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How does auto insurance change when you celebrate your 50th birthday?
The average 50-year-old paid $1,246 for car insurance in 2018. For a standard 6-month policy, this will cost you $623 or $104 per month for auto insurance. Although this is 25% less than what the rest of the US pays for car insurance, it's still important to save. Let's break down the cheapest car insurance for drivers in their 50s as well as other cost-cutting solutions.
In order to determine which company was the cheapest, we created a based profile of a married couple aged 50 and examined rates from five companies in five ZIP codes. While your rates will not match exactly those generated via our methodology, you can use the data as a jumping off point when shopping for car insurance.
|Car Insurance Provider||Average 6-Month Premium|
In your fifties, you go through a lot of changes both in your personal life that reflects considerably on your insurance profile. Removing your kids from your insurance company can have big implications as well as qualifying for more discounts. Let's explore.
Removing your young drivers from your policy can be a huge money saver. Using the same profile we used to get rates for two 50-year-olds on their own policies, we also calculated what the difference would if you were to remove a young driver from the policy, also outlined here. On average, removing a son or daughter from your policy will save you over $3,600 per year.
If, however, your child is still on your policy, we have some suggestions as well. Using a 17-year-old as our default profile, we examined which company was the cheapest for a family. Much like our results from above, Geico and Progressiveproved the most affordable options for family auto insurance. Here are our results.
|Car Insurance Provider||Average 6-Month Premium|
Most insurance experts advise to only file a claim if damages exceed your ability to pay out of pocket. Most companies and states will charge you for an at-fault claim for 3 to 5 years. Broken down below, you can see how much an at-fault accident will raise your rates over a 3 year period.
|Year After Accident||Average Annual Premium|
|0 - No Accident||$1,427|
|1 Year Later||$2,114|
|2 Years Later||$2,801|
|3 Years Later||$3,488|
As you can see, the surcharge for filing a claim increased the annual premium by over $2,000. If you've been in an accident and aren't sure of whether or not to file a claim, follow our guide below.
Here is more information on whether or not to file a claim.
Unlike your home, a vehicle does not retain value. If your vehicle is worth less than $4,000, it's typically recommended to drop collision and comprehensive coverage. Both comprehensive and collision are only required if you're leasing or financing and are designed to protect the physical integrity of vehicle. As such, they tend to be expensive coverages.
You can determine the value of your vehicle on Kelley Blue Book and NADA Online.
Usage-based insurance programs are relatively new to the world of auto insurance. Simply put, usage-based insurance policies use in-car and mobile apps to monitor the way you drive in order to determine your premium. In theory, the safer of a driver you are, the less you will pay for auto insurance. Below are some estimates you can find from some top insurance providers in the US.
|Progressive SnapShot||Average of $130|
|Allstate Drivewise||Average of 10-25%|
|State Farm Drive Safe & Save||Up to 15%|
|Nationwide SmartRide||Up to 40%|
|Liberty Mutual RightTrack||Average of 5-30%|
Outside of the above mentioned companies, consider additional providers such as Root and Metromile. Root only derives your car insurance premium based on your driving habits while Metromile is a pay-as-you-go form of auto insurance.
You can find more information regarding telematics here.
If you want to keep your son or daughter on your policy while they are away for college, you can see some savings through a Distant Driver discount. This discount refers to students who are more than 100 miles away from home and under 23-year-old. This discount, while it varies by company, could save you hundreds of dollars a year on your auto insurance premium.
Those who are older than 55-year-olds are eligible for a state-approved, senior driving courses which you, depending on your insurance company, will usually receive a discount for. These courses include safe driving strategies, rules of the road, use of new technology, and the effects of health issues on driving ability. You can access these courses through AARP, AAA, and the National Safety Council but be sure to check with your insurance company prior to taking any courses—as some insurance companies might not recognize the discount.
If you’re starting your retirement early and are now driving less than you had before, speak with your insurance company about a possible low mileage driving discount. While the threshold for "low-mileage" varies by company, it can range between 7,500-15,000 per year.
You can find more information regarding low-mileage insurance options here.
If you’re a retired military member, some insurance companies will offer you a discount. While it varies by company, Geico and USAA can offer some pretty high discounts to retired military personnel.
Belonging to organizations like AARP can earn you a discount with some insurance companies.
If you’re over 50-year-olds, you qualify for the Hartford Insurance Company. Hartford offers a wide variety of perks to its members, including a discount if you’re already a member of AARP.
Once you enter your nifty fifties, key an eye out for extra savings. Look to take your college-aged children off your policy as well as some mature driving discounts and consider Geico and Progressive. Although you're entering a time of insurance savings, you shouldn't be complacent with your company. Shopping for car insurance every 6 months has continually proven to save you money. Work with us to find out how much you could be saving on auto insurance.
We randomly selected 5 zip codes in 5 different areas across the US by using the 5 most popular companies in the US based on net premiums written. Here are the zip codes we selected:
With that created, we decided to get the male and female teen two parents with two vehicles in order to create a base to build the teenage driver profiles from. This is the information we chose to use:
Next, we needed to create the profile of the teen drivers; one that is female and male. Here is the information: