auto and homeowners insurance
• Have your driving habits monitored with a mobile app or plug-in device
• Install safety features on your vehicle

Those are all common discounts that many insurers offer. Most insurers provide information about their discounts on their websites. Or if you'd rather talk to someone instead of searching online, call customer service at your insurance company to ask.

3. Go rate shopping every year

It's smart to get into the habit of shopping for car insurance every year. Unfortunately, only 26% of Americans do this, according to a car insurance survey by The Motley Fool Ascent.

By shopping around, you can see if you're getting the cheapest car insurance, or if there's a lower rate available with another insurer. Also, if you never do this, you may end up getting charged more. In most states, insurance companies can perform price optimization, raising rates on drivers who aren't expected to shop around.

An easy way to go rate shopping is with The Motley Fool Ascent's car insurance comparison tool. All you need to do is plug in some basic information, and you can have insurance quotes in a matter of minutes.

4. Keep your mileage up to date

The number of miles you drive is one of the factors that impact your insurance rates. After all, the more time you spend on the road, the greater your risk of an accident. So insurance companies charge lower rates to people who don't drive as much.

It's always important to provide your insurance company with an accurate estimate of your annual mileage. That's especially true if you're driving less as you get older. For example, if you've retired and don't have a daily commute anymore, your mileage has probably gone down quite a bit. Update that with your insurer, and your rates could also decrease accordingly.

5. Make changes to your policy

You can usually make adjustments to your auto insurance if you want to pay lower premiums. One option is to increase your deductible. For example, if your current deductible is $500, consider changing it to $1,000. When you raise your deductible, that lowers your premiums.

The tradeoff is that you'll need to pay more if you need to file a claim with your insurance. But if you have a healthy balance in your savings account and you're a safe driver, then a higher deductible could make sense.

Another option is to remove coverages you no longer need. You could get rid of rental car reimbursement if you think you could get by without a car in a pinch. Or you could cut roadside assistance if you can get it cheaper elsewhere -- some travel credit cards include it as a complimentary extra.

Drivers of every age can save on auto insurance, and seniors are no exception. Whether your premiums have started creeping up or not, it's always a good idea to see what savings opportunities are available to you.