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Car Insurance For Senior Citizens | Money Geek

by · October 30, 2024

Expert Advice

Aniruddha Pangarkar, PhD

Assistant Professor of Marketing at the University of Wisconsin-Green Bay

Are seniors charged more for car insurance?

Even seniors with great driving records are subject to high insurance because, after age 70, decreased reflexes, mobility, and reaction time while driving can likely lead to accidents. If an accident does happen, there is also the likelihood of greater injuries among seniors, thus leading to higher medical expenses and hospital bills, which car insurance companies need to account for. This is the reason car insurance is higher for seniors.

What are ways seniors can save money on car insurance?

While there are not a whole lot of options available for seniors to save money on car insurance, several states in the U.S. have implemented provisions for seniors who choose to enroll in and are able to successfully complete state-approved driving courses, significantly alleviating the high insurance cost. AARP, AAA and the National Safety Council are the organizations that have taken the lead in promoting and providing these classes for seniors who qualify.

What should seniors look for in car insurance companies to find the best coverage?

Seniors can look into a few things to find the best and cheapest car coverage. First, it is always better to drive cautiously and safely and avoid getting into any accidents to avoid insurance premiums increasing further.

Second, if your insurance company provides options, then you could enroll in usage-based programs that install devices in your vehicle and track your driving history and record. If you demonstrate that you are a safe and cautious driver, then you could qualify for certain discounts.

Third, if you can show your insurance company that you don’t drive much and have lower mileage, then the propensity of being in an accident greatly reduces, and you could qualify for a lower insurance rate.

Fourth, always remember that the ZIP code in which you are located determines your insurance premium. For example, if your ZIP code is in a location where there are several accidents and crime incidents taking place regularly, then you could be at the risk of paying a higher premium. You can alleviate this by moving to a neighborhood that qualifies for lower premiums on account of lower crime rates and accidents.

Car Insurance For Seniors Reviews: Our Ratings Methodology

To determine the best car insurance providers for seniors, we collected data from independent sources and created a weighted scoring system.

  • 30% Customer satisfaction: Data collected from the National Association of Insurance Commissioners (NAIC) customer complaint index and J.D. Power customer satisfaction scoring determined customer service satisfaction.
  • 30% Affordability: Data collected from Quadrant Information Services. Affordability scoring analyzes how rate costs compare between providers. **- 20% Claims: Data collected from J.D. Power Claims Study and the Crash Report Card determined customer satisfaction when making a claim
  • 10% Coverage: We hand-collected coverage offerings and data from car insurance providers to determine if the insurer offered essential coverages most drivers need.
  • 5% Financial Stability: AM Best provides financial stability ratings that assist in determining the insurers’ record of meeting financial obligations with claims.

Study Overview to Determine Cheapest Providers for Seniors

To determine car insurance rates and comparisons, we collected data from State insurance departments and Quadrant information systems. We analyzed 706,104 quotes from 67 companies across 897 zip codes to determine national and state-specific rate averages.

Sample Driver Profile

To collect rate cost data, we used a sample driver profile and modified it to collect data on personalized factors such as age, geographic location, or driving history. The sample driver profiles are as follows:

  • 2010 Toyota Camry LE
  • 12K miles driven annually
  • Male drivers
  • Drivers ages 60, 65, 70, 75, 80, 85 and 90
  • Drivers with a clean driving record, with a ticket, accident or DUI.
  • Policies, Coverages, and Deductibles Explained

Using our sample driver profiles, we collected rate costs for full coverage as well as liability-only coverage. We also collected data on coverage amounts.100/300/100 is shorthand for:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $100,000 property damage liability

300/500/300 is shorthand for:

  • $300,000 bodily injury liability per person
  • $500,000 bodily injury liability per accident
  • 300,000 property damage liability

Coverage requirements are determined at the state level. We collected data on state-specific rates using the state’s coverage requirements to determine state and national averages for state minimum coverage requirements. In the event of an incident or accident, a deductible is the amount you will pay before your insurance kicks in. We applied the following deductibles to all of the coverages and policies listed above:

No deductible (Liability-only policies)

  • $500 deductible
  • $1,000 deductible
  • $1,500 deductible

Learn more about MoneyGeeks car insurance methodology, at Car insurance For Senior Citizens

 

 

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