Does Car Insurance Increase After Age 75?

Car insurance rates tend to increase as drivers get older, with significant hikes often occurring after age 75. This is due to higher risks and costs associated with insuring elderly drivers. While frustrating, being aware of when and why rates increase can help you budget accordingly and shop for the best rates.

Why Rates Rise After Age 75

There are a few key reasons why car insurance gets more expensive for drivers over 75 years old:

Higher risk – Insurance companies view elderly drivers as more likely to get into accidents, file claims, and incur expensive medical bills. Thus they pose greater financial risk to insurers.

Increased fragility – Even minor collisions are more likely to cause significant injuries requiring medical treatment in older drivers. This results in larger claim payouts.

Declining health – Age-related declines in vision, reflexes, and cognitive awareness raise safety concerns and accident risks. Insurers price policies accordingly.

Driving less – Many seniors drive fewer miles than middle-aged drivers. But reduced mileage discounts only partially offset higher rates due to risk factors.

State restrictions – Some states require vision tests, road exams, or more frequent license renewals for older drivers, which can prompt rate hikes.

Average Cost Increases at Age 75

Analyzing nationwide rate data shows just how much more expensive car insurance gets after age 75.

Age 60 to 65 – Rates start increasing slowly, with average annual premiums rising around 3% from age 60 to 65.

Age 65 to 70 – Acceleration picks up, with average annual costs increasing approximately 6% from age 65 to 70.

Age 70 to 75 – The pace of rate hikes quickens further, with average premiums rising around 7% from ages 70 to 75.

Age 75 to 85 – This decade sees the most dramatic rate spikes, with average premiums jumping 24% from age 75 to 85 – amounting to around $350 per year.

So on average, drivers tend to see single-digit increases until age 70, then above average hikes through the 70s, and dramatic 20%+ increases in the 80s as risk compounds. But this varies by state and individual driving records.

When Premiums Spike After Age 75

While premium increases accelerate through the 70s, the most dramatic hikes often occur directly at age 75. This is due to a combination of rising risks and key state restrictions kicking in at 75:

  • Florida requires a vision exam starting at age 80 but insurers tend to increase rates at 75 in anticipation.

  • Hawaii requires a vision test every two years for drivers over age 72.

  • Illinois requires a vision test at 75 and road test at 87.

  • New Hampshire requires a road test at 75.

So in states with age 75 testing requirements, insurers tend to implement significant rate hikes right when drivers turn 75 because that birthday represents moving into a higher risk category.

Average Premium Costs Before and After 75

Analyzing detailed rate data shows how premiums spike at age 75 on average compared to earlier ages:

  • Age 60: $1,450 annually
  • Age 65: $1,493 annually
  • Age 70: $1,582 annually
  • Age 75: $1,817 annually

So there is a gradual rise from 60 to 70 amounting to around 9% total over the decade. But year-over-year costs then jump 19% from age 70 to 75 due to accelerated risk factors and state license requirements kicking in.

This data holds true across all policy types – liability coverage, full coverage, state minimums, etc. However, cost increases dissipate a bit after peaking around age 80 if older drivers reduce mileage and switch to less expensive vehicles to insure.

Strategies to Minimize Rate Hikes

While drivers have little control over getting older, there are some strategies to help minimize rate spikes after age 75:

  • Comparison shop – Prices can vary significantly across insurers for older drivers, so compare rates annually.

  • Take a course – Completing an approved defensive driving course can earn a discount.

  • Drop collision/comprehensive – Consider dropping these coverages on older cars.

  • Raise deductibles – Increasing deductibles can lower premiums substantially.

  • Reduce mileage – Driving less can qualify seniors for lower-mileage discounts.

  • Review discounts – Make sure to ask about and take advantage of all available discounts.

Why Prices Don’t Decline After Age 80

Given declining driving risks at more advanced ages, some may expect premiums to decrease again after peaking around age 80. So why do rates not drop as seniors reach their 80s, 90s, or beyond?

There are a few reasons why car insurance rates plateau rather than dropping off later in life:

  • Health risks and fragility remain high regardless of fewer miles driven

  • Once rates rise, insurers are reluctant to lower prices

  • Accident rates don’t decline enough to warrant lowering prices

  • Seniors may switch to more expensive vehicles to insure after retiring

The combination of sustained high risks and lack of competitive pressure to reduce rates for lower mileage keeps prices steady in advanced age. But avoiding accidents and traffic violations can still pay off with some discounts.

The Outlook for Elderly Drivers

Being aware that significant car insurance rate hikes accompany aging – especially after attaining age 75 – can help drivers plan ahead and budget accordingly in retirement.

While prices don’t decline later in life, taking advantage of discounts, modifying coverage, and comparing rates annually can help seniors get the best deal. Maintaining safe driving skills and seeking regular vision exams are also important for keeping roads safe for everyone.

Key Takeaways

  • Car insurance rates increase substantially after age 75 due to higher risks.

  • Average premiums rise 24% from age 75 to 85, amounting to $350 more per year.

  • States requiring license testing at age 75 drives spikes as risk categories change.

  • Prices plateau rather than dropping later in life due to sustained high claim costs.

  • Following best practices on discounts and coverage can minimize increases.

So being proactive and prudent with policy options can help offset the typical rate hikes facing aging drivers, while also keeping roads safer as we advance in years.

Frequently Asked Questions

How much do rates increase at age 80 and beyond?

Average rates only rise around 1-2% per year from age 80 onward. But this sustains higher costs rather than dropping off – rates at age 80 are around 24% higher than at age 75.

Do car insurance rates ever go down as you get older?

Unfortunately rates do not decline again after peaking in your late 70s and early 80s. Once you are in higher risk categories, prices mostly level off but remain elevated.

Should I stop driving after a certain age?

There is no set age when everyone must stop driving. But monitor your skills and reactions honestly, and consider limiting or stopping driving if you notice declines. Never drive impaired.

Can I offset rate hikes after age 75?

Taking defensive driving courses, raising deductibles, and modifying coverage can help minimize increases. Comparison shopping annually also ensures you aren’t overpaying.

Why don’t insurers offer senior discounts to lower costs?

Insurers do offer some senior defensive driving discounts. However, loss data shows accident risks rise significantly after 70, so most carriers are reluctant to lower base rates after that age.

Should I only get minimum liability coverage after age 75?

Liability-only policies are cheaper, but come with risks if you cause an accident. It’s wise to maintain solid coverage – just raise deductibles on collision/comprehensive if your car is worth less.

Why your auto insurance rates are rising | FOX43 Finds Out


What is the cheapest car insurance for seniors?

Cheapest car insurance for seniors Geico has the cheapest insurance for most seniors. A minimum-coverage policy from Geico costs $763 per year, while full-coverage insurance from Geico costs $1,463 per year, on average.

At what age is car insurance most expensive?

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims.

Does car insurance go up the older you get?

According to Progressive, car insurance companies usually offer lower rates for drivers between 45 to 55 years old, but once a driver turns 75, they should expect to pay more.

Why is senior car insurance so high?

While most drivers in their 80s are more experienced than anyone else on the road, the effects of age can impact our reflexes and reaction times. That may explain why the cost of auto insurance for seniors over 80 typically increases.

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