Auto Insurance For Senior Drivers: What's The Cost?

Auto insurance for older drivers can be a costly affair, with premiums rising as one ages. This is because insurance companies consider older drivers to be riskier to insure due to age-related changes in health and reflexes, making them more prone to accidents. The cost of auto insurance for older drivers also depends on factors such as location, driving record, and the insurance company. While some companies offer discounts for senior drivers, others have higher premiums for this age group. Staying informed about the various options and discounts can help older drivers find ways to save on their auto insurance.

Car insurance for older drivers by state

Car insurance rates for older drivers vary by state, and there are a number of factors that influence the cost of insurance. The average cost of car insurance for a 65-year-old is $1,740 a year, and for a 75-year-old, it increases to $2,008 a year.

In some states, car insurance is mandatory, and in others, drivers must pay for any damage they cause in an accident. Car insurance rates for seniors start to increase at around 65, as insurers see older drivers as more of a risk. Statistics show that seniors are more accident-prone than younger drivers, and older drivers also suffer more severe injuries and fatalities in car accidents, leading to larger insurance claims.

The cost of car insurance for older drivers also depends on their gender, with men typically paying more than women due to riskier driving habits. On average, a 20-year-old male driver pays $3,943 for full coverage car insurance, while a female driver of the same age pays $3,537 for the same coverage.

Some states mandate mature driver discounts for seniors who complete approved driving courses. Organizations such as AARP, AAA, and The National Safety Council (NSC) provide these classes, which can result in discounts of 5% to 15% on car insurance premiums.

• Alabama: GEICO
• Alaska: State Farm
• Arizona: GEICO
• Arkansas: GEICO
• California: Progressive
• Colorado: GEICO
• Connecticut: GEICO
• Delaware: State Farm
• Florida: GEICO
• Georgia: GEICO
• Hawaii: Travelers
• Idaho: State Farm
• Illinois: State Farm
• Indiana: State Farm
• Iowa: State Farm
• Kansas: GEICO
• Kentucky: State Farm
• Louisiana: State Farm
• Maine: State Farm
• Maryland: GEICO
• Massachusetts: GEICO
• Michigan: State Farm
• Minnesota: State Farm
• Mississippi: State Farm
• Missouri: State Farm
• Montana: State Farm
• Nebraska: State Farm
• Nevada: State Farm
• New Hampshire: State Farm
• New Jersey: GEICO
• New Mexico: State Farm
• New York: GEICO
• North Carolina: State Farm
• North Dakota: State Farm
• Ohio: State Farm
• Oklahoma: State Farm
• Oregon: State Farm
• Pennsylvania: GEICO
• Rhode Island: State Farm
• South Carolina: State Farm
• South Dakota: State Farm
• Tennessee: State Farm
• Texas: GEICO
• Utah: State Farm
• Vermont: State Farm
• Virginia: State Farm
• Washington: State Farm
• West Virginia: State Farm
• Wisconsin: State Farm
• Wyoming: State Farm

How age affects car insurance rates

Age is a significant factor in determining car insurance rates, with older drivers often facing higher premiums. This is primarily due to insurance companies perceiving older drivers as riskier to insure due to age-related changes in health and cognitive abilities, which can increase the likelihood of accidents and more severe injuries. Let's delve into the details of how age influences car insurance rates.

Teenage Drivers

Teenage drivers, especially males, tend to pay the highest insurance rates. A 17-year-old male typically pays significantly more than a 25-year-old male for the same policy. This disparity is because teenage boys have a much higher risk of auto accidents than their female counterparts, leading to higher insurance rates.

Young Adults (20-25 years old)

While motorists in their early 20s are considered less risky than teenagers, they are still viewed as inexperienced by insurers and are likely to pay expensive premiums. The average cost of full coverage car insurance for a 20-year-old is $3,739 per year, which is substantially higher than the national average.

