Jeffrey Wade
Adding a driver to your car insurance can potentially increase the cost of your insurance premiums. The added driver's driving record usually won't affect your insurance, but it can impact the price of your premiums. The cost increase depends on various factors, such as the driver's age, driving history, and the type of car. Generally, younger or less experienced drivers result in higher premiums because they are seen as riskier. On the other hand, adding an experienced driver with a clean driving record might lead to lower premiums. When it comes to senior drivers, age becomes a risk factor, with insurance costs continuing to rise at and after 70 due to concerns about the rising accident risk. However, adding a senior driver to a policy with a younger driver could potentially lower the overall premium.
| Characteristics | Values |
|---|---|
| Car insurance for senior drivers | Often costs more than other age groups except for teens |
| Reasons for higher costs | Higher risk of accidents, more prone to serious injuries, increased age may cause a decline in driving skills and reflexes |
| Age when costs start to rise | Varies, but generally around 65-75 |
| Ways to lower insurance costs for seniors | Compare quotes, ask for discounts (e.g. defensive driving course, low mileage), pay-per-mile insurance, shop around, increase deductible, enrol in usage-based programs, consider location and vehicle type |
| Best insurance companies for seniors | Nationwide, USAA, Travelers, Erie, State Farm, Progressive |
| States with restrictions on insurance increases based on age | California, Hawaii, Massachusetts |
What You'll Learn
Senior driver discounts
Senior drivers can often obtain auto insurance discounts, as insurance companies recognize the experience and typically lower risk associated with mature drivers. However, auto insurance premiums tend to get more expensive for seniors from the age of 65, with a significant increase from the age of 75 onwards. This is due to older drivers being more likely to be involved in accidents and more prone to serious injuries.
California
In California, state insurance law mandates that insurance companies offer drivers aged 55 and older a discount on their auto insurance after completing a licensed Mature Driver Improvement Course. These courses are designed to improve road safety skills and enhance confidence behind the wheel by providing updates on the latest traffic laws and defensive driving techniques. The completion of these courses can result in significant savings on auto insurance premiums.
Nationwide
Nationwide has been identified as the best car insurance company for senior drivers, offering rates that are nearly $748 less than the national average rate for this demographic.
Progressive
Progressive offers a usage-based program called Snapshot®, which measures driver behavior using in-vehicle devices. Safe driving can be incentivized through this program, as safe drivers can earn a lower rate.
General Tips
To obtain cheaper car insurance rates, senior drivers can also consider the following:
- Shopping around for the best rates and comparing quotes from multiple insurers
- Increasing their deductible, which can lead to lower premiums
- Reducing their mileage, as driving less can lower the odds of being in an accident and result in lower rates
- Choosing a location with lower crime and accident rates when moving, as ZIP codes can impact insurance rates
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Defensive driving courses
The AARP Smart Driver online course, for example, can make participants eligible for a multi-year discount on auto insurance. The course covers important topics such as the effects of medication on driving, reducing driver distractions, maintaining a safe following distance, and adjusting driving habits to compensate for age-related physical changes.
Florida seniors aged 55 and above who complete an approved defensive driving course, such as the Florida Online Defensive Driving Course, are eligible for a discount of up to 10% on their insurance premiums. This course helps seniors stay up-to-date with the latest vehicle technology, such as adaptive cruise control and lane departure warning systems, and teaches techniques to improve reaction time and reduce risks.
In New York, completing a defensive driving course can lead to insurance discounts and is offered online for a relatively low cost. Similarly, the Comedy Defensive Driving course in New Jersey costs around $29 and takes about six hours to complete. While defensive driving courses may not always lead to immediate insurance discounts, they can still make you a better and safer driver.
It is important to note that insurance laws and discounts vary from state to state, so it is advisable to check with your insurance carrier to determine eligibility and understand the specific requirements and restrictions. While defensive driving courses can be beneficial at any age, some insurance companies offer discounts specifically for older drivers.
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Senior driver safety tests
Senior drivers are among the safest on the road, with low insurance rates to match. However, auto insurance premiums increase for seniors from the age of 65 onwards, with the steepest increases from 75 onwards. This is due to a variety of factors, including the increased risk of accidents, the likelihood of sustaining serious injuries, and the potential for age-related reflexes and reaction times to decline.
