Car Insurance For Seniors
Car insurance for seniors trends upward as you get older, but there are steps you can take to get the best rates possible.
“Seniors have experience driving, so it is not comparable to teens,” said Janet Ruiz, director of strategic communications at the Insurance Information Institute. “Many companies do have safe driving courses for seniors to alert them to the specific things they may encounter as they age. Some give a discount if you take the safe driving course, which is usually offered online.”
Some companies even cater specifically to senior drivers, like The Hartford, which partners with AARP for it’s auto insurance program.
Average Senior Car Insurance Rates By Coverage Type
Senior car insurance coverage ranges from basic liability car insurance coverage, usually required by state law, to full coverage car insurance for damages and expenses for both you and the other driver if you are at fault. Full coverage also protects you for damage to your car not sustained in a car accident and theft. How much coverage you need depends on your circumstances, but full coverage with higher maximum limits could protect your nest egg.
The best car insurance option for you depends on your individual situation and needs, including your vehicle type, income, savings and more. If youre looking to save money, reducing your coverage or raising your deductible could result in lower car insurance premiums. For a 70-year-old driver, the average cost of minimum liability insurance is $797, while full coverage with 50/100/50 limits costs an average of $1,334, which is an increase of 67.4%.
AVERAGE CAR INSURANCE FOR A SENIOR
Minimum liability annual cost: $797
Comprehensive/Collision annual cost: $1,334
Comprehensive/Collision annual cost: $1,454
How To Sign Up For Senior Car Insurance
Getting car insurance as a senior is pretty simple. Most car insurance companies today offer an online quote tool, where you provide your personal details and vehicle details and choose your coverages, policy limits, and deductibles. If you are satisfied with the estimated rate, you can often purchase the policy online and pay the first month’s premium without ever speaking with an agent.
However, if you prefer to work with an agent or need help getting coverage, you can typically call the insurance company directly or make an appointment with an agent at a local office. Once you have a policy, you often get access to an online customer portal where you can pay bills, file claims, download your ID cards and policy documents, and manage your coverage.
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Get Credit For Driving Less
Recently retired and driving less? Let your insurer know. Your premium should go down if you no longer commute to a job every day and log fewer miles.
If you drive infrequently, you might want to consider pay-per-mile insurance, which bases premiums in part on how many miles you drive. Youll use either a device plugged into your cars diagnostic port to record your mileage, or download an app to your smartphone which tracks your driving behavior and sends the data to your insurer. Metromile, Allstate, Nationwide and Mile Auto all offer per-mile insurance in select states.
Whats Different About Car Insurance For Older Drivers
Your age can have a big effect on your car insurance.
The under 25s will usually pay the most for insurance. Insurers view them as high risk because they have fewer years of experience behind the wheel than older drivers.
Premiums tend to decrease with age, but there does come a point where the price starts creeping back up.
There are specialist car insurance providers for elderly drivers. Whether youve just turned 50 or youre approaching 100, shopping around will help you find the right policy and price.
489 licences were held by people aged 100 years old and over in October 2021, according to the DVLA
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How Can I Add A Senior Driver To My Insurance
If you have an aging parent or another senior who shares your home and plans to drive your vehicle, its important to let your car insurance company know.
If the senior plans to drive your vehicle, you must alert your car insurance company of their presence at your home and ask if you must add them to your insurance. An insurer may not require a senior to be added to your policy if the senior still has a car and insurance. However, it may ask for a copy of the seniors policy to make sure it is valid.
If the senior doesnt have a car or policy, youll definitely need to add him or her to your policy if the senior plans to drive your vehicle. Not doing so could result in significant out-of-pocket expenses or even worse, losing your insurance if the senior gets into an accident while driving your car. Claims in this situation would likely be denied.
Car Insurance Discounts For Seniors
As weve mentioned, you can take advantage of discounts as you shop for cheap car insurance. Even if a company doesnt offer senior-specific discounts, there are likely still discounts youll be eligible for. Below is a list of some of these discounts from our top providers.
- Nationwide: Get up to a 10 percent discount for signing up for usage-based insurance receive recurring discounts for going paperless.
- State Farm: Save up to 40 percent on medical-related coverage for eligible passive restraint systems get up to a 30 percent discount on auto insurance by downloading and using the Drive Safe & Save Mobile app.
- Travelers: Save up to 13 percent on your car insurance if you bundle Travelers car and home policies.
- Farmers Insurance: Owners of hybrid cars and other alternative vehicles can receive 5 percent savings.
- Progressive: Receive up to 5 percent savings on two or more policies with Progressive .
- AARP from The Hartford: Save up to 10 percent just for being an AARP member save up to 5 percent on car insurance and up to 20 percent on home, condo, or renters insurance when you bundle.
