The Dark Side Of Auto Insurance: Unfair Treatment Of Older Adults

Auto insurance rates for older people vary depending on factors such as age, driving history, location, and the insurance company. While some companies offer discounts for senior drivers, rates generally increase for older adults due to higher risks of accidents and more expensive claims. Shopping around for insurance and taking advantage of discounts can help seniors find affordable coverage.

Auto insurance rates for seniors

Factors Affecting Auto Insurance Rates for Seniors

Several factors contribute to the increase in auto insurance rates for seniors. One reason is that insurance companies consider older drivers to be riskier to insure due to age-related changes in health and cognitive abilities, which can increase the likelihood of accidents and insurance claims. Additionally, older drivers are more susceptible to severe injuries and fatalities in car accidents, resulting in higher insurance claims.

Ways to Save on Auto Insurance for Seniors

To counteract the rise in auto insurance rates, seniors can explore various options to reduce their costs:

• Shop Around for Better Policies: It is advisable to compare quotes from multiple insurance companies, as rates can vary significantly between insurers.
• Defensive Driving Courses: Taking a defensive driving course can result in discounts on auto insurance rates, and some states mandate such discounts for seniors who complete approved courses.
• Discounts for Seniors: Insurance companies offer various discounts specifically for seniors, including low mileage discounts, time-of-day driving discounts, and good driver discounts.
• Usage-Based Insurance: Seniors with a good driving record and safe driving habits may benefit from usage-based insurance programs, where rates are based on driving behaviour and mileage.
• Bundle Policies: Combining auto insurance with other types of insurance, such as homeowners or renters insurance, can often lead to significant discounts.
• Increase Deductibles: Opting for a higher voluntary excess can lower premiums, but seniors should ensure they can cover the excess costs in case of an accident.
• Review and Remove Named Drivers: Removing grown-up children from the policy or reviewing the risk profile of named drivers can help reduce costs.
• Low Mileage and Safe Parking: Seniors who drive fewer miles or park their cars in secure locations, such as garages, may be eligible for lower rates.
• Choose a New Car Carefully: Selecting a car with a smaller engine and additional safety features can result in lower insurance rates.

Best Auto Insurance Companies for Seniors

While the best auto insurance company for seniors depends on individual factors, some companies are consistently rated highly for their rates, customer service, and coverage options:

• Nationwide: Offers budget-friendly rates, low complaints, and useful add-on coverage features like accident forgiveness and gap insurance.
• USAA: Provides low-cost insurance for military members, veterans, and their families, with good rates for drivers with various driving record issues.
• Travelers: Offers the cheapest rates for low-mileage drivers and has competitive rates for senior drivers.
• Erie: Receives high grades for its collision repair process and has competitive rates and coverage options for seniors.
• State Farm: Excels in customer satisfaction and has relatively low complaint rates, making it a reliable option for seniors.

Defensive driving courses for seniors

• Updates to driving laws and safety regulations
• Strategies to minimise distractions while driving
• Proper use of safety restraints, such as airbags and seat belts
• Understanding the impact of medications, alcohol, and drugs on driving abilities
• Age-related physical and cognitive changes, and how they affect driving
• Safe vehicle maintenance and new vehicle technology

One example of a defensive driving course for seniors is the AARP Smart Driver course, which offers additional training in areas such as stop sign use, roundabouts, turn signals, and pavement markings. The course materials are designed with reader-friendly print types and provide access to state-specific driving information.

Another option is the RoadWise Driver course, created by the AAA Foundation for Traffic Safety and the National Highway Traffic Safety Administration. This course offers a robust curriculum with practical knowledge, proven methods, and useful tips for senior drivers. It is designed to help seniors maintain their independence and reduce risk while driving.

These courses can also lead to significant discounts on auto insurance premiums, typically ranging from 1% to 15%, with most insurance companies offering a 10% discount. Seniors can take advantage of these discounts every three years by completing the defensive driving course and renewing their knowledge.

Discounts for seniors

While auto insurance rates tend to increase for older people, there are still discounts available for seniors. Here are some ways that seniors can save on their auto insurance:

Defensive Driving Discounts

Many insurance companies offer discounts for senior drivers who have completed a defensive driving course. These courses are typically state-approved and can help senior drivers stay up-to-date on the latest driving techniques and technology. Some states even mandate a mature driver discount for those over a certain age (usually 50 or 55) who complete one of these courses. Examples of insurance companies that offer defensive driving discounts include Farmers, GEICO, Progressive, and State Farm.

Good Driving Record Discounts

Seniors with a good driving record, free of accidents and traffic violations, may be eligible for discounts with certain insurance providers. For example, GEICO offers a "Five-year Good Driving Discount", and Progressive offers lower rates for safe drivers through its Snapshot® program.

Multi-Policy or Bundling Discounts

Seniors who bundle their auto coverage with another type of insurance, such as homeowners, renters, or life insurance, may be eligible for a discount. Companies that offer multi-policy or bundling discounts include GEICO, Nationwide, and Allstate.

Military and Government Discounts

Seniors who are military members, veterans, or retired government employees may be eligible for discounts with certain insurance providers. GEICO, for instance, offers a "Retired Government and Military Discount". USAA also offers insurance exclusively to military members, veterans, and their families at affordable rates.

Membership and Employee Discounts

Seniors who are members of certain organizations or employees of certain companies may be eligible for discounts with certain insurance providers. GEICO, for example, offers "Membership and Employee Discounts".

Other Discounts

Other potential discounts for seniors include accident forgiveness, low-mileage, and pay-per-mile programs. Additionally, some insurance companies offer discounts for safety features in the car, such as anti-lock brakes, airbags, and anti-theft devices.

Senior driving laws

California

In California, drivers aged 70 and above are required to renew their licenses in person every five years and take a vision and written test. The state also accepts requests from family members and others for the DMV to conduct unsafe driver investigations. Additionally, doctors who diagnose patients with conditions that may impair their driving ability, such as Alzheimer's disease, are required to report the diagnosis to the local health department, which then forwards it to the DMV.

District of Columbia

In the District of Columbia, drivers must renew their licenses every eight years and take a vision test each time. Online renewal is not permitted for drivers aged 70 and above.

Colorado

Colorado has a dedicated webpage answering questions about senior citizen driving laws for drivers over 65.

Other States

Other states have varying requirements for senior drivers, including different license renewal periods, vision test requirements, and restrictions on online or mail renewals. For example, some states offer a choice between a four-year or eight-year renewal period for drivers aged 70 and above, while others require in-person license renewals or mandate vision tests for drivers over a certain age.

It is important for older drivers to review the specific driving laws and requirements in their state and consult the local motor vehicles department or DMV handbook for the most up-to-date information.

Senior-specific insurance companies

Rias and Saga

These companies are specialist providers offering cover to over 50s. Their policies cover the same risks as mainstream insurers, but they might offer tailored extras that older drivers will value. This could include more generous levels of cover for driving abroad, reflecting the fact that retirees might spend more time driving overseas. They might also come with a higher age limit or even no age limit at all.

AARP auto insurance

AARP auto insurance from The Hartford includes extras that can be especially useful for seniors. For example, if policyholders are hurt in an accident, RecoverCare assists with transportation, dog walking, cleaning and lawn mowing. The company will also help policyholders find a repair shop after an accident, and if they use one of its 1,600+ approved shops, the repairs are guaranteed for as long as they have the vehicle. However, the cost of AARP auto insurance can increase rapidly in policyholders' 70s and 80s, so it is important to compare car insurance quotes to ensure seniors are not overpaying.

Geico

Geico has the lowest auto insurance rates for seniors of all ages, and it also offers a guaranteed auto insurance renewal program called the Prime Time contract. The program is available to drivers over the age of 50 who meet certain criteria and guarantees that their policy won't be canceled, even if they get multiple tickets. Seniors can expect to get average customer service from Geico.

State Farm

State Farm offers the best overall car insurance for most seniors. Its cheap rates, national availability, and dependable customer service make it a great choice. While State Farm is not the cheapest insurance provider for seniors, with the range of discounts the company offers for safe driving, safe vehicles and loyal customers, most budget-conscious seniors are likely to find State Farm more affordable than other providers. State Farm offers a multiproduct discount for those who also buy a home, condo, renters, farm, life or health insurance policy.

Frequently asked questions