The auto insurance provider you used in your 40s and 50s may not always be the greatest option for you as you get older. To identify the top car insurance providers for drivers 65 and older, researchers looked at coverage options and costs from major insurers.
How Much Does Seniors’ Auto Insurance Cost?
The difference in cost between the least and most costly of the insurance firms researchers looked at for senior auto insurance is $1,188.
According to the available data, Geico offers the lowest vehicle insurance for senior citizens ($1,197 on average per year). Farmers is the most expensive ($2,385 on average annually).
An 80-year-old female’s annual senior auto insurance premium is $1,766 on average. The investigations revealed that this is 13% more expensive than the typical rate for a 30-year-old female competent driver ($1,569 annually).
They also looked at rates for senior drivers when they transition from one age group to the next. You’ll probably discover that auto insurance prices begin to trend increasing around the age of 65, between the ages of 65 and 85.
According to the estimates, after you turn 65, you may anticipate an increase of 6 to 12 percent per five years. The rate increase for auto insurance from 65 to 70 years old is about 6%. Costs rise throughout time, reaching a comparatively high cumulative increase of 43% at age 85 compared to rates at age 65.
Why Do Seniors’ Auto Insurance Rates Rise?
Age is a factor that car insurance companies use when determining premiums because some age groups are more prone than others to be involved in accidents and file claims. When you average vehicle rates by age, generally speaking, teenagers and seniors pay more for car insurance than other drivers.
As soon as you turn 65, your auto insurance premiums start to rise since insurance companies believe that this group of elderly citizens is more likely to be involved in accidents and file claims. According to the Centers for Disease Control and Prevention (CDC), drivers aged 65 and older are more than twice as likely to report having a medical condition that makes it difficult for them to operate a motor vehicle.
Although older drivers have much more experience on the road than younger ones, age-related physical and mental changes can make driving safely more difficult.
The main aging-related conditions that might make it difficult for seniors to drive are changes in overall physical fitness, problems of the muscles, and declines in vision and cognitive function. Medication side effects, which reduce concentration and impair driving skills, might significantly raise risk.
Older drivers may have slower reaction times as a result of their bodies’ declining coordination, suppleness, and strength. The CDC also discovers that as drivers get older, their risk of dying or suffering serious injuries in a car accident rises.
According to the Insurance Institute for Highway Safety, fatal collisions climbed significantly between the ages of 70 and 74, peaking in drivers over 85. This is mostly because older drivers in this age range are more likely to sustain injuries in crashes, particularly chest injuries and other medical issues. Higher auto insurance premiums for elderly drivers follow more serious incidents.
As you age, trying to maintain your best physical and mental health may be beneficial. Additionally, maintaining safe driving practices will help you keep your auto insurance premiums more affordable. A clean driving record free of tickets or accidents is a strong indicator to auto insurance providers that you are still a skilled driver and deserving of fair prices.
Advice for Seniors Purchasing Auto Insurance
All senior drivers experience a steady rise in their auto insurance prices, but there are ways to reduce these costs.
Compare prices from various businesses
The best advice is to compare rates from various auto insurance providers. Your objective when comparing auto insurance quotes from at least three companies is to pick the one with the cheapest costs for your particular situation.
Ask for reductions
To be sure you’re receiving all the vehicle insurance savings you qualify for, don’t be afraid to call your insurance agent or insurer. Bundling multiple policies from the same company, paying in full, and going paperless are a few easy ones to get.
Enroll in a driving safety course
If you complete an authorized defensive driving course, many auto insurance providers will give you a discount. Some governments require this reduction for drivers 50 and older in an effort to encourage senior drivers to enroll and hone their abilities.
Drive less to save money
Inform your auto insurance provider if you’ve retired, are working fewer hours, or simply drive less overall. You may be eligible for a low-mileage discount if you drive your car less frequently than a predetermined annual threshold.
Keep a clean driving record
Maintaining a clean driving record free of accidents and moving offences will show that you pose less of a risk, and you may be eligible for a good driver discount that may cut your premiums.
As people age, their auto insurance rates tend to rise. This is because insurance companies believe that older drivers are more likely to be involved in accidents and file claims. However, there are a number of things that seniors can do to reduce their auto insurance costs.