Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 18, 2020

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Key takeaways...

  • There are perks to being a senior driver (age 55+), such as discounts that senior drivers are eligible for
  • Keep in mind though that once you are 70 and older, you are put back in a higher risk category
  • Either way, there are other ways that senior drivers can save money on car insurance

After you’ve spent your life going to work and driving, it would be nice to know that all your driving experience could save you money on your car insurance. Fortunately, it can!

That’s great news for seniors, who are often living on fixed incomes. But how can your age save you money on your car insurance?

If you’re interested in more affordable and better auto insurance, enter your ZIP code above and compare at least three to four policies today!

Table of Contents

Group Rates through Senior Citizen Groups

Once you turn 55, you are often eligible to join groups specifically for people in that age group, like AARP or AMAC. These groups usually have deals with companies to offer their members insurance at special group rates, which can be cheaper than buying an individual policy.

Don’t just automatically sign up with one of these offered policies, though; they aren’t always the least expensive option.

If you are still employed, check with your company’s human resources department to see if they offer a group rate through the company. These group rates can often be even better deals than the senior citizen groups.

Of course, with some of the other tips discussed below, you might even find a good rate from a traditional company, partly because, with these companies, the cost is spread out among a clientele of all ages.

With the senior groups, the price is spread out among a smaller age range.

And while drivers between the ages of 50 and 70 have very low accident rates, the accident rate for drivers over the age of 70 goes up dramatically, says Insure U. Senior group rates would include a bigger number of drivers in this category.

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Discounts for Low Mileage

Another way your age might help you save money on car insurance is through discounts not previously available.

For instance, if you are retired and no longer commuting, then your insurance rates should drop. Commuters pay higher rates than those who only drive for pleasure.

In fact, as seniors age, they tend to put fewer and fewer miles on their car each year. If you are in this category, ask your insurance agent or company representative if you qualify for a low mileage discount.

Anyone of any age that doesn’t put too many miles on their car can qualify for this discount. It’s common for people who take public transit to work and only use their cars on the weekend to get this discount.

Most insurance companies offer this low mileage discount to drivers who put less than 7,500 miles on their cars a year.

It’s also common for seniors to come to depend more on other drivers to chauffeur them to doctor appointments and on shopping errands as they age. If this describes you, talk to your insurance company about what adjustments can be made to your policy for your revised needs.

Discounts for Drivers over 55

Many insurance companies offer discounts to mature drivers over the age of 55. Some insurance companies even drop the required age to 50. The discount amount you can receive varies from company to company, so be sure to ask.

The reason you get a discount for reaching age 50-55, reports the Insurance Information Institute, is that mature drivers are far less likely to participate in risky driving behavior.

They are less likely to speed or drive aggressively, which translates to fewer tickets and accidents.

However, these discounts often begin to dwindle or disappear entirely around the age of 70. At this point due to many reasons physical concerns about the driver start to take precedence over their experience and usually lower risk.

Eyesight is often negatively affected by aging. As a person ages, they are less able to react as quickly to situations on the road as their reflexes slow down.

If a person drives while suffering from even mild forms of dementia, it can result in confusion on the roadways, says HelpGuide.org.

Drop Comprehensive and Collision

After a person retires and their life slows down a bit, it’s common for them to hold onto cars far longer than they did when they were driving to work every day or were more active.

While not a direct result of their age, this prolonged ownership could work to a senior driver’s advantage when it comes to the cost of car insurance.

If you have a vehicle that is several years old, consider dropping the comprehensive and collision coverage from your policies.

Collision is what pays to fix your car or gives you money to replace it of you cause an automobile accident. Comprehensive pays for the same things if the damage is from anything not related to an accident, like a storm or theft.

While collision and comprehensive can be excellent coverages to have, if you have a car that is several years old, you need to remember that these will only pay you for the blue book value minus your deductible.

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For older cars, this payment could often be less than what you are paying for the coverage.

One guideline you can use to see if this fact applies to you is the “ten times” rule.

Find the blue book value of your make and model, which can be found on the Internet. Then look at your insurance bill to see how much just comprehensive and collision coverage costs you.

If you can multiply that number by ten and it is equal to or less than the blue book value, you should probably drop comprehensive and collision.

However, this isn’t a hard and fast rule. If you have a newer car that would cost quite a bit to replace, then keep the comprehensive and collision coverage.

If you are strapped for cash and have no savings to replace your car if it were to be totaled, then you might be better off paying the premium, so you have some means of replacing it.

However, if at all possible, it might be better if you do have some savings to drop the extra coverage and stash the savings away to pay for repairs or an eventual replacement for the car.

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Compare Rates

No matter what age you are, it’s always a smart idea to compare rates from more than one company before buying car insurance, which is especially important for seniors.

If you’ve been with the same company for years, they may no longer be the best option now that you are in a new stage of your life. On the other hand, they may also be giving you a loyalty discount that is saving you a lot of money.

While most insurance companies offer mature driver discounts and low mileage discounts, they aren’t always the same amount.

And they are almost always going to be starting from a different level of premium. Insurance companies each have their own way of determining your premium. You’ll never know if what you are paying now is a good deal or a rip off unless you compare it to other rates.

When you are getting rates from insurance companies, make sure you are comparing “apples to apples” by getting quotes for the same amount of coverage from each place.

You can’t make an informed decision about who has the best deal if one company is quoting you the minimal amount required in your state, while another is quoting the amount recommended for seniors or someone with your income.

Also get quotes from a variety of sources. Don’t just look at the companies from your senior group, but check out traditional companies, local companies, etc. You’ll probably be surprised at how much variance you’ll get from the quotes.

Other Ways to Save Money

If you have additional motorized vehicles that you are enjoying during your senior years, like an RV used to travel the country or a boat for fishing, get quotes for all of them from the same company.

Insurance companies will give you discounts for having more than one type of policy with them on each of the policies.

This bundling discount also goes for your homeowner’s or renter’s insurance. Even if you own your home outright, you still need insurance to help cover it in case of fire or storm damage.

Getting that policy from the same place you get your car insurance is a great way to maximize your savings.

It’s also important to keep in mind that you may come to a day when it is no longer safe to drive.

While no one likes giving up the independence that driving their own car brings, the reality is that sometimes it is unsafe for some older people to continue driving.

The National Highway Safety Administration has some helpful tips about things to be aware of when physical signs of aging can be impairing your driving. There are also some suggestions of ways you can adapt to extend your safe driving years as long as possible.

If you’re also aware that you need better and more affordable auto insurance, enter your ZIP code below and start comparison shopping today!