Drivers shopping around for a new insurance company are likely to notice how their age bracket significantly affects their insurance premiums. Rates tend to peak for young drivers, gradually fall through middle age, then rise again after 75. Knowing where you fall on that curve is the first step to finding savings.
Though California, Massachusetts, and Hawaii prohibit insurers from using age as a factor in determining car insurance rates, for seniors and retirees on a fixed income, even a modest reduction in premiums can make a real difference.
Find out how much you pay compared to the average and discover strategies that could help bring your bill down.
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What is the average car insurance premium by age?
According to carinsurance.com, here’s what drivers pay on average for full coverage by age:
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Why do rates change with age?
Younger and older drivers typically pay the most for car insurance, with middle-aged drivers paying the least. For instance, the average 20-year-old driver pays roughly twice as much for their insurance premium as the typical 40-year-old driver.
However, past 75, senior drivers start seeing their premiums increase due to their increased likelihood of getting into an accident. At the age of 75, carinsurance.com reports that seniors pay an average of $2,742 for their full coverage insurance premiums compared to 70-year-old drivers who pay hundreds less ($2,498).
How does your premium compare?
While age significantly factors into drivers’ car insurance premiums, it is not the only metric that insurance companies use for calculating auto insurance rates.
Several other factors also influence drivers’ insurance rates, which could explain why someone’s insurance premium might be higher or lower than the average for their age range.
These factors include things like your address and ZIP Code, vehicle make and model, marital status, driving record, credit score, and annual mileage.
With all that being said, there are also plenty of ways for drivers, especially seniors and retirees who are on a fixed or limited income, to greatly save on or reduce their insurance premiums and keep more of their hard-earned money.
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Consider usage-based telematics discounts
Driver monitoring programs, also known as telematics, track driving behavior through a smartphone app or a device that plugs into your vehicle’s computer. They collect data on things like speed, braking, cell phone use, and annual mileage, then use that information to match your rate to how and how much you actually drive.
For seniors and retirees who don’t commute daily or rack up high mileage, this could mean significant savings on both fronts. According to Consumer Reports, drivers age 60 to 69 could expect a median savings of around $115 through telematics programs.
Consider raising deductibles
Drivers who can afford to pay cash for any necessary repairs might consider increasing their deductible to save money on car insurance.
According to Consumer Reports, the average driver only files a claim once every few decades, so it’s unlikely they would have to pay for repairs in the event of a crash.
It’s estimated that increasing deductibles can cut annual premiums by 20% to 25%, potentially saving you hundreds of dollars a year.
Consistently shop around and comparing insurance policies
It’s a good idea to compare rates from three to five different insurance providers to see which ones offer a more favorable deal.
Consider both large national carriers and regional insurance companies. Since each company uses different criteria to come up with insurance rates, their prices are likely to significantly differ.
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Maintain a good driving record
Drivers could be eligible for car insurance discounts if they have a clean driving record. Some insurance companies offer a five-year good driving discount.
Other insurance providers could offer 10% to 30% discounts to seniors who consistently demonstrate good driving habits by avoiding tickets or other traffic violations and remaining accident-free.
Reduce or change coverage on older vehicles
You could save money on car insurance by adjusting coverage on older vehicles. For instance, it might not be worth it to pay for collision coverage on an older vehicle that’s worth less than $3,000.
Another way to consider this is the 10X rule for collision coverage. Typically, if a car is worth less than 10 times your annual collision premium, there’s a good chance that the premium exceeds any potential payout.
In that case, it makes sense to drop collision coverage.
Ask for low-mileage discounts
Seniors and retirees who don’t drive as frequently could be eligible for low-mileage discounts.
According to carinsurance.com, drivers over the age of 65 could receive a 6% discount for having lower annual mileage. This discount is well-suited for senior drivers and retirees who only drive around 5,000 to 7,500 miles each year.
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Consider bundling policies
Senior drivers could save significantly on car insurance if they combine their auto policy with their home or renters’ insurance.
For instance, Liberty Mutual Insurance estimates that senior drivers could save up to $950 if they bundle their home and auto insurance policies.
Take a defensive driver course
Some insurance companies offer senior drivers a discount if they complete a defensive driving course. According to insurance.com, senior drivers could receive a 5% discount for completing one of these courses.
However, some companies offer discounts as high as 16% to senior drivers who complete a defensive driving course.
Look into discounts for years as a licensed driver
According to carinsurance.com, drivers 65 years of age or older could earn a discount of up to 26% based on the number of years they have had a driver’s license.
The longer you’ve been behind the wheel, the more insurers may reward that experience, so it’s worth asking your provider whether this discount applies to your policy.
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Look into loyalty discounts for years insured
According to carinsurance.com, drivers over the age of 65 could earn up to a 21% discount based on the number of years they have been insured.
Especially if senior drivers have used the same insurance company for decades, they could likely qualify for a significant loyalty discount.
Bottom line
With the average full coverage car insurance premium for a 65-year-old driver coming in at $2,353 in 2026, it’s crucial for seniors to find ways to save money on car insurance.
This is especially true for retirees on a fixed income, who could potentially save themselves hundreds of dollars if they use these tired and true methods.
FAQs
At what age does car insurance typically go down?
The most significant drop happens around age 25, when drivers can generally expect to pay 12% to 20% less than they did before. Rates continue to decline gradually through middle age, with drivers around 50 to 60 tending to see the lowest premiums. After that, rates start climbing again as insurers factor in the elevated risk that comes with driving at an older age.
What age group pays the highest car insurance rates?
Teen drivers, particularly 16-year-olds, pay the most of any age group. The reason is largely statistical: drivers aged 16 to 19 are involved in almost three times as many fatal crashes per mile driven as any other age group, according to federal crash data.
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