To ensure senior driver safety, it is recommended that seniors regularly assess their driving performance. AAA Exchange provides a 15-question self-rating driving assessment called 'Drivers 65 Plus' to help seniors evaluate their driving performance. The assessment covers areas such as decision-making, reaction times, and driving skills. After completing the assessment, seniors can calculate their score and receive feedback on their strengths and weaknesses, along with suggestions for improvement.
In addition to self-rating tools, professional driving assessments are also available. These typically fall into two categories: driving skills evaluations and clinical driving assessments. Driving skills evaluations involve an in-car evaluation of an individual's driving abilities and may include a recommendation for specialized driver training. Clinical driving assessments focus on identifying any underlying medical conditions that may impact driving performance and offering solutions to ensure safety.
Seniors can also take proactive measures to lower their insurance costs. This includes maintaining an accident-free record, enrolling in usage-based programs that offer discounts for safe driving, and reducing their mileage. Additionally, when renewing insurance, it is advisable to shop around and compare quotes from multiple insurers, as rates can vary significantly.
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Senior-specific insurance providers
Senior drivers can take advantage of various insurance providers that offer discounts and incentives to keep costs down.
Nationwide
Nationwide is considered the best car insurance company for seniors, with the cheapest rates for senior drivers. It offers savings of $748 less than the national average rate for seniors. It also allows for bundling of auto and home insurance for extra savings.
State Farm
State Farm is an excellent choice for seniors due to its reliable coverage and customer service. It offers defensive driving courses and good driver discounts, as well as bundling options for auto and home insurance. State Farm also provides special coverage for antique and classic cars.
USAA
USAA is a great option for retired veterans, offering affordable rates and bundling options for auto and property insurance. They also have an app-based safe-driving program and offer discounts of up to 40% on various services.
Progressive
Progressive is the third-largest auto insurance provider in the nation. It offers loyalty and driver-based discounts, accident forgiveness, and good driver discounts. Customers can save approximately $700 a year on premiums by switching to Progressive.
Other Options
In addition to the above, senior drivers can consider companies like Travelers, Erie, and Liberty Mutual. Seniors can also keep their insurance costs down by shopping around, increasing deductibles, reducing mileage, and choosing locations with lower accident and crime rates.
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Senior driver mileage
Senior drivers can often find themselves facing higher insurance premiums due to the increased accident risk associated with older individuals. This is despite the fact that drivers in their 50s and 60s may be more experienced and less likely to suffer from hearing or vision impairments.
However, there are ways for senior drivers to mitigate these higher costs. One way is to take advantage of low-mileage discounts. Many insurers offer these, and they can provide significant savings for senior drivers who don't drive often or very far. According to The Zebra, low-mileage drivers are generally considered to be those who drive between 0 and 7,500 miles per year. The average difference in car insurance costs between those who drive fewer than 7,500 miles annually and those who cover 15,000-plus miles is $86, although savings vary by state. For example, in California, occasional drivers save up to $436 per year due to state legislation.
Senior drivers can also consider usage-based insurance programs, which monitor driving habits and reward safe drivers with lower rates. Examples of these include Snapshot from Progressive and DriveEasy from Geico. However, privacy-conscious drivers may prefer a low-mileage discount from a traditional insurance company, as usage-based programs require the installation of in-vehicle devices.
Other ways for senior drivers to save on insurance include shopping around for the best rates, increasing their deductible, and taking defensive driving courses to qualify for additional discounts.
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Frequently asked questions
Yes, adding a senior driver to your insurance can increase your premium. This is because insurers consider senior drivers to be at a higher risk of accidents and of making claims.
Car insurance for seniors costs an average of $2,150 a year, but prices vary significantly between insurance companies.
The cost of senior car insurance is influenced by factors such as the driver's age, gender, driving history, and the type of vehicle being insured.
To keep the cost of senior car insurance down, it's important to maintain a clean driving record. You can also reduce your mileage and consider your location, as moving to an area with higher crime and accident rates may increase your premium.
Adding a senior driver to your insurance is a simple process. You can contact your insurance provider by phone or through their website, and they will guide you through the necessary steps.
