How Much Car Insurance Do Senior Citizens Need?

Senior citizens are used to enjoying discounts from many different directions. Unfortunately for many seniors, car insurance is not an area where a senior discount is granted. In fact, as seniors head into their late seventies and early eighties, they enter a group of drivers whose risk is assessed about as high as new teen drivers. Because of this, many seniors must take a hard look at how much insurance they need to carry on their cars.

Many seniors no longer need a loan to buy a car.

A large number of seniors who are not rich still have sufficient capital to pay cash for their cars. With no loan to service on their car, there is not a pressing need to have collision insurance. Many seniors have the ability to absorb the loss of their vehicle without ruining their finances. By not keeping collision insurance on their cars, they are able to bank $500 to $1,000 per year toward their next vehicle. If they have been declared a high risk, the savings can go even higher.

Seniors may find more value in towing and roadside assistance policies.

Because senior citizens may not be as able to fend for themselves or travel on foot to get help, having insurance that helps to pay for some these services can make sense. This type of coverage is especially useful when coupled with a cell phone. It can mean that the seniors do not have to venture from their vehicle to receive help. This can be much safer. The value of safety in this instance is hard to put into dollars and cents.

For seniors who are still financially insecure, they may need to keep collision insurance.

Not all seniors have achieved financial security. Because they need their car for trips to the doctor, grocery store, and other essential purposes, keeping collision insurance can mean the difference between being able to replace their vehicle or having to walk or call a cab. However, a similar result can be achieved by driving an older but reliable vehicle that does not cost as much to replace. The cost of two years' worth of insurance in this case may be enough to buy another car.

Seniors must carry liability insurance.

Liability insurance is mandated by the state. Seniors cannot simply ignore this. Like everyone else, they must purchase at least the minimum state required amounts. Depending on how many assets they must protect, the minimum may be enough. It is best to consult with a few insurance brokers to get the best idea of what coverage level will suit each household or individual.