For a number of reasons, car insurance can be more expensive for older people, even those with excellent driving records. Typically, car insurance companies offer lower rates to drivers between the ages of 45 and 55, and once a driver turns 75, car insurance starts to cost more, according to Progressive. (opens in a new tab). With car insurance rates already high in many states, finding ways to save can be crucial, which is why many car insurance companies offer a variety of discounts for seniors.
Car insurance by age
25 years : Generally, car insurance for teenagers is expensive, since they don’t have much driving experience and are therefore more likely to have a car accident. When drivers turn 25, their rates drop an average of 9%, according to Progressive.
50 to 60 years old: This age bracket is likely to experience lower rates than other age brackets because middle-aged drivers have good driving experience and are less likely to be hearing or visually impaired.
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70 to 80 years old: Once drivers reach their mid-70s, car insurance rates generally increase, as this age range has an increased risk of being involved in an accident. Seniors are also more prone to injury in car accidents, which can lead to high medical bills and other expenses.
80 years : Although they have the most driving experience, drivers in this age bracket are the most likely to have reduced reflexes and reaction times, which drives up their car insurance premiums.
The following chart shows age-specific auto insurance rates based on Progressive Personal Auto (opens in a new tab) policies sold nationwide from September 2020 through August 2021.
If you’re in the auto insurance market, compare current rates below with our new tool in partnership with Bankrate.
Ways for seniors to save on car insurance
If you’re struggling with the cost of rising car insurance, the following tips can help you save.
Take a driving course: Many states have imposed adult driver discounts for seniors if they take state-approved driver education. Organizations such as AARP, AAA, and the National Safety Council (NSC) offer these courses. Taking the AARP smart driver online course could entitle you to a multi-year discount on your auto insurance policy and the successful completion of the AAA Pilot Improvement Program (opens in a new tab)designed to reduce the risk of older people driving, may also result in lower insurance premiums.
There are also a number of other discounts available to seniors to help reduce insurance premiums.
Maintain a safe driving history: Many insurance companies reward drivers for having an accident-free driving history. Geicofor example, offers up to 22% off most coverages if you haven’t had an accident for five years.
Maintain vehicle safety: You could benefit from additional savings if your vehicle is up to the mark on safety equipment. This may include airbags, anti-lock brakes, anti-theft systems and collision avoidance technology. state farm (opens in a new tab) offers auto insurance discounts on 1994 and newer model year passenger vehicles based on the claims experience of the make and model of the insured vehicle.
Try a multi-policy discount: If you take out two contracts with the same insurer, you can save thanks to a multi-contract discount, offered by most insurers. For example, if you purchased both auto and home insurance from progressiveyou’ll get discounts on both policies, with average savings of 5%.
Pay your policy in full: Sometimes paying your policy in full, rather than making monthly payments, can help you save.
Stay accident and violation free: Keeping your driving record free of accidents, tickets or any violations will help you qualify for lower rates.
Check your location: Are you planning to move in retirement? Keep in mind that auto insurance varies widely from state to state, so check to see if you can afford the rates for where you’re moving.
Compare the prices: As always, researching the best rates is a good idea if you’re looking to save as much as possible, as rates vary from insurance company to insurance company. Make sure you get at least three quotes before committing to a policy.
Increase your deductible: Raising your deductible also lowers the amount you pay for insurance. Since your personal expenses increase in the event of an accident, your premium will be lower.