Slash Your Auto Insurance: Everything You Need to Know About Getting Lower Car Insurance for Seniors

As we get older, auto insurance can become an increasingly large expense. In most states, even senior drivers are required to have adequate auto insurance, which means this isn’t an expense you can simply drop or skip out on. This can take a toll on seniors with limited income sources. However, it is possible to find lower car insurance for seniors if you know some of the effective ways to save money on car insurance.

Plenty of thrifty, deal-savvy seniors have found some clever hacks and wise workarounds to the car insurance rate dilemma. And because sharing is caring here at SeniorAssistance.Club, we’d like to offer up everything you need to know about lower car insurance, as well as 10 tips to get low-cost car insurance for seniors.

Average Cost of Car Insurance Rates for Senior Citizens

Car insurance premiums tend to go up for senior drivers because of the perceived added risk that older drivers have behind the wheel. On average, a 65-year-old adult pays $1,646 annually for a minimum-coverage policy and $2,057 annually for full coverage. However, this is likely to go up as you age. By the time you reach the age of 85, you can expect to pay an average of $2,371 for minimum coverage and $2,989 for full coverage.

This is assuming all the ideal factors are in place: you’re in good health, you’ve never been in an accident in the past, and you’ve never had a prior incident on the road. It’s true that drivers who have had tickets for traffic violations or who have been at fault in vehicular accidents are more likely to pay higher insurance premiums compared to a driver with a clean record. This means that, if you’ve caused a car accident in the past and are now a senior driver, you may find that premiums are around 44% higher than the average coverage.

Based on annual car insurance rates for seniors who have a record of prior incidents, premiums can increase depending on the type of incident that occurred. Full-coverage policies can cost an average of $3,193 for those who were found speeding, while policies average at $4,217 annually for those who have caused a car accident.

Best Low-Cost Car Insurance for Seniors

Car insurance premiums can vary depending on which provider you choose. That’s why we recommend exploring different options and shopping around for quotes. You may find that you qualify for certain types of financial aid senior discount for car insurance, which can allow you to get a price that’s below the average. Here are some of the best low-cost car insurance options for seniors.

Geico

Why It’s Good: Geico’s average minimum and full-coverage policies are generally much lower than all other car insurance providers for seniors. It also offers a Prime Time contract, which is an auto insurance renewal program that guarantees a certain rate for drivers older than 50 years old. In it, your policy won’t be cancelled even if you receive multiple traffic violations after getting coverage.

Average Annual Car Insurance Rate: Starts at $763 annually for liability insurance.

Pros:

• Has one of the lowest rates for the average senior drivers.
• Offers contracts that make auto insurance renewals easier.
• Full-coverage policy is cheaper than the average cost from car insurance policies for seniors.

Cons:

• Rated to have average customer service, compared to other insurance providers.
• Fewer insurance products, so seniors should check other insurers if they’re interested in saving on insurance by purchasing bundle deals.
• Not the cheapest option if you were at fault for an accident in the last 5 years.

State Farm

Why It’s Good: Though not the cheapest in terms of low-cost car insurance for seniors, State Farm has all the good qualities you’re looking for in a car insurance package while still maintaining affordable rates. It also offers plenty of discounts for senior drivers who meet certain qualifications.

Average Annual Car Insurance Rate: Starts at $1,075 annually for liability insurance.

Pros:

• Discounts available for drivers who have clean records, cars with certain safety features, and seniors who drive less than 7,500 miles annually.
• State Farm’s Drive Safe & Save program provides rewards for drivers who enroll in the program and show good driving habits.
• Offers loyalty discounts for those who purchase other insurance packages such as health insurance, life insurance, home insurance, etc.

Cons:

• Discounts that make State Farm a popular choice for seniors may not be available to those with a history of car accidents or don’t qualify for any discount packages.
• Based on cheapest insurance premiums by state, State Farm is only the cheapest option in a few states.
• Doesn’t offer coverage options like accident forgiveness or new car replacement.

Travelers

Why It’s Good: Ideal for seniors who want a way to save money on car insurance as well as home insurance. Despite its higher auto insurance rate, you may be able to get a good deal on home and auto insurance when you get both from Travelers.

Average Annual Car Insurance Rate: Starts at $1,925 annually for liability insurance.

Pros:

• Ideal for seniors who are also homeowners looking for home insurance.
• Has available discounts for qualified senior drivers to get more affordable rates.
• Offers discounts for policy holders who get new-car replacement coverage, roadside assistance, and rideshare coverage.

Cons:

• Has mixed reviews in terms of customer service.
• Their home insurance doesn’t have a lot of bells and whistles, so the discount from bundle deals may not be worth it.
• Rates are still higher than most, so you might find better prices that also include the add-ons you need.

Allstate

Why It’s Good: While it’s generally the most expensive car insurance provider on this list, it may be worth getting for its coverage, discounts, and customer service. This is one of the better options for seniors who want personalized services.

Average Annual Car Insurance Rate: Starts at $3,842 annually for minimum coverage.

Pros:

• Allstate provides better personalized service for its premium rates.
• Offers features like accident forgiveness and vanishing deductibles.
• Rideshare insurance available for seniors looking to work for Uber and Lyft.

Cons:

• Customer service isn’t better than other providers despite its higher price tag.
• Not an ideal option for people who prefer cheaper rates over personalized packages
• Starting rates are twice the starting rate of some of the cheaper options on this list.

Nationwide

Why It’s Good: Nationwide has a pay-per-mile plan that could benefit senior drivers with low mileage. Premiums are calculated on a per-mile basis, making it the cost-effective solution for seniors who rarely drive.

Average Annual Car Insurance Rate: Starts at $1,611 annually for minimum coverage.

Pros:

• Nationwide’s SmartMiles pay-per-mile options may be the practical and cost-effective solution for those with below-average mileage.
• Offers a SmartRide usage-based program for drivers with a good record.
• Drivers have the option to add additional accident forgiveness, new car replacement, and vanishing deductible options.

Cons:

• Not a good option for senior drivers with a history of at-fault accidents and DUI violations.
• Doesn’t cover rideshare insurance, so it’s not an option for seniors interested in working for ridesharing apps.
• Not all states have both auto and motorcycle insurance coverage.

USAA

Why It’s Good: The USAA offers some of the lowest insurance rates on the market. However, this is only available to seniors who have served in the military or are the parent or spouse of someone in the military.

Average Annual Car Insurance Rate: Starts at $1,299 annually for minimum coverage.

Pros:

• Offers senior drivers discounts for those with good driving records for at least five years.
• Seniors can receive discounts for low-mileage use in their SafePilot program.
• Includes rideshare insurance for seniors who want to make extra income on ridesharing companies.

Cons:

• Not everyone is qualified for USAA car insurance, as you’ll need to be affiliated with the U.S. military
• Because of its low price, there aren’t many other discounts available to seniors.
• Bundling discounts for home and car insurance as of writing is at 6%, which may not be worth it to some individuals.

10 Tips on How to Save Money on Car Insurance for Seniors

Here are some tips that can help you save money on your auto insurance premiums. Take a look and see which ones apply to you and can help you go a long way towards savings and better coverage.

Step 1: Update Your Average Mileage with the Insurer

The average distance when it comes to transportation for senior citizens is fairly lower than that of younger people. As a senior, you're most likely not commuting or travelling long distances every day for essentials and would tend to travel to areas close to you. One of the fastest to get lower car insurance for seniors is by sharing your average mileage with your insurer.

For insurance providers, the less you’re on the road, the lower your chances of getting in an automobile accident. This puts you at a lower risk, as the fewer miles averaged each year on your car equates to less money required on the policy.

If you’re a senior citizen that drives less frequently, you can use your car’s mileage to your advantage when shopping for auto insurance. Consider updating your insurer once or twice a year. You may be driving fewer miles than you think!

Step 2: Consider Driving Lessons

One of the best ways to lower car insurance for seniors is by taking a driving class. Many regions offer classes geared toward the senior driver. These classes help to refresh basic skills and offer unique guidelines for older drivers.

Every insurance company has specific classes that are accepted for a discount. Be sure to check with your insurer about their rules before signing up for a class.

Step 3: Get Additional Safety Features

Certain safety features, including anti-theft devices, can improve your insurance cost. All insurers look at the bottom line. If a car is stolen or totaled, they must pay out a replacement amount. By adding safety features to the car, there are fewer chances of a major loss.

Anti-theft devices make it harder for the car to be stolen. Some devices are designed to make recovery easier by the authorities and insurance companies. Consider the best options for your vehicle. You’ll enjoy peace of mind and are likely to see your rates drop.