Middle-Aged Drivers (45-60 years old)

Drivers between the ages of 45 and 60 often benefit from lower insurance rates. This is because they have extensive driving experience and are less likely to suffer from hearing or vision impairments that could impact their driving abilities. As a result, insurance companies offer more competitive rates to this age group.

Seniors (65 years old and above)

Car insurance rates for seniors start to increase around age 65 and continue to rise with age. The average cost of car insurance for a 65-year-old is $1,740 per year, while it increases to $2,008 for a 75-year-old. This surge in premiums is attributed to statistics indicating that seniors are more prone to accidents and severe injuries in the event of a collision.

Additionally, age-related health changes, such as declining vision, cognitive abilities, and physical fitness, along with the side effects of medications, can impair driving skills. As a result, insurance companies view senior drivers as a higher risk, leading to higher insurance rates.

Ways to Mitigate the Impact of Age on Insurance Rates

Regardless of age, there are several strategies that drivers can employ to reduce the impact of age on their insurance rates:

• Compare Insurance Providers: Shopping around and comparing rates from multiple insurance companies can help you find the most competitive rates.
• Maintain a Clean Driving Record: Keeping a clean driving record, free of accidents, tickets, or violations, will generally result in lower insurance rates.
• Take Advantage of Discounts: Various discounts are often available for seniors, such as those offered by organizations like AARP, AAA, and The National Safety Council (NSC). These organizations provide mature driver courses that can lead to significant discounts on insurance premiums.
• Improve Your Credit Score: Building and maintaining a good credit score can positively impact your insurance rates, as insurers may offer lower premiums to individuals with strong credit histories.
• Bundle Insurance Policies: Combining your auto insurance with other policies, such as homeowner's or renter's insurance, can often lead to substantial discounts.
• Adjust Coverage and Deductibles: Opting for minimum coverage or increasing your deductible can lower your monthly premiums. However, this also means you'll pay more out of pocket in the event of an accident.

How to save on car insurance for older drivers

Car insurance rates for older adults tend to be higher than those for middle-aged drivers, as older individuals are considered to have an increased risk of being in an accident and are more prone to injuries that can lead to costly medical expenses. However, there are several ways older drivers can save on their car insurance:

Take a driving course:

Many states offer mandatory mature driver discounts for seniors who complete state-approved driving courses. Organisations such as AARP, AAA, and The National Safety Council provide these classes, which can lead to significant discounts on insurance policies.

Maintain a safe driving record:

Insurance companies often reward drivers for having an accident-free history. For example, Geico offers a discount of up to 22% on most coverages if the driver has been accident-free for five years. Keeping a clean driving record, free of crashes, tickets, or violations, will help qualify for lower rates.

Maintain vehicle safety:

Equipping your vehicle with safety features can lead to further savings. This includes airbags, anti-lock brakes, anti-theft systems, and anti-collision technology. Some insurance companies offer discounts for specific safety equipment, so it's worth checking with your provider.

Bundle your insurance policies:

Most insurance providers offer discounts if you open two or more policies with them. For example, bundling your auto and home insurance through a single provider can result in an average savings of 7% on your auto policy.

Pay your policy in full:

Paying your insurance policy in full, instead of making monthly payments, can sometimes help reduce the overall cost.

Choose your location wisely:

Car insurance rates vary from state to state. If you're planning to move, be sure to check the insurance rates for your new location.

Shop around:

Comparing rates from different insurance companies is always a good idea. Rates can vary significantly between providers, so getting multiple quotes can help you find the best deal.

Increase your deductible:

By choosing a higher deductible, you can reduce your insurance premium. Just make sure you can comfortably cover the higher deductible in the event of a claim.

Choose a car that's cheap to insure:

Insurance rates depend on the type of car you drive. When shopping for a car, get insurance quotes for different models and choose a vehicle that is inexpensive to repair and replace and has good safety ratings.

Take advantage of low-mileage discounts:

If you're driving less, let your insurer know. Many companies offer discounts for motorists who drive below a certain number of miles per year. You may also want to consider pay-per-mile insurance, where premiums are based on your actual mileage.

