Car insurance for seniors: why rates rise after 70

Why car insurance goes up in your 70s

Insurers price on expected claims, and age is one of the strongest predictors they are allowed to use in most states. For decades of adult life that works in your favor. Experience accumulates, violations drop off your record, and premiums fall.

The curve turns later in life. According to the Insurance Institute for Highway Safety, fatal crash rates per mile traveled begin increasing at ages 70 to 74 and are highest among drivers 85 and older. Older drivers are also more likely to be seriously hurt in a crash of the same severity, which raises the cost of the injury claims insurers pay.

There is a counterweight. IIHS also notes that older people generally drive fewer miles than other age groups, and that crash rates for drivers in their 70s have improved substantially over the past few decades. That is why mileage is the most useful lever you have, and why it pays to make sure your insurer actually knows how little you drive.

Tell your insurer your driving has changed

Many policies are still rated on the life you had when you bought them. If your policy lists the car as used for commuting and you have stopped working, ask to change it to pleasure use. If you now drive a fraction of the annual miles on file, update the estimate. Both are standard rating factors, and neither changes on its own.

If you drive very little, a usage-based or pay-per-mile program can go further. These programs price on measured driving instead of an estimate. They suit low-mileage drivers best, and they are worth understanding before you enroll, because some can raise your rate as well as lower it.

Discounts worth asking about after 55

The most widely available is the mature driver discount for completing an approved accident prevention course. Many states require insurers to offer it to drivers above a set age, commonly 55, and the discount usually lasts for a fixed number of years before you retake the course. The rules differ meaningfully by state.

Beyond that, ask about bundling home and auto, multi-car discounts if two drivers in the household each have a car, paid-in-full and paperless discounts, and pricing through a membership organization. Several insurers sell policies through affinity programs, and the trade-offs vary. A membership discount is only worth it if the underlying price is competitive.

Rethinking coverage on an older, paid-off car

Collision and comprehensive pay to repair or replace your own car, up to its actual cash value. If you have owned the same car for many years, that value may now be low compared with what those two coverages cost each year. Raising the deductible or dropping them entirely can be reasonable, as long as you could afford to repair or replace the car yourself.

Liability is different, and it is the coverage not to cut. Retirees often have savings and home equity that a serious at-fault crash could expose. State minimum limits are low in most states, and higher liability limits usually cost relatively little to add.

When to shop around

Insurers weigh age differently from one another, so the company that was cheapest at 60 is not necessarily cheapest at 75. Get quotes at renewal, after any change in the household such as a spouse giving up driving, and whenever you move. Compare at identical coverage limits and deductibles, or the comparison tells you nothing.

This guide is general information, not insurance advice, and does not account for your state's specific regulations. Figures cited are industry estimates from published rate studies. VIP Car Insurance is a free comparison service and is not an insurer.