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Best Car Insurance Companies For Seniors
There is no single “best” car insurance for seniors. Different insurers calculate their rates with proprietary methods and each has a different rating system. The cheapest auto insurance for seniors depends on the driver, vehicle and location. However, to get an idea of what you’ll pay, we provide average rates for full coverage, with a $500 deductible. The data is based on rates from up to six major insurers in nearly every ZIP code of the country. The table below shows average rates for drivers aged 60, 65, 70 and 75 in all states.
How Much Does Car Insurance Cost For Seniors
The cost of car insurance for seniors depends on many factors, like location, credit score, and driving record. In general, car insurance rates start to increase around the age of 60 and get more expensive with each decade following. Still, seniors tend to have the lowest insurance rates of any age group overall.
Based on Insurifys proprietary database, the percentage increase from the average premium at age 60 to the average premium at age 70 is about 6.5%. The increase from the average premium at age 60 to the average premium at age 80 is higher, at 15%.
In the table below, you can see the average monthly car insurance premium for drivers in their 60s, 70s, and 80s, based on sample rate data.
| Age Group |
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Where Do I Get The Cheapest Car Insurance Quotes In Richmond Hill
If youre looking for one provider that will offer the cheapest car insurance rates to all its customers, were sorry to say it doesnt exist. This is because car insurance is a complex product which is customized to your unique driving history and financial circumstances.
Every insurance company underwrites risk differently, depending both on factors within your control and factors out of your control. Factors that you cant control that will influence your car insurance rates include your age, your gender and, in some cases, where you live. In addition, the loss ratios of the company youre working with may also be a factor. These are calculated using the claims history of that companys other customers. These factors can make finding affordable car insurance in Richmond Hill difficult.
While many factors out of your control do go into calculating your rate, dont worry, you still have control over a number of factors, which when taken together, can help you score a better rate.
This is also why comparing the car insurance market is so important. By comparing quotes from multiple providers serving Richmond Hill, youll get a sense of what you can expect to pay. Youll also be able to see which car insurance providers favour your risk profile.
Why Do Auto Insurance Rates For Seniors Rise
Car insurance companies base rates on how much risk a driver poses to them. Basically, if statistics show you are in a group that makes you more likely to make a claim, you’ll pay more for auto insurance. Mature drivers have experience on their side, but also have their aging bodies and minds that make one not as spry behind the wheel.
Drivers ages 70 and older have higher crash death rates per mile driven than middle-aged drivers , according to the Centers for Disease Control and Prevention. Much of thats due to increased vulnerability to injury in a crash. In 2019, the latest statistics available, about 8,000 older adults, 65 years of age and up, were killed in traffic crashes and more than 250,000 were treated in emergency departments for crash injuries.
The CDC notes that age-related physical issues, such as arthritis, reduced flexibility and limited range of motion and decline in vision, plus diminishing cognitive functioning can affect senior drivers’ driving abilities. This is why keeping a stellar driving history will be important so that you can get cheaper car insurance rates. If you drive beyond your current abilities, and get a ticket or in an accident, this will signal to insurers that you pose a higher risk.
However, there are ways to save on senior citizen car insurance.
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Did You Live Through The 50’s The 60’s And The 70’s
If you remember poodle skirts, hot rods, bell bottoms, and go-go boots, then you deserve to save money on your insurance!
GEICO recognizes that customers over the age of 50 have different needs and interests. As a baby boomer you will probably notice, if you haven’t already, that many auto insurance companies will increase policy premiums or even decide not to renew a policy once the policyholder reaches a certain age. GEICO has a guaranteed renewal program which many policyholders over the age of 50 could qualify. Take a look at what GEICO has to offer…and you could start saving money on affordable car insurance with our discounts.
Best Car Insurance For Seniors In 2023
Our analysis showed that the best car insurance for seniors is State Farm. We found that State Farm not only offered the most affordable rates on average but they also scored well with their customer satisfaction ratings earning four out of five stars for the estimation process, repair process, claims servicing and settlement.
Finding the best car insurance rates for seniors is not a one-size-fits-all process. Each car insurance company evaluates drivers based on their personalized factors your age, location, vehicle type, driving history and credit score. Therefore, its important to get customized quotes from several different companies to find the cheapest car insurance available.
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Senior Auto Insurance Rates By Age
While auto insurance for drivers 60 and older is much cheaper than it is for, say 21-year-olds, costs do start to go up slightly after 60. Thats because, as they age, older drivers gradually become more likely to get into accidents and file claims for damage.
We found that 60-year-old drivers pay slightly less for car insurance than drivers just five years younger. But a 65-year-old’s car insurance will cost 3% more than a 60-year-old’s. And a senior who is 70 pays 5% more than a 65-year-old 8% more for insurance than someone aged 60.
Average cost of full-coverage car insurance for drivers ages 60, 65, and 70 years old.
