Senior citizens usually get lower auto insurance rates due to the fact that they typically have fewer accidents than drivers of other age groups. Seniors are less likely to drive recklessly or speed, are more mature and have lots of experience behind the wheel. This translates to fewer loses to the insurance company. These lower rates usually will start around age 50 and continue until around age 65 or 70. Some insurance companies will continue to offer these lower rates until you actually stop driving.

In addition to lower rates, many insurance companies will offer discounts once a certain age has been attained and/or the person retires. For example, Allstate Insurance Company offers a “55 and retired” discount if the senior is age 55 and retired. Many companies also offer a discount for taking a defensive drivers education class. This discount is usually around 5% to 15% and the class must be taken every 3 years in order to maintain the discount.

Seniors also will typically have more assets than younger drivers. The kids are grown and out of the house. The house, the car, the credit cards may be paid off and there just aren’t as many bills any more. Often the cars are getting older and in the event of an accident, they may have the cash to replace the car and therefore may want to consider dropping collision and comprehensive coverage to reduce the rate. This could mean that there would be no coverage to fix the car in the event of an accident. Carrying just liability insurance can result in a rate reduction of around 50% in many cases.  However, it is advisable to carry high limits of liability to protect your assets just in case an accident does occur. If your limits of liability are not sufficient to satisfy a lawsuit against you, the claimant could come after your assets to satisfy the judgment. Be sure to consult a qualified agent so that you make the right coverage choices for your situation.