How can seniors obtain very competitive auto insurance rates?

Updated on September 14, 2021

Can you spot the similarity between a young or middle-aged driver and a senior driver? Despite the high difference in age both, car insurance companies look upon young and senior drivers as high risk. This, you must bear in mind when shopping for auto insurance for seniors because it translates into a higher premium, and you must know the factors that can help to keep the premium low.

Moreover, there is concern among seniors about car insurance companies charging a high premium for them on crossing 65 years. Although there is no rule as such, the guidelines of the insurance companies and the state rules may sometime allow charging a higher premium for drivers on attaining 65 years. Everything said and done; it becomes clear that the perception of seniors posing more risk as drivers is a reality.

Age and car insurance premium

Although there is no age cut-off for insurance companies to decide exactly when to charge a higher premium for senior citizens, you can look at some figures to gather some ideas about the impact of age on car insurance premiums. A driver of 55 years must pay an average premium of $1,363 against $1,402 paid by a driver of 65 years. For drivers of 75 years and 85 years, the average premium payable is $1,651 and $1,987, respectively. The rate of progression in premium bears testimony to the fact that higher is the age more will be the premium.

Higher age means higher premium

Another interesting fact that comes out from the data is that some companies do not mind charging lower rates for those between 50 and 65 years. However, the rates rise sharply after 65 years, and it might be difficult for 70 years old drivers to find an insurance company that accepts them as a new customer. This corroborates the fact that higher is the age higher is the risk considered by insurance companies. It does not matter how safe a driver you might be in the advancing years as your age can prove detrimental to qualify for lower insurance.

Discounts are also available

It will be wrong to assume that the insurance companies apply the same yardstick for all seniors. Some insurance companies respect the driving abilities of seniors who have a clean driving record and offer discounts to encourage them to keep up the good work. When seniors attend an approved driving course or take a driver refresher course are good candidates for claiming discounts that some insurance companies would agree to. Known as a mature driver discount, it can range between 5% to 10%. Your insurance company or the state DMV can help you to find what type of senior driving courses you can take up offered by the approved schools.

The general rules for availing lower insurance rates apply for seniors too who must shop around and do some hard bargaining to prove their point and earn some discount, which is the most accepted way of lowering insurance rates. In addition, they can choose some insurance companies that offer attractive rates to seniors.

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