Auto Insurance Premiums: Senior Citizens' Rates Explained

Senior citizens may experience an increase in their auto insurance premiums due to various factors, including age-related changes in vision, cognition, and motor skills, which can lead to a higher risk of accidents and more expensive claims. However, it's important to note that rates can vary, and there are ways for seniors to obtain reasonably priced coverage. Some companies offer discounts specifically for senior citizens, while others provide opportunities for mature drivers to reduce their costs through safe driving records, low mileage, and bundling policies. It's recommended to compare quotes from multiple providers to find the best rates and coverage options for senior citizens.

Senior citizens' auto insurance rates

According to Progressive, the cost of auto insurance in most states for seniors starts to rise at the age of 75. However, drivers in their 50s and 60s may pay less for insurance than at any other time in their lives. The Zebra reports that the 60 to 69 age group pays the second-cheapest car insurance rates, with an average annual cost of $1,315 or $110 a month.

There are ways for senior citizens to save on auto insurance. Some states mandate mature driver discounts for those who complete state-approved driving courses. Defensive driving courses can help seniors sharpen their skills, avoid crashes, and obtain insurance discounts. Bundling home and auto insurance, raising deductibles, and shopping around for the best rates can also help reduce costs.

When it comes to insurance providers, Nationwide is often the cheapest option for senior citizens, with an average annual cost of $1,402 for drivers aged 65 to 80. Other affordable options include USAA, Travelers, and GEICO. USAA is specifically for military members, veterans, and their families, and offers an average annual rate of $1,455 for seniors. Travelers is a good choice for low-mileage drivers and has the third-lowest senior car insurance rates. GEICO has below-average rates for seniors and offers a Prime Time contract for drivers aged 50 and above, which guarantees policy renewal.

Defensive driving courses

The AARP Smart Driver course, for example, is the nation's first refresher course specifically designed for drivers aged 50 and older. The course covers safe driving strategies, information on the effects of medication on driving, preventive measures to reduce driver distractions, and proper use of safety features and new technology found in cars today. After completing the course, 92% of participants surveyed redeemed their course certificate for a discount on their auto insurance.

Other defensive driving courses for senior citizens include DriveSafe Online, which is available in Washington State, and AAA's RoadWise course, which is an online course.

It's important to note that the availability and eligibility requirements for defensive driving courses and the associated insurance discounts may vary by state and insurance company. Senior citizens should consult their insurance agents to determine if they qualify for any discounts and to find out which courses are approved by their state and insurance company.

Discounts for seniors

While auto insurance rates tend to increase for senior citizens, there are still many discounts available to older drivers.

Defensive Driving Discounts

Many insurance companies offer discounts for senior citizens who take a defensive driving course. In some states, insurance companies are legally required to offer this discount to senior drivers who pass an approved course.

Low-Mileage Discounts

If you're driving less, you can benefit from a low-mileage discount. This is available for drivers who are on the road fewer miles each year.

Pay-Per-Mile Programs

While not a discount, pay-per-mile auto insurance programs can help seniors get lower rates. These programs have a base premium and then a premium derived from the number of miles driven each month.

Multi-Policy Discounts

You can often get a discount by bundling your auto coverage with another product, like homeowners, renters, or life insurance.

Safe Driving Discounts

Even if a provider doesn't offer a defensive driving discount, they may offer a safe driving discount. Some companies have telematics insurance programs that monitor driving habits and calculate discounts accordingly.

Accident-Free Discounts

Drivers who go a certain amount of time without getting into car accidents can benefit from an accident-free discount.

Multi-Car Discounts

If you have more than one car on your policy, you may qualify for a multi-car discount.

Safety Feature Discounts

If your car has safety features such as anti-lock brakes, airbags, daytime running lights, or anti-theft devices, you may qualify for a discount.

Other Discounts

You may also be able to get discounts for paying in full, payment by bank account, having a good driving record, or having a green vehicle.

Safe driving discounts

State Farm offers a Drive Safe & Save® program that provides discounts of up to 30% on auto insurance. The discount is based on how you drive, and you get an initial 10% discount just for signing up.

Nationwide also offers a safe driver discount for those with at least 5 years of safe driving. They also offer a usage-based insurance program called SmartRide, which provides an instant 10% discount when you sign up.

Progressive offers a similar program called Snapshot®, which measures driver behaviour using in-vehicle devices. If the data shows that you're a safe driver, you could earn a lower rate.

In addition to defensive driving courses, senior citizens can also save on auto insurance by maintaining a clean driving record, bundling policies, and taking advantage of other discounts that may be available, such as low-mileage discounts or discounts for driving a safer car.

Auto insurance companies for seniors

Auto insurance rates for senior citizens tend to be higher than for other age groups. This is because older drivers are statistically more likely to be involved in accidents and file insurance claims. However, this does not mean seniors have to pay excessive premiums. Comparing prices from different insurance companies can help seniors find the best deal. Here are some of the top auto insurance companies for seniors:

Nationwide

Nationwide is considered the best overall auto insurance company for seniors, offering budget-friendly rates, a low level of complaints, and several helpful add-on coverage features. These include accident forgiveness, gap insurance, new car replacement, and a vanishing deductible. Nationwide also offers pay-per-mile insurance, which is ideal for seniors who drive less.

USAA

USAA is a top choice for active military members, veterans, and their families, offering low-cost car insurance and good rates for drivers with various record problems. USAA provides accident forgiveness, new car replacement, rideshare insurance, and SR-22 and non-owner policies.

Travelers

Travelers is an excellent option for low-mileage drivers, including seniors who are retired or drive infrequently. They offer usage-based insurance, accident forgiveness, gap insurance, and a vanishing deductible. Travelers also have a very low level of complaints.

Erie

Erie insurance stands out for its high grade from collision repair specialists for its claims process. They offer competitive rates for senior car insurance and add-on coverage options like accident forgiveness, gap insurance, new car replacement, and a diminishing deductible. Erie's Rate Lock feature keeps your rate consistent unless you make specific changes to your policy.

Auto-Owners

Auto-Owners insurance is a good choice for new car owners, offering specialized coverage options. Their "purchase price guarantee" pays the original purchase price if the vehicle is totaled within the first two years, and their "total loss to a new automobile" option replaces your vehicle if totaled within 90 days of purchase. They also have good rates for senior drivers and a low level of complaints.

GEICO

GEICO is known for its competitive rates and is especially attractive for senior drivers with poor credit histories, as they typically face higher premiums. GEICO offers accident forgiveness, non-owner policies, and SR-22 filings. They also have a low level of complaints.

Progressive

Progressive provides some of the lowest rates for drivers with a DUI on their record and offers lower-than-average rates for seniors. They offer accident forgiveness, gap insurance, a vanishing deductible, and non-owner car insurance and SR-22 filings. Progressive also has a low level of complaints.

Tips for Seniors to Get the Best Auto Insurance Rates:

• Comparison shop with multiple insurance companies.
• Take a defensive driving course to qualify for discounts.
• Choose a car that is cheap to insure and has safety features.
• Reduce your mileage, especially if retired, to qualify for low-mileage discounts.
• Bundle your insurance policies for potential savings.
• Review your policy regularly and drop any coverage you no longer need.

Frequently asked questions