Best Car Insurance for 50-Year-Olds

How does auto insurance change when you celebrate your 50th birthday?

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How does car insurance change when you turn 50?


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.


How much is car insurance for 50-year-olds?

  1. What's the cheapest company?
  2. Understanding your car insurance policy
  3. How to save at 50
  4. Your 50s: To Sum




Car insurance premiums at 50 years old


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.


AVERAGE CAR INSURANCE PREMIUMS FOR 50-YEAR-OLDS
Car Insurance ProviderAverage 6-Month Premium
State Farm$1,966
Allstate$1,137
Geico$651
Progressive$746
Liberty Mutual$1,078




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How your policy changes


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.


Your kids

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.


AVERAGE 6-MONTH PREMIUMS FOR FAMILIES
Car Insurance ProviderAverage 6-Month Premium
State Farm$4,965
Allstate$3,432
Geico$1,638
Progressive$1,978
Liberty Mutual$2,753




Ways to Save


Use your coverage conservatively

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 AccidentAverage 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.

  • Get an estimate for the repairs.
  • Use our State of Insurance analysis to see how much an at-fault accident would raise your rate in your state. Consider that value over three years.
  • Compare the out of pocket expenses to the rate increase plus your deductible. If it is cheaper overall to file a claim, do that.

Here is more information on whether or not to file a claim.


Don't pay for coverage you do not need

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

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.


ProgramEstimated Savings
Progressive SnapShotAverage of $130
Allstate DrivewiseAverage of 10-25%
State Farm Drive Safe & SaveUp to 15%
Esurance DriveSenseVaries
Nationwide SmartRideUp to 40%
Liberty Mutual RightTrackAverage of 5-30%
GEICO DriveEasyVariable

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.


Distant Student Discount

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.


Mature Driver Training Course Discount

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.


Low-Mileage 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.


Retired Military Discount

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.


Senior Organization Membership Discount

Belonging to organizations like AARP can earn you a discount with some insurance companies.


The Hartford

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.





Your 50s: unraveled


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.







Methodology


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:


  • Columbus, OH - 43216
  • McKinney, TX - 75070
  • Fresno, CA - 75070
  • Scranton, PA - 93722
  • Aurora, CO - 80013

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:


  • Parent's DOB: 08/01/1960
  • Mother's Vehicle: 2015 Toyota Sienna LE, owned, 12,000/year
  • Father's Vehicle: 2015 Toyota Crewmax, owned, driving 12,000/year
  • Driving Record: no accidents or citation
  • Education: BA
  • Licensed at: 16
  • Occupation: Manager Level - Accounting
  • Insurance History: Max amount selectable of previous years with insurance company, limits at 100/300/100

Next, we needed to create the profile of the teen drivers; one that is female and male. Here is the information:



  • Teen's DOB: 08/01/2000
  • Teen's: 2015 Toyota Carmy, owned, 12,000/year
  • Driving Record: no accidents or citation
  • Education: Above B Above
  • Licensed at: 17
  • Occupation: None


Recent Questions:

Best Car Insurance for 50 year olds

What on my driving record is raising my car insurance premium

There's a couple of things to consider here. First, the at-fault accident you had in January 2014 is over 3 years ago, so it shouldn't be impacting your premium anymore.

Can an insurance company force add me to a policy even if I do not drive?

Insurance companies generally require any household member of driving age be listed on a policy. Policyholders normally have the option, however, to "exclude" anyone they don't want added to their policy.

If I wrecked my daughter's car and she is covered on my policy, how do I keep her rate from increasing?

The first thing I'd like to address is the concern about your daughter's portion of the premium increasing. Since you are both covered on the same policy the overall premium is going to increase if a claim is filed.