Car Insurance Costs By Age: What’s Behind Rising Premiums As We Get Older?

Written By: William Rivers
Reviewed By: William Rivers
Published: September 22, 2023
Last updated: December 29, 2023

Age is often associated with wisdom and experience, but it also brings with it a significant change in the way insurance premiums are calculated. For many senior drivers, understanding these changes becomes a task in itself. So, what’s truly behind the rising premiums as we age?

The Dynamics of Age and Insurance

Data sourced from the Hartford reveals some fascinating trends. Using this data, we will break down some key figures and expand on them below. On average, senior drivers can expect to pay around $1,615 annually or roughly $135 monthly on car insurance. If we delve deeper, those within the age bracket of 60-69 have a slightly more favorable deal, with their premium averaging $1,545 annually and $129 monthly.

Those that are in the 70-79 bracket pay a national average annual premium cost of $1686, and a national average monthly premium cost of $140.

The 70-Year Mark: A Turning Point?

There’s a common misconception that car insurance rates decline consistently as one ages, owing to an accumulation of years of driving experience. However, the reality paints a more nuanced picture.

While drivers in their later years are often more careful, driving fewer miles, and generally adjusting better to adverse driving conditions, they don’t necessarily enjoy reduced insurance premiums. 

According to the Hartford, as the age of a driver increases, so does the risk of being involved in an accident for every mile driven. This pattern is especially pronounced after the age of 70, marking it as a potential inflection point in insurance cost trends.

A State-Wise Look at Senior Citizen Car Insurance Rates

It’s important to remember that insurance is as much a regional subject as it is an individual one. Let’s take a closer look at how car insurance premiums for seniors fare across different states, using New York, Georgia, and Florida as representative examples.

New York: Known for its bustling streets, New York mandates both bodily injury liability and property damage liability insurance. New Yorkers on average find themselves paying roughly $1,445 annually on car insurance. These figures are set against a backdrop of the state’s coverage limits:

$25,000 for bodily injury; $50,000 for death per accident involving a single person.

$50,000 for bodily injury; $100,000 for deaths involving multiple passengers per accident.

$10,000 towards property damage for each accident.

Georgia: Moving south, Georgia offers a slightly different insurance landscape. With a change in minimum coverage limits, Georgians pay an average of $1,259 per year. Their coverage limits are:

$25,000 for bodily injury per individual per accident.

A cumulative $50,000 for bodily injury per accident.

$25,000 dedicated to property damage for each accident.

Florida: A unique player in the insurance game, Florida diverges from the norm with its emphasis on Personal Injury Protection (PIP) and Property Damage Liability (PDL). The average Floridian shells out $1,414 annually for car insurance, covering:

$10,000 PIP per individual.

$10,000 PDL per accident.

Wrapping It Up

Growing older brings with it many changes, and the way we’re evaluated for insurance premiums is just one of them. A combination of personal driving habits, regional insurance mandates, and age-related risk factors play pivotal roles in determining these costs.

For senior drivers, it’s more crucial than ever to stay informed. Regularly revisiting and reassessing policies can lead to potential savings. While the landscape of car insurance is intricate and continually evolving, being equipped with knowledge, like the insights provided by the Hartford, ensures that drivers are always in the best position to navigate these waters.

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William Rivers is an editor with a master’s degree in Human Services Counseling at Maine State University. He has more than 20 years of experience working in the senior healthcare industry.
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