Step 4: Purchase a Safety-Proven Car

If you're in the market for a new car, consider a model that has an established safety rating. Every new car goes through its own rating system to verify safety features and testing results. Buying a car with a solid record for safety is a perk for insurers.

Airbags, backup cameras and other features will tell the insurer that the car can avoid many accidents and injuries. Simply disclose every feature included on the car before submitting an insurance application.

Step 5: Get a Club or Organization Discount

Your affiliations can get you a lower rate when you present your club card. AARP and AAA are just two of the groups that can give you a discounted rate. These organizations are considered reputable, which means that your affiliation with them is a positive reflection on your reputation.

Look through your club's guidelines to find the best deal. You might work with a club representative who paves the way toward a good rate. Exploring every option will only benefit you in the end.

Step 6: Try Diagnostic Tools

The latest trend in the auto-insurance world is diagnostic tools. You can use an app on your phone to record your driving time and speed. Some insurers install a device on your car that reports its activities.

If you're a good driver, the diagnostic tools simply back up your stellar skills. Your rates should drop accordingly. During an accident, those tools may also absolve you of any blame in certain cases.

Step 7: Improve Your Credit Score

A secret that's often overlooked by most consumers is the relationship between auto coverage and credit scores. Insurers link a high credit score with responsible habits.

By improving your score, you show good faith with your personal commitments. This responsible status equates to better rates on your insurance. There's less risk of a car accident in your future

Improve your credit score by paying bills on time and lowering your debt. Every effort can pay off with lower insurance rates. If you need help cleaning up your credit report, consider working with a company to help you achieve the score you deserve.

Step 8: Maintain a Good Driving Record

Simply maintaining a good driving record is reason enough to lower auto insurance rates. If you've driven without penalties for the past five years, for instance, many insurers will reward you with a lower rate.

Insurers typically look for moving violations instead of parking tickets. Ideally, avoid both types of violations. A solid record on the road might also extend to your long-term history. Drivers with few or no violations over several decades are bound to have lower rates.

Step 9: Bundle Several Cars on One Policy

Insuring in bulk will typically give you a better deal. Once you find an insurer that gives you a reasonable deal, add all of your cars onto the policy. Spouses, grown children and even grandchildren might be candidates for bundled policy.

You'll end up with a multiple-car discount on the policy. If everyone maintains a safe record, the discount should stand through the various renewals.

Step 10: Compare Quotes

Every insurer provides varying quotes for their potential customers. They base the quotes off of proprietary formulas and other data. In reality, these variations are perks for senior drivers.

Shop around for the best quote. Contact a handful of insurers and compare all of their policies. Verify that the quotes include everything you need, such as collision coverage and liability amounts.

Make an informed decision from these quotes. You'll know for sure that you're getting the best deal for your situation.

Frequently Asked Questions About Getting Lower Car Insurance for Seniors

Q: At what age does car insurance start to go up?

A: Based on surveys done on insurance holders, car insurance rates begin to increase at the age of 55. From the age of 65 to 75, expect your premiums to increase by 13%, and then up another 28% until you reach the age of 85. This is because of the perceived higher risk that older drivers have.

Q: Why is car insurance more expensive for seniors?

A: Car insurance is actually highest for teenagers and younger adults, with young drivers getting high insurance rates until they turn 25. After that, rates tend to go down (assuming there are no accidents made that spike up premiums) until a driver reaches their mid-fifties. After that, rates tend to increase once more. This is because, statistically, older adult drivers have a higher crash death rate. In many cases, this is due to age-related conditions that can affect physical and visual skills needed for driving.

Q: Should I get minimum or full-coverage insurance?

A: Minimum insurance is also called liability-only insurance, which means your insurance payout only covers the injury and damage to others that you’re obligated to pay for. Full-coverage insurance policies, on the other hand, cover both your liability and additional coverage to pay for any injuries and property damage to yourself. Liability coverage is cheaper, but full coverage also takes care of the additional costs that you would have to pay out-of-pocket for, like your own hospital fees and repairs to your car. It ultimately depends on your financial situation which is more practical, but keep in mind that, if you took out a loan for a car, most lenders will require you to take out a full-coverage policy.

Assistance Club Summary

The #1 Take Away: Take action to get the best-priced auto insurance.

Driving as you get older is a great way to stay independent and mobile. It helps to know that you’re driving safely and saving money at the same time.