Car insurance discounts for seniors

While auto insurance rates typically increase for older drivers, there are still ways for seniors to save money on their premiums. Here are some of the most common car insurance discounts available for seniors:

Defensive Driving Discount

Seniors can often get a discount on their auto insurance by taking a defensive driving course. These courses can be taken online or in person and typically cost around $20. The eligible age and discount amount vary by state, but this discount is usually available to drivers over 50 or 55.

Low-Mileage Discount

If you're driving less, perhaps due to retirement, you may be able to get a low-mileage discount on your auto insurance. This discount is typically available for drivers who drive fewer miles per year.

Pay-Per-Mile Programs

While not a discount, pay-per-mile auto insurance programs can help seniors reduce their overall insurance costs. These programs charge a base premium plus a per-mile rate, so they can be a cost-effective option for seniors who don't drive often.

Multi-Policy or Bundling Discount

Seniors who have multiple insurance policies, such as home, renters, life, or umbrella insurance, can often get a discount by bundling their policies with the same company.

Accident-Free or Good Driving Discount

Seniors with a clean driving record, free of accidents or violations, can often get a discount on their auto insurance. This discount is usually available to drivers who have had no accidents or violations in the past three to five years.

Retired Government or Military Discount

Some insurance companies offer discounts to retired government or military personnel. This discount is typically available to seniors who can provide proof of their retired government or military status.

Membership or Employee Discount

Seniors who are members of certain organizations or who are employed in certain businesses or occupational groups may be eligible for a discount on their auto insurance.

Other Discounts

Other discounts that may be available to seniors include discounts for anti-lock brakes, anti-theft devices, safe driving, and green vehicles.

Safety tips for older drivers

While many older adults can drive safely into their 80s and beyond, it's important that they—and those who care for them—evaluate their needs to keep them safe on the road. Here are some safety tips for older drivers:

• Buckle up: Always wear a seatbelt. If your seatbelt is uncomfortable, adjust the shoulder mount or buy a shoulder pad that slips over the belt.
• Mute your cell phone: Talking or texting while driving is distracting. Leave your cell phone on silent and do not answer it while driving.
• Don't eat while driving: If you need to eat or drink, pull into a safe area and finish your refreshments before getting back on the road.
• Don't drink and drive: As people age, their ability to process alcohol changes. Even one drink may make older drivers unsafe on the road, especially when mixed with medication.
• Limit distractions: Listening to music or audiobooks, or chatting with passengers, can distract some older drivers. If this applies to you, turn off the sound and avoid conversations in the car.
• Keep a safe distance: Make sure there is enough space between your car and the cars in front and behind you.
• Drive during daylight: Older adults, even those with good vision, can experience visual problems at night. Darkness and glare from headlights make it harder to see.
• Avoid bad weather: Rain, snow, fog, and other hazardous conditions can be dangerous for older drivers. Wait for bad weather to clear before driving, or use public transportation or a car service.
• Choose safer routes: Avoid highways with ramps, and making left turns on highways or busy roads. Go out of your way to avoid difficult intersections and turns.
• Drive during off-peak hours: Peak rush hour traffic can be stressful for older drivers. Try to drive when traffic is lighter.
• Don't drive when tired: Don't drive if you're stressed or tired. Only drive when you're well-rested and calm.
• Know your medications: Some medications can make you drowsy and less alert, or affect your reaction time. Review your medications with your doctor or pharmacist to see if they could affect your driving.
• Consult a driving specialist: A driving rehabilitation specialist can evaluate your muscle strength, flexibility, coordination, reaction time, judgment, and decision-making skills. They may recommend ways to drive more safely, such as special equipment or training.
• Consider new vehicle technologies: Some features that can help reduce crashes and make driving less stressful for older adults include forward collision warning, automatic crash notification, parking assist with a rear-view display, self-parking systems, and navigation assistance.

Frequently asked questions