Do Seniors Pay More for Auto Insurance?

Seniors often wonder if their age will lead to higher car insurance rates.

Seniors typically pay more for auto insurance than younger drivers, with rates beginning to increase around age 65 due to heightened risk factors associated with aging. However, these rates can be offset by factors like driving experience, low mileage, good credit score, vehicle type and location, along with various discounts available to seniors.

There are many factors that affect car insurance rates for seniors beyond just age. 

How Much Does Car Insurance Cost for Seniors?

On average, seniors pay about 13% more for car insurance than middle-aged drivers. For example, the average annual rate for a 30-year-old female driver is around $1,569, while the average for an 80-year-old female is $1,766. 

Rates tend to start increasing around age 65, with increases of 6-12% every 5 years:

• Age 65: $1,405 
• Age 70: $1,492 (6% increase)
• Age 75: $1,643 (17% increase) 
• Age 80: $1,838 (31% increase)
• Age 85: $2,008 (43% increase)

So while rates are moderately higher at age 70, they really start to climb more significantly after age 75. By age 85, rates are 43% higher on average than at age 65.

What Factors Affect Car Insurance Rates for Seniors?

There are several key factors that impact what seniors pay for car insurance.

Age

Age is a major rating factor for auto insurance companies. Rates begin increasing around age 65 because insurance companies associate this age range with higher risk. 

The risk increases due to age-related physical and mental changes that can make driving more challenging, such as declining vision, reduced flexibility and slower reaction times. Also, seniors are more susceptible to severe injuries in a crash.

Driving Experience

Extensive driving experience can help offset some of the rate increase tied to age. Most seniors have many years of driving under their belts, which insurance companies consider.

Health

Certain health conditions that can affect driving ability, such as Alzheimer’s disease, sleep apnea and Parkinson’s disease, may increase rates. Seniors should inform their insurer of any conditions that could impair driving.

Mileage

Seniors who drive fewer than 7,500 miles per year may qualify for a low-mileage discount. This helps make up for some of the age-related increase.

Credit Score

Most states allow the use of credit-based insurance scores. Maintaining a good score saves seniors money.

Vehicle Type

Insurers look at the vehicle make, model and age. Older cars cost less to insure. Sports cars and luxury vehicles have higher rates.

Location

Urban areas cost more to insure than rural zip codes. Also, some states have higher average car insurance rates.

What Are the Different Types of Car Insurance Coverage Options Available to Seniors?

Seniors can purchase standard auto insurance coverages:

• Liability covers injury or damage that the policyholder causes to others. Required in most states.
• Collision pays to repair or replace the policyholder’s car after an accident. 
• Comprehensive covers damage from theft, vandalism, weather, animals, fire and other non-collision events.
• Uninsured/underinsured motorist pays for injuries caused by a driver with no or minimal insurance. 
• Medical payments covers medical bills for the policyholder after an accident. 

Many insurers also offer additional coverage options such as new car replacement, accident forgiveness, and rideshare coverage. Seniors should discuss their needs with an agent.

Which Are the Best Car Insurance Companies for Seniors?

Insurance Company	Average Annual Rate (Seniors)	Features
Geico	$1,197	Lowest rate in analysis
USAA	$1,299	Limited to military members
Auto-Owners	$1,633	Excellent claims service
Erie	$1,525	Great repair service
State Farm	$1,423	Low complaint levels, large insurer

Remember to always compare quotes from multiple insurers to find the best rate for your individual situation.

Some top picks for cheap car insurance for seniors include:

• Geico: Offers an average annual rate of $1,197 for seniors, the lowest in our analysis. 
• USAA: Averages $1,299 per year for seniors but is only available to military members.
• Auto-Owners: Rates average $1,633 per year. Excellent claims service.
• Erie: Average annual rate of $1,525 with great repair service. 
• State Farm: Large insurer with low complaint levels and senior rates averaging $1,423.

When comparing companies, seniors should get quotes from multiple insurers to find the best rate for their individual situation.

What Are Discounts Available to Seniors for Car Insurance?

Common discounts seniors can look for include:

• Good driver: For a clean driving record, often 3+ years with no violations.
• Defensive driving: For completing an approved course, typically aimed at drivers 50+.
• Low mileage: Drive less than a set number of miles per year, like 5,000.
• Mature driver: Just for being age 55 to 65 years old.
• Multi-policy: Bundle home or life insurance with auto.
• Paid in full: Pay full 6- or 12-month premium upfront rather than monthly. 
• Paperless: Go electronic with billing and policy documents.
• Anti-theft devices: Have qualifying devices installed, like car alarms.
• Safety features: For newer safety tech like blind spot monitoring or rearview cameras.

Ask each insurer about discounts to maximize savings. Just one discount can potentially reduce the rate increase related to age.

What Are the Ways to Lower Your Car Insurance Costs if You’re a Senior?

Below are some key ways seniors can try to offset the higher rates that often come with age:

• Shop around frequently for better rates as you get older
• Take a defensive driving course for a discount 
• Ask about any discounts you may qualify for 
• Maintain a good driving record with no accidents or violations
• Reduce mileage driven annually to get a low mileage discount
• Pay premiums in full upfront to save over paying monthly
• Ask about a mature driver discount from age 55-65
• Consider raising deductibles to reduce collision and comprehensive premiums
• Drop optional coverages if trying to find the cheapest rate

Making one or more of these adjustments can help minimize rate hikes related to your age.

What Is the Claims Process Like for Seniors With Car Insurance?

The claims process for seniors is the same as for any policyholder. If you’re in an accident, take these steps:

• Report the accident to your insurer promptly
• Provide details on what happened 
• Cooperate with any investigation and gather supporting docs
• Take your car to an approved shop for repair estimate 
• Get a rental if you have rental coverage
• Review estimate and point out any missed damage
• Pay deductible when you pick up your repaired car

Communicate with your claims adjuster and follow their instructions. Ask questions if you’re unsure about anything in the process.

How Can Seniors Get the Best Customer Service From Their Car Insurance Company?

Good customer service is critical when you rely on a company to protect you in an accident. Seniors can get great service by:

• Choosing a company known for customer satisfaction
• Working with a local agent who can explain coverage
• Being proactive by calling with questions 
• Learning how to access online account tools
• Providing prompt notice of any claims
• Communicating any concerns immediately
• Understanding billing and payments 
• Providing all details needed to process claims smoothly
• Giving feedback to improve service levels

Solid customer service can make a real difference in the insurance experience for seniors.

Conclusion

While seniors do often pay more for car insurance compared to younger drivers, there are many ways to minimize the rate increases that tend to come with age. Shopping around, maintaining a clean record, earning available discounts and adopting safe driving habits can help seniors find affordable rates. Comparing options from the car insurance companies known for good service and senior savings is the best approach to get the right protection at a reasonable price.

Frequently Asked Questions