Does Car Insurance Cost More for Old People?

By Contributing Writer

  • Overview

    Does Car Insurance Cost More for Old People?
    Given the variety of negative stereotypes about older drivers, it may be easy to think that car insurance is more expensive for older people. However, that is not always the case. In fact, teenagers usually have higher insurance costs than seniors because they generally have a higher risk for accidents. Although car insurance companies do take age into account, a person's insurance rate is based on multiple factors, including driving history. There are also a number of steps seniors can take to ensure their car insurance remains affordable.
  • Misconceptions

    There are a number of negative stereotypes about older drivers, but the fact is that they are far from the most dangerous age group on the road. By a high margin, teenagers are much more likely to be involved in an accident and are a much riskier group to insure. According to, teenagers are four times more likely to be involved in a car wreck than seniors. Older drivers as a group are also more likely to obey traffic laws and drive responsibly than teenagers. So, while car insurance is based on a variety of factors, it tends to be more expensive for young and newly licensed drivers than for older people. In fact, a family's rates may more than double after they add their newly licensed teenager to their insurance policy, according to surveys conducted by the National Association of Insurance Commissioners (NAIC).
  • Age

    While car insurance is not generally more expensive for older people as a whole, there may be some differences based on age groups. The NAIC has found that drivers over 50 tend to have cheaper rates than other age groups, as long as they have a clean driving history and obey traffic laws. However, notes that rates may rise for some senior citizens over age 75. At this age, accident fatalities increase among seniors, largely because they can become more seriously injured even in minor accidents. However, their overall crash rate is still much lower than that of teenage drivers.

  • Comparisons

    Though car insurance typically does not cost more for older people than for teenagers, in most cases average rates for seniors are higher than for middle-age drivers. In fact, middle-age females who are married typically have the lowest insurance rates.
  • Other Factors

    Insurance companies take many factors into account when setting rates, even for older drivers. Besides age, the insurance rate is also based on the make and model of your car, marital status, driving history, health history and a host of other factors.
  • How to Reduce Costs

    Seniors can keep their auto insurance affordable by driving responsibly and taking a driver's education "refresher" course. AARP offers the largest program specifically for seniors over 50, both in classrooms and online. After completing this course, older drivers can usually get a discount on their insurance rates. Taking this class every few years can help seniors keep rates low and ensure they still have the necessary motor abilities to drive safely.
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