The finest car insurance company for your golden years may not be the same company you had in your forties and fifties. We analyzed large insurers’ coverage options and premiums for senior drivers to identify the top auto insurers for drivers 65 and older.
How Much Is Car Insurance for Seniors?
We found a $1,188 price difference between the least expensive and most expensive car insurance providers for seniors when comparing the insurance policies they offer.
Based on our research, Geico offers the most affordable auto insurance for senior drivers (an average of $1,197 per year). Farmers is the most expensive (averaging $2,385 per year).
The annual average cost of car insurance for an 80-year-old woman is $1,766. Our analysis revealed that this is 13% higher than the average rate for a competent female driver aged 30 ($1,569 per year).
We also analyzed rates as senior drivers moved from one age bracket to the next. Between the ages of 65 and 85, it is probable that auto insurance rates will begin to increase around age 65.
After the age of 65, our analysis indicates you can anticipate an increase of approximately 6 to 12 percent every five years. From age 65 to age 70, car insurance premiums increase by 6%.
Costs increase steadily until, at age 85, you have incurred a cumulative increase of 43% over your rates at age 65.
Increases in car insurance premiums for senior drivers
Rates are based on insuring a Toyota RAV4 with 100/300/100 liability coverage ($100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident, and $100,000 in property damage liability), uninsured motorist coverage, collision and comprehensive insurance. The averages are based on the rates of 10 major auto insurance providers.
Why Do Auto Insurance Rates Increase for Seniors?
Insurance companies take age into account when calculating premiums because certain age groups are more likely to be involved in accidents and submit claims.
When you average auto rates by age, adolescents and seniors typically pay more than other drivers, all else being equal. Due to state regulations, age is not considered when determining rates for car insurance in California, Hawaii, or Massachusetts.
The onset of higher auto insurance premiums at age 65 is a result of the insurance industry’s perception that this segment of the senior population is more prone to accidents and claims.
The Centers for Disease Control and Prevention (CDC) reports that adults aged 65 and older are more than twice as likely as drivers aged 24 to 64 to report a medical condition that makes driving more difficult.
Senior drivers have significantly more road experience than teenagers, but age-related physical and mental changes can make safe driving more difficult.
Deteriorating vision and cognitive abilities, muscle disorders, and a decline in general physical fitness are the primary age-related factors that can make it difficult for seniors to drive. Medication and its adverse effects can also increase risk by impairing concentration and driving skills.
See also: What Is the Best Car Insurance Company?
The decreased coordination, flexibility, and strength associated with aging can impact reaction times, making it difficult for senior drivers to avoid collisions. In addition, the CDC reports that as drivers age, their risk of being slain or injured in a traffic accident rises.
According to the Insurance Institute for Highway Safety, fatal crashes increased significantly between the ages of 70 and 74, and then peaked among drivers 85 and elderly.
This is primarily due to the fact that senior drivers in this age range are more prone to crash-related injuries, particularly thoracic injuries and other medical complications. The severity of incidents involving older drivers results in higher auto insurance premiums.
Attempting to maintain physical and mental fitness as you age may be beneficial. Adjusting your driving behaviors to remain a safe driver can also help you maintain more affordable auto insurance rates.
Having a clean driving record devoid of accidents and moving violations is a great indicator to car insurance companies that you are still a safe driver deserving of affordable premiums.
Tips for Senior Car Insurance Buyers
All senior drivers will experience a gradual increase in their auto insurance premiums, but there are methods to minimize this increase.
Compare prices from multiple companies. The best advice is to compare multiple auto insurance providers. When comparing auto insurance quotes from at least three companies, your objective is to find the one with the best prices for your specific situation, given that each company has its own rating system.
Request discounts. Don’t be shy about contacting your insurance agent or provider to ensure you’re receiving all of the available auto insurance discounts. Some straightforward discounts include those for bundling multiple policies from the same provider, paying in full, and going paperless.
Take a course in defensive driving. Many auto insurers will offer you a discount if you complete an approved defensive driving course. Some states require this discount for drivers over the age of 50 to encourage them to sign up and improve their driving abilities.
Drive less to save money. Inform your auto insurance company if you are retired, work fewer hours, or simply drive less. A low-mileage discount is available if you drive fewer than a specified number of miles annually.
Keep a clean driving record. Keeping your driving record free of traffic violations and accidents will demonstrate that you are a lower-risk driver and, if applicable, qualify you for a rate reduction.
Best Car Insurance For Seniors Of 2023
Geico
Geico has the cheapest car insurance rates for senior drivers of all ages, so it’s worth looking into if you want affordable car insurance. Geico’s low number of auto insurance complaints is an additional reason to consider this company.
Nationwide
Many of Nationwide’s additional coverages can save you money in the long run. It also provides usage-based insurance and a pay-per-mile option, both of which may be suitable for retirees who do not drive as frequently as commuters or young parents. Nationwide’s low rate of auto insurance complaints is another reason to consider the company when searching for auto insurance.
Travelers
If you choose this special coverage option, Travelers may absolve accidents and minor violations in addition to offering reasonable rates for senior drivers.
It provides usage-based insurance, which is advantageous for secure senior drivers, and has low rates for gap insurance, which is advantageous for drivers who may be purchasing a new vehicle with a substantial auto loan. The company receives few complaints regarding its auto insurance, making it a decent option for comparison shopping.
USAA
Senior driver rates with USAA are very reasonable. It also provides additional coverages that seniors may find useful. To be eligible for USAA insurance, you must be a military member, veteran, or military family member.
Auto-Owners Insurance
Auto-Owners Insurance is distinguished by its optional coverage options, its low level of complaints, and its claims process, which compensate for its average premiums for senior drivers. All of these factors make it a decent option to investigate when searching for coverage.
Senior driver rates with USAA are very reasonable. It also provides additional coverages that seniors may find useful. To be eligible for USAA insurance, you must be a military member, veteran, or military family member.
Erie
Erie has excellent coverage options and an excellent rating for its collision repair claims procedures. These benefits compensate for Erie’s mediocre auto insurance rates for seniors in comparison to leading competitors.
State Farm
State Farm’s competitive auto insurance rates for seniors, even those with accidents or speeding citations, and its low rate of customer complaints make it a company worth investigating.
