With age, you gain extensive driving experience: you get more familiar with the rules of the road and the way traffic in your community works. However, getting older doesn’t always mean lower car insurance rates. For senior drivers, various factors can affect insurance rates, including age, health, and driving habits.
As a senior driver, you may be wondering what your options for personal auto insurance are. Infinity Insurance Agency, Inc. (IIA) works with drivers of all ages and experience levels to help them find affordable auto insurance policy options.
Read on to see which coverages may best fit senior drivers and what factors affect insurance prices.
How age impacts car insurance premiums
Car insurance rates typically drop as drivers reach their 40s, 50s, and early 60s. However, insurance tends to be more expensive for teenage and senior drivers. After age 70, drivers may see their insurance premiums increase. Some of the factors affecting this increase are:
- Slower reaction times: While this won’t affect all drivers, studies suggest that as we get older, we tend to lose muscle strength and motor skills, which may lead to slower reaction times when we’re behind the wheel.
- Increased accident risk: Drivers over 65, as well as new teen drivers, are more likely to be involved in an accident for each mile they drive, according to the California Department of Insurance. People in these age groups often see higher auto insurance premiums.
- Health concerns: Aging comes with a natural decline of some cognitive, memory, and visual skills. These functions directly impact driving, which may lead to a higher likelihood of accidents.
Common coverage needs for senior drivers
If you or someone you know is a senior driver, you may wonder which coverage is recommended. Here are coverage options that may help offset the costs in case of a covered accident and that may provide road assistance for senior drivers:
Liability coverage
Liability coverage helps pay for injuries and property damage to other people when you’re the at-fault driver in a covered accident. It’s required in most states. For example, in California, liability coverage is known as 30/60/15. This means you need a minimum coverage of $30,000 for injuries to one person, $60,000 for injuries per accident, and $15,000 for damage to the other driver’s property.
While the required minimums are important, they may not cover the costs of your own injuries or damage to your property, which is where other types of coverage come in.
Collision and comprehensive coverages
These may help offset the costs of repairs or replacement of your vehicle, depending on the event. They may be useful for newer or pricier vehicles. Additionally, if your vehicle is leased or financed, the lender may require these coverages.
- Collision coverage: It may help cover the costs of repairs or replacement of your vehicle if it’s damaged in a traffic accident, whether you’re the driver at fault or not.
- Comprehensive coverage: It may help pay for repairs or replacement of your vehicle for events that are not traffic related. Examples include wildfires, floods, damage by animals, theft, or vandalism.
Medical payments (MedPay) and personal injury protection (PIP)
Medical payments coverage, or MedPay, may help cover medical or funeral expenses for you or your family if they are injured by another vehicle. In most states, MedPay is not required, but it’s important for older drivers to consider it, as they may face higher healthcare costs in case they are injured in an accident. MedPay applies regardless of who is at fault, for drivers who add it to their insurance policy.
PIP insurance, or personal injury protection, is similar to MedPay. It may cover the costs of medical expenses due to a traffic accident. Additionally, it may also help offset lost wages, rehabilitation costs, and some essential services used.
Medical payments (MedPay) and personal injury protection (PIP) depend on the policy you choose and on your location. Some states, such as Florida and New York, require PIP insurance.
Roadside assistance
For seniors, roadside assistance coverage could provide critical support when common traffic incidents happen. For example, a senior driver could experience a blown tire, a dead battery, or accidentally get locked out of their car.
Roadside assistance may include services such as:
- Battery assistance
- Roadside towing
- Flat-tire change
- Lockout assistance
- Fuel delivery
While these services could be useful for drivers of all ages, older drivers could benefit a lot from having extra help during stressful traffic events.
Rental car reimbursement
Another optional coverage that could be helpful for older drivers is rental reimbursement coverage. This coverage helps you pay for a rental car when your own car is under repair or out of commission after a covered accident. The rental car reimbursement coverage can be useful in the event of a longer repair time.
Factors that affect insurance rates for seniors
Let’s look at the factors that help determine how much a senior driver may pay for personal auto insurance.
1. Their driving record: For drivers of all ages, a cleaner driving record usually means lower rates. As an older driver, you may have established a longer driving history, which could be helpful if it shows a lack of traffic accidents. On the other hand, one accident or ticket can have a larger impact on older drivers, since insurers see them as higher risk.
2. Annual mileage: Driving less in general can lead to lower premiums since you are less exposed to traffic accidents. Reporting your mileage accurately to your insurer may also qualify you for a low-mileage discount.
3. Location: Car insurance is often more expensive in cities or higher-density areas due to the increased likelihood of traffic accidents. The crime rates and weather risk in your area may also affect the price of insurance.
4. Vehicle type: Vehicles with good crash ratings may result in lower premiums. These vehicles underwent tests that showed a lower likelihood of injuring drivers and passengers.
On the other hand, luxury and high-performance vehicles may be more expensive to insure. If you have a custom-built or modified vehicle, your insurance premiums may also be higher.
5. Insurance history: If you had gaps in your insurance history, that is, if you had a car without insurance at some point, you may see higher premiums. Conversely, you may qualify for a discount if you held continuous coverage without lapses.
IIA helps drivers of all ages find affordable policy options. We can help you see if you qualify for discounts from our insurance carriers. We offer car insurance services in California, Florida, Texas, and more.
Special considerations for senior drivers
Aging causes physical changes in all of us. It’s important to refrain from driving if you have a medical condition or take medicines that interfere with your ability to drive.
Impaired vision, hearing, and reaction time can affect your driving ability. Conditions that negatively influence a person’s vision are strongly associated with traffic accidents, according to the National Library of Medicine. Some states may require you to take a medical screening or retake a driving test after a certain age.
Additionally, some states recommend that older drivers take an approved driver’s course. California, for instance, has the Mature Driver Improvement Program. Another example is Florida, where drivers can take a Mature Driver Discount Insurance Course. Reach out to your insurance agency to see if these courses could make you eligible for a discount.
When to reevaluate your car insurance coverage
You can reassess your coverage to see whether you may be able to reduce your premiums. Key points at which it may be useful to reassess include:
- Downsizing your vehicle: You are switching to a smaller, more economical car.
- Retirement or lifestyle changes: If you plan on commuting less, lower mileage may lead to a cheaper premium.
- Other life events: If you move, add or remove a spouse from your policy, or finish paying for a car loan, you may be able to adjust your coverage.
How IIA supports senior drivers
At IIA, we can help you find affordable policies tailored to low-mileage or retired drivers. If you have any questions about what type of coverage may be the best fit for a mature driver, our agents are ready to help. We also offer Spanish-language customer support and can help with SR-22 requirements.
To get an auto insurance quote for seniors from 20+ carriers, call 1-855-478-3705 or get a free quote online from IIA today.