Age is one of the key factors affecting rates. Initially prices start coming down with age and mature motorists between the age of 50 and 65 get the best rates in their lives. But auto insurance start going up the older you get after 65, although slowly at first. Motorists notice premiums going up after age 70. The real price difference starts showing after age 80, at which time premiums can be about 40% more expensive on average than their best.
Automobile insurance is more expensive for seniors because they are likely to cause more accidents. Their bodily functions start diminishing that reduce effectiveness as a driver. That is why they enter into high-risk drivers category once again in their lives. But their accidents are usually different from the ones younger drivers cause. They are likely to have fender benders rather than high speed collisions, which are common with teen drivers. On the other hand, they are more likely to get seriously injured themselves even with a minor crash.
Many people may think that it would be unfair to see their vehicle insurance premiums go up even after years of clean records with no accidents and traffic tickets. However, companies try to predict the future while looking at the past as well. Statistically, there is a high chance of increased accidents at certain age groups and they have to take that into account even though you personally are managing pretty well and driving less and less every year.
Table: Auto Insurance Costs at Older Age Groups
| Age | Liability Only 50/100/50 | Full Coverage 100/300/100 |
| 55 | $600 | $1,520 |
| 60 | $600 | $1,520 |
| 65 | $640 | $1,570 |
| 70 | $690 | $1,680 |
| 75 | $730 | $1,850 |
| 85 | $960 | $2,170 |
As you can see on the table, auto insurance rates are gradually moving up from their lowest levels between age 50 – 65. The increase is only slightly at between age 65 – 75 and starts speeding up. By the time drivers reach age 85, they have to pay on average 60% more expensive premiums for Liability only and 43% for full coverage in comparison with the best rates they received when they are mature adults (between 55 – 65).
These are average figures and changes a lot from one company to the other and depending on the state lived in. Car insurance companies like Allstate, Liberty Mutual and the Hartford (with AARP membership) are known to offer cheaper quotes for senior motorists. They can also get good rates with AAA membership. It always pays to shop around to find the best deals, especially when you think you are paying too much for auto insurance.
Luckily, there are more discount opportunities at senior ages and here are some of them.
Defensive Driving Courses: Most states require vehicle insurers to offer discounts for motorists over 50, who completed one of the approved driving courses, like the ones offered by the AAA and The National Safety Council (NSC). Depending on the state and company, savings can be around 10%.
Usage-based Policies: There are many policies which calculate premiums based on vehicle usage. The good thing is that most older motorists are already retired and they don’t have to travel at rush hours. Also, they usually don’t travel at night and don’t go much far. So, they could benefit substantially by choosing one of these policies.
Mileage Based Discounts: When you are only driving for essential needs and not taking long road trips you are unlikely to cover many miles. Checking your yearly mileage and asking your insurer to recalculate your automobile insurance premium based on new mileage could deliver large discounts.
There are many other ways of saving money and shopping around alone can probably reduce costs a lot by allowing seniors to find the most competitive vehicle insurer for their age and circumstances. So, motorists should not accept the increased premiums as their new normal and look for ways to reduce costs. They may be higher risk but they don’t drive as much either that should help them bring down costs a bit.