Over 55? Here’s How to Save More Than $300 on Car Insurance
If you’re middle-aged, you’re enjoying some of the lowest of any demographic: A 50-year-old male driver pays an average of $2,515 a year for full coverage, or 6% less than a 40-year-old ($2,680) and more than 12% less than a 30-year-old ($2,871).
Rates keep declining into your 60s, when that same motorist pays an average of $2,430 a year, or about 15% less than a 30-year-old. But the tables turn as you approach 70, when premiums increase to an average of $2,635.
“That’s $350 more a year, which is significant when you’re on a fixed income,” says Laura Longero, editor-in-chief of CarInsurance.com. “You’ve got to think outside the box.”
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Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
According to Consumer Reports, drivers 60 and older were more likely than younger policyholders to receive rate increases in the past 12 months. (Only California, Hawaii and Massachusetts prohibit using age as a factor in determining premiums.)
There is a silver lining, though: Thirty-four states and the District of Columbia require insurers to offer discounts to mature drivers who complete a state-approved defensive driving course. Some insurers offer discounts nationwide, regardless of whether there’s a state mandate.
That’s a valuable benefit, especially since drivers are keeping their licenses longer, according to the Insurance Institute for Highway Safety. Between 1997 and 2023, the number of licensed drivers 70 and older increased 98%.
Defensive driving course for seniors
Defensive-driving classes focus on safe driving techniques and strategies to avoid accidents, including how to identify potential collision causes. Most involve videos and narrated course modules with quizzes throughout.
“It’s just the basics of how to be mindful while driving,” Longero said.
The minimum age varies by insurer and state, but it’s typically 50 or 55, and classes are available in person or online. Geico, for example, recognizes online programs offered by the National Safety Council, the American Safety Council, and Driving School of America, as well as classroom-based courses through the AARP Smart Driver program. (You can also call 800-861-8380 for more approved schools.)
Once you successfully complete your training, Geico is automatically notified and your policy is updated with the discount.
Geico Auto Insurance
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Policy highlights
Geico offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
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Availability
Geico auto insurance is available in all 50 U.S. states and Washington, D.C.
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Accident forgiveness
Accident forgiveness is automatic if you remain accident-free for five years. It can also be bought as an upgrade when you buy or renew your policy.
Terms apply.
The length of a course varies by state: In Maryland, for example, Geico’s online class is just two hours, but in New York, it’s six. Typically, you can save your progress and complete the modules at your own pace.
Discounts start at 5% or 10%, but Geico, Progressive, State Farm and others advertise reductions of up to 15% off for completing a safe-driving class. In some cases, finishing the course will also take points off your record, lowering your premiums even further.
In most cases, tuition is nominal. Geico charges between $13 and $30, depending on the state, and certification lasts three years. According to Bankrate, a 60-year-old driver with full coverage would save over $308 per year with a 15% defensive driver discount.
Over the three years the certification lasts, that’s more than $920.
Other ways for experienced drivers to save
Defensive-driving courses are just one way seniors can lower their car insurance, according to Longero. Established drivers should also review their finances and determine what coverage they can cancel.
“At this point in your life, you probably don’t have car payments and maybe you have money in your savings account,” she said. “So, if you totaled your car, you could buy another one. If that’s the case, maybe you keep your liability limits higher […] but then you drop the comprehensive and collision coverage. That’s how you think outside the box — just pay for what you need, right?”
If you do keep comprehensive and collision coverage, she adds, “increasing your deductible from $500 to $1,000 will save you money, too.”
Are you retired or just driving less? Longero advises asking your insurance company if it has a pay-per-mile plan, which involves a small monthly fee plus a few cents for every mile. (Most plans cap at 10,000 miles per year.)
Nationwide estimates 25% savings for customers who use its SmartMiles plan, while Metromile, a popular pay-per-mile platform owned by Lemonade, reports average savings of 47%.
Nationwide Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Metromile Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Metromile’s auto insurance offers coverage in eight states and is backed by Lemonade. Metromile offers discounts for insuring multiple cars and discounts for bundling policies, and a discount of up to 15% for using its Ride Along program, which tracks driving for 17 days before calculating a rate.
Many insurers also offer telematics programs, which use an app to track your speed, braking, acceleration and other driving habits and reward safe drivers with lower rates.
“People balk at the tracking aspect of these programs,” Longero said. “If you don’t like that, a usage-based plan is better. Even just saying, ‘I drive under 8,000 miles a year,’ when you enroll — that’s going to save you money.”
Experienced drivers can also take advantage of all the same discounts as any other car owner, including paying in full, going paperless or bundling home and auto policies.
“If you have a company like USAA, you can bundle your life insurance, your auto insurance, your home insurance,” Longero said. “Even things like valuable property Insurance. Bundle everything and get more discounts.”
Loyalty doesn’t always count
One mistake longtime drivers often make is staying with the same insurance company out of a sense of loyalty. Many carriers do offer loyalty discounts, but they’re often used to soften the blow of a rate increase. (That 10% discount turns a 30% price hike into a 20% one.)
Insurers use price optimization to determine exactly how much customers are willing to pay before they hit their pain point. They also assume longtime members will be less likely to comparison shop. But, according to a Consumer Reports survey, drivers who switched insurers in the past five years saw a median annual savings of $461. More than a quarter (28%) of respondents reported saving $500 to $999, and another 13% claimed to have saved at least $1,000.
“Shop around regularly, every six months to a year,” says Longero. “Check rates for a few different companies to make sure you got the best deal.”
Senior car insurance FAQs
Is car insurance more expensive for seniors?
Yes, car insurance rates tend to tick upward once you turn 65 or 70. Age-related changes in vision, hearing, reflexes and cognition can lead insurers to see older drivers as a higher risk. In addition, longer recovery times and more complications from injuries can increase the cost of medical care. That can raise the price of Medical Payments (MedPay) or Personal Injury Protection (PIP) coverage.
Are older drivers more likely to get into accidents?
Drivers 70 and older have higher fatal crash rates than middle-aged drivers. However, the rate of fatal collisions involving older drivers decreased 47% between 1975 and 2023, according to the Insurance Institute for Highway Safety, which credited safety improvements like airbags and rearview cameras.
What are the best car insurance companies for seniors?
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Meet our experts
At CNBC Select, we work with experts who possess specialized knowledge and authority, gained through relevant training and experience. For this story, we interviewed Laura Longero, editor-in-chief of CarInsurance.com. Laura has been in the personal finance editorial space for over 15 years and has been interviewed by AARP, Consumer Affairs and Business Insider.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every car insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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