Auto Insurance: Elderly Premiums And Expensive Coverage

Car insurance rates for seniors vary depending on age, driving history, location, and the insurance company. While some companies offer discounts for senior citizens, others may charge higher premiums due to increased risks associated with older drivers. It's essential to compare quotes and consider factors like customer service, coverage options, and discounts to find the best insurance plan for elderly individuals.

Senior drivers can save money by taking a defensive driving course

Many insurance companies offer discounts to senior drivers who complete defensive driving courses. These discounts can last for up to three years and are often mandated by state law. For example, Florida law requires that seniors aged 55 and over receive a discount of up to 10% on their insurance premiums upon completion of an approved defensive driving course. Similar discounts are offered by insurers such as State Farm, Nationwide, GEICO, and Allstate.

The cost of a defensive driving course typically ranges from $15 to $100, with most online courses costing between $20 and $40. This investment can pay for itself through insurance discounts. For example, a $40 course that results in a 10% discount on a $105 monthly insurance premium would save the driver almost $170 in the first year alone. Over three years, the savings could exceed $500.

In addition to the financial benefits, defensive driving courses can also help senior drivers improve their skills, increase their reaction time, and make them safer on the road. This can lead to fewer accidents and a reduced risk of injury, which is especially important for older adults who are more prone to serious injuries in the event of a crash.

When choosing a defensive driving course, it is important to select one that meets the requirements of your insurance company and is fully certified by the relevant authorities. It is also worth considering whether an online or in-person course better suits your learning preferences and schedule.

Auto insurance rates increase for seniors due to a higher risk of accidents and more serious injuries

The risk of being killed or injured in a traffic accident increases as drivers get older. This is supported by data from the Insurance Institute for Highway Safety (IIHS), which reports that fatal crashes increase notably between the ages of 70 and 74 and are highest among drivers aged 85 and older. The IIHS also found that, despite there being more senior drivers today than in the 1990s, there has been a 22% decrease in accidents resulting in senior fatalities. This decrease may be due to improvements in vehicle safety technology and the fact that seniors are driving fewer miles, especially at night.

The physical changes that come with aging, as well as the potential side effects of medications, can impair driving skills and lead to more accidents. According to the Centers for Disease Control and Prevention (CDC), older adults are more prone to serious injuries in the event of an accident, which can result in costly hospital bills and insurance claims. This further contributes to the increase in insurance rates for seniors.

While auto insurance rates may increase for seniors due to these factors, there are ways to mitigate the costs. Taking a defensive driving course, maintaining a safe driving record, and comparing rates from different insurance providers can help seniors find more affordable coverage. Additionally, insurance companies often offer discounts for seniors who have completed driving courses, bundled policies, or opted for paperless billing.

Geico is the cheapest auto insurance for seniors

Car insurance premiums tend to increase for seniors due to a variety of factors. One possible factor is that older drivers may have a higher risk of being involved in accidents than younger drivers. Additionally, older adults are more prone to serious injuries in the event of an accident, which can lead to expensive hospital bills and greater costs for insurance companies.

Despite this, GEICO offers the cheapest car insurance for seniors, with an average annual rate of $1,463 for a full-coverage policy and $763 for a minimum-coverage policy. GEICO also offers a guaranteed auto insurance renewal program called the Prime Time contract, which is available to drivers over 50 who meet certain criteria. This program ensures that your policy won't be canceled, even if you get multiple tickets.

GEICO's rates are especially beneficial for seniors as car insurance costs tend to rise with age. On average, car insurance for seniors costs $1,315 per year, or $110 per month. This amount can vary depending on the driver's age, with 65-year-olds paying $1,646 per year for minimum coverage and $2,057 per year for full coverage. The cost increases further as drivers age, with 75-year-olds paying 13% more than 65-year-olds for full coverage, and 85-year-olds paying 44% more.

GEICO's low rates and guaranteed renewal program make it an attractive option for seniors seeking affordable car insurance. However, it's important to note that GEICO's customer service and range of products are rated as average when compared to its competitors.

State Farm is the best auto insurance company for seniors overall

State Farm offers emergency road service and rental reimbursement. It also has discounts for seniors, including an accident-free discount, a defensive driving course discount, a multi-policy or bundling discount, and a discount for anti-theft device-equipped vehicles.

State Farm also offers a Good Student Discount where you can save up to 25% if your teen driver gets good grades. The savings may last until your teen turns 25. There is also a Driver Training Discount where you can qualify for a discount if all the operators of your vehicle under the age of 21 complete an approved driver education course.

State Farm has a strong reputation in consumer studies and an A++ financial strength rating from AM Best.

Seniors can save on auto insurance by bundling policies

Additionally, seniors can take advantage of other discounts offered by insurance companies. For instance, seniors who complete a state-approved defensive driving course may be eligible for a discount. Organizations such as AARP, AAA, and The National Safety Council (NSC) offer these courses, which can help reduce insurance premiums. Insurance companies like GEICO offer discounts for retired government employees and drivers over 50 who complete defensive driving courses.

When shopping for auto insurance, seniors should compare rates from multiple providers and ask about available discounts to find the best deal.

Frequently asked questions