Age is one of the biggest factors in determining car insurance rates. Generally, drivers under 25 and over 65 are more likely to be involved in a car accident than any other age group. As a result, insurance companies charge higher premiums to these consumers.
At the same time, that’s not always the case.
With help from the right car insurance companies and discounts, older drivers can save big on their policies.
Auto Insurance Discounts for Seniors
There are many ways you can save on your car insurance, from senior discounts to educational courses, policy changes, and more. If your premiums are rising and your wallet is shrinking, try the following options to save on insurance costs:
- AARP Discount: Your insurer may offer age or retirement-based discounts. If you’re over the age of 50 and have retired, consult with your insurer to see if there are any discounts available.
- Good Driver Discount: If you have a safe driving record with very few infractions, you could secure a sizable discount. You will need to maintain that record to avoid your premiums rising in the future.
- Low Mileage Discount: If your car spends most of the time on the driveway or in the garage, you could qualify for a low mileage discount. Most insurers, including Allstate and Geico, offer programs that track your driving habits and mileage, allowing you to save big when you don’t have a commute to worry about.
- Bundling: Multi-car and multi-policy discounts encourage you to add other drivers and vehicles to your policy. If your partner or child has a car, add them to your policy; if you need home or life insurance, get it from the same provider.
- Payment Discounts: Most insurance providers encourage you to auto-pay, go paperless, and pay-in-full by offering small discounts.
- Driving Courses: If you have ever completed a defensive driving course, you could be offered a discount on your car insurance policy. It’s proof that you are a safe driver, which means your claim risk is greatly reduced.
- Safety Features: Does your car have airbags, anti-lock brakes, and anti-theft features? If not, you could be paying an extortionate amount of money for your insurance. These features reduce the risk of costly claims and most insurers offer discounts for them.
- Other Discounts: Senior drivers are more likely to be homeowners, allowing them to save a few more dollars than if they were renting. Married policyholders are also charged less than their single counterparts.
Cheapest Senior Car Insurance by State
Your location has a massive impact on your insurance quotes and can vary significantly from one state to the next. For example:
- Ohio: Average Cost of Senior Car Insurance Premiums = $1,400
- California: Average Cost of Senior Car Insurance Premiums = $1,800
- Florida: Average Cost of Senior Car Insurance Premiums = $3,800
- Illinois: Average Cost of Senior Car Insurance Premiums = $1,600
- Georgia: Average Cost of Senior Car Insurance Premiums = $2,300
- Michigan: Average Cost of Senior Car Insurance Premiums = $6,800
- North Carolina: Average Cost of Senior Car Insurance Premiums = $2,500
- Pennsylvania: Average Cost of Senior Car Insurance Premiums = $1,600
Best Car Insurance Companies for Seniors
USAA offers some of the cheapest car insurance quotes for seniors, but only active or former military personnel will qualify. Other insurers worth considering include:
The Geico Prime Time contract guarantees you can renew your policy, negating the complications and stress that would otherwise ensue. It is offered to drivers over the age of 50 if there are no under-25s on their policy, they are not using the car for commercial purposes, and they have been accident-free for at least 3 years.
This program is available to drivers in over 30 states, including Arkansas, Arizona, Alaska, Oregon, Louisiana, Washington, and West Virginia.
The AARP Auto Insurance program was created with senior citizens in mind. It guarantees that your insurance policy will be renewed if you have a valid driver’s license and keep paying your premiums.
Metromile is a great option for drivers who don’t have a commute and don’t spend a lot of time on the road. It’s based on your mileage and driving habits and will stay low if you drive infrequently and safely.
Why Is Senior Car Insurance More Expensive?
A combination of recklessness, inexperience, and the perceived invulnerability of youth is why young drivers are more likely to make claims on their car insurance. What about senior citizens, though?
They’re not trying to impress their friends by putting the pedal to the metal and drinking behind the wheel, but they do suffer from a host of problems that make them a higher risk.
Father time is cruel, and with age comes vision problems, hearing loss, dexterity issues, and countless mobility problems. Seniors have slower reaction times and are more likely to suffer from macular degeneration, arthritis, and other issues that could affect their ability to drive.
Of course, that doesn’t mean that all seniors have these issues. In fact, the majority of over 60s are fit, healthy, and perfectly capable of driving safely. They also spend less time on the road than their younger counterparts, so it’s understandable why so many argue against increased rates and common stereotypes.
In fact, the same could be said for younger drivers. Just because a few teenagers treat their cars like toys, doesn’t mean that all young drivers are reckless. Insurers only care about the averages and statistics, and these tell them that older drivers are more likely to claim.