Auto Insurance for Older New Drivers (2024)

Older drivers are just as vulnerable to auto insurance rate increases as teen drivers.

If you’re in the process of getting your license later on in life, you have to budget for a lot more than a car payment. Car ownership can be expensive, especially when you have to pay for insurance coverage as an inexperienced driver.

The only way that you can effectively find a value-priced car insurance policy is to shop around. Enter your ZIP code into our free rate comparison tool above to get started.

As an older driver, you may have access to coverage through some of the leading providers that are geared towards insuring seniors and their families. It’s best that you determine how much coverage is appropriate first and shop around later.

Here’s a guide specifically for older new drivers:

Your Rates May Be Higher Than You Expected

Most people agree that wisdom comes with age. As you get older, you’re able to base your ideas and opinions off of life experiences that have shaped you as a person. Without experience, you can’t have wisdom.

Since you’re older and wiser than a lot of the 210 million licensed drivers in the United States, you’d assume that you’ll pay less for your insurance.

Unfortunately, being an older driver doesn’t automatically qualify you for discounts. In fact, when it comes to driving, your age can affect your rates negatively, especially if you’re a new driver.

Why does age affect your car insurance premiums?

Even experienced drivers pay the price for aging when they renew their auto insurance every year. You’re not alone when you question why your rates are on the rise.

There are more than 38.6 million licensed drivers who are 65 and older who all have to pay a surcharged insurance rate just because they’re seniors.

To an auto insurance company, senior drivers pose the risk that they will lose revenues. Money that’s dedicated to claims settlements can be classified as lost revenues.

Since older drivers account for more than 17 percent of fatality accidents and 37 percent of intersection crashes, there’s a huge likelihood that aging drivers will file a claim that the company has to pay.

Why do new older drivers pay more than experienced older drivers?

Age is one of those things that you can’t change. Unfortunately, if you want to drive into your golden years, you’ll pay the price because drivers in your age group tend to lose some of their driving skill in retirement.

Being an older driver isn’t the only reason your rates will be high, you’ll also pay the price because you’re inexperienced.

For some companies, age and experience are premium rating factors that go hand-in-hand. Other carriers will consider age and experience differently because not all people test for their license at 16. Like you, a lot of the population wait until later in life to get licensed.

Experience is generally a good thing. Since experience works in all drivers’ favors, it doesn’t help at all to be a senior driver who also isn’t getting credit for years of licensing experience.

Without these credits, you’ll be paying a high-risk rate similar to the rate that a teen driver with no actual behind-the-wheel experience pays.

Why is it so important for older new drivers to shop around?

All consumers looking for a low rate on their personal car insurance should shop around, but it’s even more important for recently licensed drivers tospend the time comparing rates.

Without doing a thorough review of what’s available on the market, you could pay more than an 18-year-old who has just bought their own car.

Premiums can range from very expensive to shockingly affordable. Just because a company gives you an all-time low quote doesn’t mean that it’s the carrier for you. Some companies offer low rates to build a big book-of-business that they won’t service.

You need to really commit to getting several quotes to see which respected carrier has fair pricing for older drivers.

Does it help to be a member of an organization?

You can get insurance from a carrier that serves all licensed drivers in the US, but you might be able to get group rates if you shop for coverage through an insurer that offers members of your organization special group rates.

Being a retired member of a professional organization is one way to get these discounted rates.

One of the most popular associations that all older drivers can join is the AARP. As a member of the AARP, you can get tons of senior discounts and also receive help navigating life through retirement.

One of the discounts you’ll get is on auto insurance through AARP-branded companies like The Hartford.

Can you save money on your insurance if you’re retired?

If you’re securing a license in retirement so that you can freely travel the globe, you could save off of your coverage because you don’t have a commute to the office. Here are some ways an older driver can save:

• Not having a daily commute – A pleasure rating is the lowest usage rating that you can receive.
• Not driving many miles – If you drive less than the average person on top of that, you’ll get a low-mileage discount.
• Senior discount – You’re not young enough to get credit for taking driver training as a newly licensed driver but it’s possible that you could get a different type of training discount. Most companies looking to insure the growing population of senior drivers offer some type of Mature Driver Discount.

To qualify for a Mature Driver Discount, you have to complete a short one-day course either in person or online. The course gives you tips on driving defensively. For learning new skills, the insurer will give you a discount for a whole three years.

If you have a savings or other assets that you need to protect, you’ll need higher limits of liability than the average driver.

Get instant quotes for coverage online to start your comparison shopping. Enter your personal details in our quoting tool and you’ll be one step closer to savings.