While car insurance rates are lowest during your adult years, your premiums will rise as you age. Car insurance rates for seniors begin to rise around the age of 65.
A 65-year-car old’s insurance costs on average $1,565. By the age of 75, the average car insurance policy costs $1,847.
However, affordable car insurance for seniors is possible. Many car insurance companies provide senior drivers with discounts. They include discounts for retirees and drivers who complete a defensive driving course. And the simplest way to save is to compare new car insurance quotes.
Everything you need to know about saving money on car insurance in your 50s, 60s, 70s, and beyond is right here.
Seniors’ car insurance rates
Auto insurance for seniors is frequently more expensive. Senior drivers are more likely to be involved in an accident than drivers a few decades younger. Age-related changes in hearing or vision, slower reflexes, health conditions, and medications are all reasons for this. Car insurance rates for seniors begin to rise at the age of 65, but really begin to rise after the age of 80.
Furthermore, older drivers sustain more serious injuries and are killed more frequently than younger drivers. This makes treating seniors more expensive after an injury, resulting in higher claim payments and rates.
Will your insurance premiums rise simply because you’re getting older? What if you have no accidents or tickets on your record? That depends on your insurance company, but the answer is most likely.
Insurance rates are influenced by the entire group to which you belong, rather than just your own driving record. That means that the accident statistics for all seniors influence how much you pay.
Senior driver car insurance discounts
While older drivers’ car insurance rates will eventually rise, many states require that drivers over the age of 50 receive discounts for safe driving and/or completion of approved driving courses.
If you have an American Association of Retired Persons (AARP) membership, for example, you can enrol in the AARP Smart Driver Course. This online or in-person defensive driving course refreshes your safe driving skills and may qualify you for a multi-year insurance discount. The AARP Smart Driver Course is available in all 50 states and Washington, D.C., but you should check with your insurance company to see if the discount will be honoured.
Senior drivers can also take state-approved defensive driving courses through AAA and The National Safety Council, in addition to the AARP programme (NSC). You may be eligible for a 5% to 15% discount on your senior car insurance premium depending on your insurance company and the course you take.
Senior car insurance discounts: Money-saving ideas
There are numerous discounts available to older drivers, and you should take advantage of all that apply to you. The following are eight specific steps you can take to lower your premium costs:
- Reduce your driving. Inform your insurance company if you’ve stopped commuting and are driving less than you used to. Savings range from almost nothing to more than 10% depending on your state (some require insurers to consider mileage when setting rates). Most insurers define “low mileage” as 5,000 to 7,500 miles or less, though some are more lenient.
- Take into account usage-based insurance. Usage-based or pay-as-you-drive insurance programmes can save some seniors up to 40%. A device installed in your vehicle tracks your mileage and driving habits, including your speed, braking patterns, and acceleration. If your driving habits are similar to those of most middle-aged or older drivers, you could save money in two ways: driving safely and driving less. Discounts vary by insurer and can reach 40%.
- Attend a class. As previously discussed, mature driver courses offered by AARP and others can reduce your premiums by 5% to 15%. Most states require insurers to provide the discount, but it is widely available even in states where it is not required. The minimum age for eligibility varies by state.
- Drop a driver. In states where all licenced drivers in a household are not required to have car insurance, you can exclude anyone (such as an elderly spouse or parent) who no longer drives to lower your rates. Alternatively, if your circumstances warrant it, you can change the primary driver to a younger member of the household.
- Improve your vehicle. The most recent vehicle safety features may qualify you for a lower insurance rate. Even without a discount, features like rearview cameras, lane drift, collision warning systems, and parking assist can help prevent accidents and claims, lowering future premium increases.
- Maintain a spotless record. A clean driving record for the last three to five years should qualify you for a good driver discount ranging from 15% to 40%.
- Participate in a club. Membership in organisations such as AARP can provide you with access to discounted pricing. It’s known as a “affinity discount.”
- Reduce coverage. If you have homes and vehicles that you only use occasionally, look into “parked vehicle” or “snowbird” coverage for the months when you aren’t driving them.
- Put it all together. If you haven’t already done so, compare the costs of buying auto and home insurance from the same company. It’s convenient to deal with just one company for home and auto insurance, and you can save up to 11%.
- Put your car in park. If your insurance rates are skyrocketing as a result of your driving record, it may be time to retire. Frequent close calls, finding dents or scrapes on your car or other objects, getting lost in familiar locations, trouble seeing or following traffic signs and signals, slower response time to unexpected situations, misjudging gaps in traffic, causing other drivers to honk or complain, difficulty concentrating while driving, trouble turning to check the rearview mirror when backing up or changing lanes are all signs that you should stop driving, according to AARP. AAA provides advice on how to assess your driving abilities.