How Seniors Can Save on Car Insurance: A Guide to Lowering Your Premiums
With car insurance rates skyrocketing in many states, finding ways to save has never been more important. In 2025, auto insurance costs surged by 26% compared to the previous year, with another 7% increase expected this year. Several factors contribute to these rising costs, including higher repair expenses (up 6.7% according to CPI data) and an increase in traffic accidents. As a result, many drivers are switching insurance providers in search of better rates.
For seniors, car insurance becomes even more expensive, especially after turning 75. Insurance companies justify these higher rates by citing increased accident risks and higher chances of severe injuries among older drivers. Even if you have a spotless driving record, you may still see your premium rise due to age-related risk factors.
How Car Insurance Changes with Age
Age 25: Insurance rates drop by about 9% as drivers gain more experience and become less accident-prone.
Ages 30-40: This period typically offers lower rates, as drivers are considered responsible and experienced.
Ages 50-60: Middle-aged drivers enjoy some of the lowest insurance rates, benefiting from extensive driving experience and fewer impairments.
Ages 70-80: Premiums start to increase as accident risks rise, and injuries tend to be more severe, leading to higher medical costs.
80s and beyond: Despite decades of experience, slower reflexes and reaction times drive insurance costs even higher.
Average Annual Full Coverage Car Insurance Rates by Age (CarInsurance.com):
| Age | Rate |
|---|---|
| 18 | $5,249 |
| 25 | $2,259 |
| 35 | $1,947 |
| 45 | $1,869 |
| 55 | $1,737 |
| 65 | $1,742 |
| 75 | $2,010 |
8 Ways Seniors Can Save on Car Insurance
If rising insurance costs are stretching your budget, consider these strategies to reduce your premiums:
Take a Defensive Driving Course
Many states mandate discounts for seniors who complete approved driving courses. Programs from AARP, AAA, and The National Safety Council (NSC) can help you qualify for multi-year savings. The AARP Smart Driver online course and AAA’s Driver Improvement Program are excellent options that can lead to lower premiums.
Maintain a Clean Driving Record
Insurance companies reward accident-free drivers. For example, Geico offers up to a 22% discount for drivers who remain accident-free for five years. Avoiding tickets and violations can significantly lower your insurance costs.
Upgrade Your Vehicle’s Safety Features
Cars equipped with modern safety features often qualify for discounts. Here’s how much you could save with Geico based on your vehicle’s equipment:
Airbags: 23% Anti-lock brakes: 5%
Anti-theft system: 23%
Daytime running lights: 3%
New vehicle discount: 15%
State Farm also provides discounts for cars from model year 1994 onward, based on the vehicle’s loss experience.
Bundle Your Policies
Many insurers offer multi-policy discounts when you bundle home and auto insurance. For instance, Progressive customers save an average of 7% when bundling both policies.
Pay Your Policy in Full
Some insurance companies offer discounts for paying your premium in full upfront rather than opting for monthly installments.
Consider Your Location
If you're planning to move in retirement, keep in mind that car insurance rates vary significantly by state. Research insurance costs in your potential new location before making a decision.
Shop Around Before Renewing
Always compare at least three insurance quotes before renewing your policy. In 2025, drivers who switched providers saved a median of $461 per year.
Increase Your Deductible
Opting for a higher deductible can reduce your monthly premium. However, ensure you have enough savings to cover the deductible if an accident occurs. By taking these steps, seniors can keep their car insurance costs manageable while maintaining the coverage they need. Start exploring your options today to see how much you could save!