Search our Blog

Search our Blog

Wednesday, April 9, 2025

What Can You Do About Car Insurance Premiums?

  



As rates keep rising, audit your current policy to make sure you're getting the best rate. Especially after turning 70. 


Back in December, the SCSA blog offered some tips on how to reduce your home insurance premiums. It will come as no surprise to drivers to hear that car insurance premiums have also shot up over the last several years. In 2025, the average cost of full coverage in the U.S. is up to $2,638, up 12% from last year. And in some states, rates have climbed even more: Florida drivers pay an average of $4,171 per year for full coverage, the most expensive rate in the nation. 

Thankfully, just like with home insurance, there are ways to nudge your car insurance premiums in a downward direction, including special tips for seniors. 

Consider carrying less comprehensive insurance, especially for older vehicles.

This one comes with caveats. You can save big on insurance by paying only for liability coverage, but be sure to look at the whole picture. Most experts will recommend carrying comprehensive coverage in case of non-accident-related damage to your car, and you may be required to have it if you don’t yet own the car. But if your car is older and/or pre-owned, you may be paying more for comprehensive insurance than the actual cash value of the car. 


More Car Insurance Discounts for Seniors

  • While car insurance costs tend to decrease in your 50s and 60s, there’s a tipping point at age 70. Statistically–that is, according to the Insurance Institute for Highway Safety–crash rates start rising after age 70, hence insurers may start raising your rates. What can you do about it? If you notice you’re getting penalized for turning 70, talk with your company and ask them to lower your rate again. They may or may not acquiesce, so, at the same time, start shopping around. 
  • Take a driver safety course. Completing online courses from SafetyServe classes from AAA RoadWise Driver could lower your premium and help keep you safe. One driver https://clark.com/insurance/changes-that-saved-us-1600-annually-on-home-and-auto-insurance/ found they saved about $425 a year on insurance after taking the SafetyServe course.
  • Some companies offer preferred rates for older drivers. The Hartford partners with AARP to offer car insurance with seniors in mind, and they claim an average $577 member savings. Geico’s special Prime Time contract is available to drivers over 50 who meet certain requirements, including no drivers in the household under 25. The policy guarantees renewal year after year.
    Keep in mind that comprehensive insurance will, in most cases, cover damage from flooding, while simple liability will not. Flood risk is one of the reasons that Florida rates have risen so sharply. 

    Shop around every year.

    “If you haven’t given your insurance a hard look in a while, you could be paying too much, not have enough coverage, or both,” says Chuck Bell of Consumer Reports. Many companies give a discount for autopay, and perhaps that’s why… they’d rather you set it and forget it, because you may very well be able to get a better rate with them or another company. Consumer Reports suggests checking with your current company to see if they have any discounts for life changes you may have experienced, such as moving to a different state, getting a new job, or sending a teenage driver off to college. 

    Report your mileage if it’s under 10,000 a year.

    Another life change that can lower your premium is retiring. If you’ve recently retired and are now driving significantly less than you were when you were commuting, check to see if your company (or another one) will lower your premium. For many companies, 10,000 miles per year is a cutoff for discounted rates, and Consumer Reports estimates that people who get this discount save an average of $116/year.

    Hire an independent insurance agent.

    If the thought of having to shop around and compare rates on car insurance makes you want to get in your car and speed away, consider hiring an independent insurance agent to do the work for you. Independent insurance agents represent a number of companies, and their job is to find you the best rate, including from companies you may not have heard of. 


    Whether you do your own research or hire an agent: to paraphrase a certain gecko, it’s possible to save a significant amount of money on car insurance by investing just a little time.



    This article is not intended to be a substitute for professional financial advice from a qualified financial advisor.


    Posted by at