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Your Driving Experience Counts Find Your Best Rates Today
Perhaps the easiest way for seniors to save is to compare auto insurance rates. While age is certainly one of the factors determining auto insurance rates, it isnt the only one. Compare multiple quotes from over 50 of Canadas top insurance providers to find the best available car insurance rates available today.
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Allstate: Best For Discounts
- Insurify Composite Score:
- 85
Allstate is one of the best car insurance companies for seniors who are looking for a good selection of discounts. Through Allstate, seniors can save money on their policy by insuring a new car, being a responsible payer, paying in full, enrolling in paperless policy statements, bundling two or more policies, having a car with antilock brakes, and more.
Like State Farm, Allstate offers a smaller selection of endorsements. The only optional coverages are roadside assistance, personal injury protection, rideshare insurance, rental reimbursement coverage, and personal umbrella insurance.
In terms of ratings, Allstates scores are mixed. In J.D. Powers 2022 U.S. Insurance Shopping Study, Allstate is rated near the bottom of the list for overall customer satisfaction in the large insurer category. But the company has an A+ rating from A.M. Best for financial strength, which is one of the highest letter grades.
Do Australian Seniors Pay More For Car Insurance
With lower rates of accidents compared to younger drivers,1 some insurance providers may offer seniors policies with competitive premiums that reflect their good driving history. That said, the cost of car insurance largely depends on a variety of factors, including the drivers age.
So, while you might pay less for insurance than young drivers in their 20s , you may still face a higher premium because of your age, even if youre a safe driver. It all depends on your provider and their risk assessment, as well as your vehicle and driver details.
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Which Auto Insurance Company Has The Best Rates For Seniors
Based on our sample rate data, the car insurance companies with the cheapest rates for senior drivers are State Farm, Farmers, and Erie. However, every driver pays a different rate for coverage based on their personal situation and location.
We determined that State Farm and Farmers are two of the best car insurance companies for seniors. In addition to these providers, we would also recommend Allstate and The Hartford, even though they dont have the cheapest rates for older drivers.
How Can Seniors Get A Cheaper Car Insurance Rate
Getting a cheaper car insurance rate starts by understanding how they are calculated. While some factors in getting a cheaper car insurance rate are out of a senior drivers hands, many arent. Here are some ways to save.
Looking to purchase a car? Choose a simple model without complicated options, or a pre-owned vehicle. These sorts of cars tend to cost less to fix in case of collision and arent as attractive to thieves. This means they typically cost less to insure compared to new high-performance or luxury models.
To get affordable car insurance for senior citizens, your best course of action is to shop around. Not every company will offer you the same discount options or similar premiums. By using a comparison tool like LowestRates.ca, only a few minutes separate you from finding cheap car insurance that fits your needs.
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What’s The Average Car Insurance Cost For Seniors And Older Adults
Although individual personal factors, driving history, and location will affect your car insurance costs, in general, your premiums should decrease or stabilize as you get older. Statistically, adults in their 50s and 60s get the best car insurance rates. As you age, you may be able to qualify for better rates based on:
- The number of discounts you qualify for
- Your driving experience
- Hopefully fewer claims
- Driving less once you retire
As always, we recommend comparing quotes from several insurers to see which ones offer you the best combination of coverage and value for your situation.
Drivers in their 70s may notice rising premiums because of a higher likelihood of accidents. For example, our research revealed increases of $300 to $500 on average from ages 60 to 75, and Progressive notes that rates start to increase for drivers aged 75 and up. If youre in or approaching your 70s, it may be even more worthwhile to compare quotes from your current company as well as a few others.
Best Overall And Best For A Budget: State Farm
State farm
State Farm, the largest car insurer in the U.S., is our top pick for seniors, and it’s also our pick for best budget insurer for seniors.
The insurer, which is highly ranked in several U.S. regions for its customer service, is an affordable choice for seniors, offering low average premiums, multiple discounts, accessibility, and great third-party ratings.
The average annual premium for drivers aged 67 is $880.
We chose State Farm as the best overall car insurance provider for seniors, and the best provider for seniors on a budget. Based on our research, State Farm offers some of the cheapest premiums for older drivers. State Farms average rate for 67-year-olds is $880 per year for full coverage insurance, which comes out to about $73 per month.
State Farm also offers many discounts for seniors who want to get an even better deal on their car insurance. You can get discounts by:
- Maintaining a clean driving record
- Taking a defensive driving course
- Bundling your policies
- Enrolling in the Drive Safe & Save program
- Having a car with advanced safety features
- Having an anti-theft device in your vehicle
Although State Farm’s selection of discounts is impressive, some are only available in certain states. Senior drivers in California can take a mature driver improvement course to access a discount, but this is not offered in most other states.
- Rental car reimbursement
- Rideshare insurance endorsement
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