American Association of Retired Persons (AARP®) is one of the leading senior citizens associations in the US, because of this, it is in a good position to offer discounts and services to its members. You can obtain membership for just $16 a year if you are at least 50 years old. Insurance is offered in partnership with AARP by leading issuers such as The Hartford and New York Life, which does present a slight drawback as you won't be entitled to multiple policy discounts if these are with two different issuers. That said, whether you're 60 years young and fitter than ever, or 50 years old and feeling a little rusty, you'll probably appreciate AARP's experience in designing insurance policies that suit your needs. Here, I will show you what we like and dislike about this insurance provider.
Features We Like:
AARP Membership. Besides helping you get discounted insurance, membership also entitles you to discounts on shopping, vacations and travel. Here are a few benefits that I found interesting:
- Exclusive 10% discount at select hotels.
- Up to 25% off Avis and Budget car rentals.
- $65–$400 off British Airways round-trip ticket purchases to more than 100 cities worldwide.
- Up to 20% off when shopping online at Reebok, or at a Reebok outlet store.
- Save up to 10% when you shop at Michaels Stores.
Types Of Coverage:
Car insurance is provided in partnership with The Hartford, an insurance provider that specializes in auto insurance. It offers solid benefits to you as a car owner that you may have overlooked in your search for the right policy. For example, AARP offers lifetime renewability on your policy, which means that as long as you are legally and physically able to drive a car and pay your premiums, you can count on getting their coverage. Other outstanding benefits they offer to drivers are:
- RecoverCare. This coverage will pay costs of care while you recover from injuries you suffer in a car accident.
- Single deductible. If two of your cars are involved in the same accident, you will only pay one deductible (whichever is higher) for both claims. If you have a homeowner's insurance with them, and your car and home are damaged in the same incident, you will only pay the highest deductible for both claims.
- Disappearing deductible. If you take their Advantage Plus policy, you'll get $50 taken off your deductible if you keep a clean driving record for 3 years in a row. After that, each year that you keep your good driving record, your deductible will be lowered by $50 until you reach a $0 deductible (or $100 minimum in NY and PA).
- New car replacement. If your car is totaled within 15 months or 15,000 miles of purchasing it, this insurance will cover the entire cost of replacing it with a new one of the same make and model.
- If you take the AARP Smart Driver Course (discounted for members) you may be eligible for an auto insurance discount.
Motorcycle insurance is issued by Foremost in partnership with the AARP. If cruising the open road on two wheels is your kind of ride, you may appreciate their optional benefits like coverage and high limit liability and medical payments. Here I'll list a few of their outstanding benefits for you as a biker:
- First accident waiver means your rates won't go up after you have one accident.
- Equipment coverage of up to $3,500 (can be increased up to $15,000) comes with their comprehensive coverage and covers additions to your bike such as a sidecar or custom paneling.
- Safety apparel coverage covers damage to your protective clothing up to $1,500.
- Replacement cost total loss settlement. This covers the full cost of replacing your totaled bike (up to $35,000) for up to two years. You can only get this coverage if you buy the bike new and insure it with them within the first 30 days.
- Towing and roadside assistance with trip interruption coverage means you and your bike will be well cared for in the event of a breakdown.
- Trailer coverage of up to $7,500 covers damages to your bike trailer if you have an accident.
- Save up to 25% when you insure more than one bike with them.
Boat insurance from AARP is issued by The Hartford. It's marketed as coverage that will help you stay afloat - and with discounts for being part of a watercraft club and fitting your boat with a VHF radio or other safety equipment, this insurance is a good option for AARP members. If you own a boat you should consider these benefits offered by this insurance:
- Seasonal use protection lets you get lower rates if you don't use your boat for long periods of time, for example in winter. You still get year round protection even while your boat is in storage.
- Agreed value coverage means you set the value of the benefit to be paid out, rather than getting an appraisal. Your premium will go up or down depending on the amount of the benefit you choose.
- Water sports liability coverage is optional and has you covered while you have a great time water skiing, tube riding or enjoying other towing-related sports.
- Multi-vehicle discount. If you insure another recreational vehicle with them, such as a motorhome, you get a discount on your boat insurance.
- Multiple policy discount. If you take out a car or homeowners insurance with them at the same time, you get discounts on your boat insurance and other policies.
Term life insurance. This term life insurance is offered to AARP members by New York Life and covers you with up to $100,000, depending on your policy. No medical examination is needed, but you will be required to submit some basic health information. You can choose to be covered from $10,000 up to $100,000, depending on which rates you can afford. You can keep your coverage until you turn 80, which is longer than many other insurers offer. Note that premiums increase as you enter each new five-year age band, so you will pay higher premiums as you get older. The good news is that if you're a woman, you will pay a lower premium.
Whole life insurance from AARP (issued by New York Life) pays out a benefit of up to $50,000 when you pass away. What I like about their life insurance is that rates don't increase as you get older or your health changes. Since the premium you pay depends on your age when you get the policy, you can get away with paying pretty low rates if you get the policy when you're young. Here, I list a few outstanding benefits of this life insurance:
- Premium waived for eligible nursing home confinements. This means that if you need to take a doctor-ordered nursing home stay, your premium may be waived for up to 180 days in a row. You will still be covered even though you don't make payments during this time.
- 30 day guarantee. You can cancel this insurance and get a refund within 30 days of taking out the policy. If you find a better deal meanwhile or decide you don't need life insurance, you can get your money back.
- No premiums after 95. If you're lucky enough to live to 95, you'll be able to carry on enjoying coverage, without paying any premiums.
- Accelerated benefit means that in most states you can access up to half of your life insurance benefit if you are diagnosed with a terminal illness like cancer and have a life expectancy of 12 months or less (24 months or less in Illinois and Texas). Certain taxes may apply to this early life benefit, but if you want to enjoy part of your benefit before you die, this is a nice option.
Homeowner's insurance (offered by The Hartford) provides a 100% protection plan which covers the actual cost of rebuilding your home after a disaster (up to 150% of your policy limits). Many insurers only pay out the estimated value of the structure, which is usually a lot less than it costs to rebuild. Special features of their homeowner's insurance include:
- ProtectorPLUS. Up to $5,000 of your deductible could be waived if the total cost of a disaster is $25,000 or more. Hurricanes, earthquakes and certain other hazards do not qualify.
- Possession replacement. If your belongings are badly damaged or stolen, this insurance will cover the actual cost of replacing them. Many insurances only pay you back up to an amount set for each item, which may be very low.
AARP primarily offers coverage from other insurance providers to its members. As a large association, it is able to offer good discounts and specialized benefits. When getting one of the insurance policies they offer, it's important to note that you are getting the policy from a third party insurer, and not AARP. New York Life, The Hartford and Foremost are all established insurance providers. The Hartford, which provides car and homeowners insurance through AARP, received the highest ranking in the J.D. Power and Associates 2012 Insurance Shopping Study.