Seniors: Best Car Insurance Policies & Discount Tips for 55+ Over

By InsuranceHotline.com Team
Senior male driving with senior woman

For seniors, finding the best car insurance policies is important. Your golden years are supposed to be your best years. But you might find that despite a clean driving record, your auto insurance costs continue to climb. In your fifties and sixties you might not have a problem, but as you reach your seventies or eighties, your rates could become more expensive. The good news is, there are a few insurance discounts savvy seniors can benefit from.

From bundling insurance and telematics to comparison shopping, here are a few auto insurance discounts to help lower your rates.

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Finding Senior Auto Insurance

Auto insurance in Canada is mandatory regardless of age but, as you age, you might find yourself driving less frequently. Despite driving less, some Canadian seniors find their rates are going up every year.

Age can affect the auto insurance rate you are charged. The older you are, the more a particular age group could be considered risky to insurers. Age groups are categorized together and rates are based on claim and accident statistics. That’s why if you’re aged seventy or older, you might find that your insurance rates continue to go up and become much more expensive.

Insurers base their rates on the amount of risk drivers in a particular age group can present. That doesn’t mean you can’t get reduced auto insurance but you might have to explore a few avenues that can bring your rates and premiums down.

Auto Insurance Rate Increases by Milestone

Not every insurer will raise rates for seniors, so if you find your rate going up despite driving less and having a clean driving record, it might be worthwhile to shop around.

Drivers in their fifties

In your fifties, you might find cheaper policies. You’re considered a safer driver with plenty of experience and ideally, you have good health and fast reflexes. You also have good vision and hearing skills.

Drivers in their sixties

Once you reach your sixties, you may still have lower premiums if you have a clean driving record and no claims. If you see a slight increase in rates it might be time to comparison shop with other carriers. Why? Most people let their insurance policies auto-renew. That means you’re not getting the best rate possible for your insurance.

Drivers in their seventies

You might notice your insurance go up when you turn age seventy. That’s because you’re falling into a riskier age group. Insurers see the seventies as an age group that might have more accidents than middle-aged drivers. However, the automatic rate increase at age seventy doesn’t mean you have to accept that particular rate. Some insurers will recognize your good driving behaviour and claim-free record, use online tools to find better rates.

Drivers in their eighties and beyond

Another reason you’ll see rates go up in this age group is that older drivers often have longer recovery times, and this can mean higher costs for claims. Again, not all insurers see things this way, which is why it’s important to shop around.

Why Insurance Costs More for Seniors

With insurers, some specific age groups are seen as higher risks for accidents or claims. These groups can include teens and men in their early 20s, who statistically have a higher record of crashes.

Some insurers consider older drivers a risk as well for a few reasons:

  • You may have age-related changes to vision and/or hearing.
  • You might experience a delay in reflexes from an age-related decline in motor function skills, or as a side effect from some medications.
  • You might have a health condition that affects your driving abilities.
  • For older drivers injured in accidents, the healing time can take longer. Hence, treatments and rehabilitation might be more expensive.

While some insurers categorize seniors by age, not every insurer will do that. And some even have specific discounts that you might be able to apply for.

Insurance Discounts for Senior Citizens

Worried that your rates are going up as you age? If you're a good driver with a clean driving record and no claims, don't worry. There are different types of discounts you can benefit from.

Here are a few ideas…

Find an insurer that specializes in fifty-five and older groups or retirees.

They may offer special discounts for mature drivers or have policies for seniors that aren’t age-based. You should also ask your current insurer about the types of discounts they offer. For example, if you’ve never filed a claim or haven’t had claims in the past year or the past five years, you might be eligible for a discount. Let your current insurance agency know you're comparison shopping. They might offer a discount to keep your business.

Use an online auto insurance comparison tool.

In retirement, you might be on a fixed budget. Hence, every dollar counts. That’s why an online insurance comparison tool is handy. It can help you compare rates from the leading insurers in Canada. You can shop by the type of coverage you want and then contact an insurance professional to lock in your rates.

The benefit with an insurance comparison tool is that you’re saving time. Instead of having to check in with every insurance company in Canada, you can view their rates all at once. You also get to select the best package and premiums that fit your budget.

Check with CARP for discounts.

The Canadian Association for Retired Persons (CARP) might offer discounts for seniors. They may also know about special insurance policies for 55+ age groups.

Ask for a discount for a shorter commute.

If you’re driving less to work as you transition into retirement, let your insurer know. They might offer a discount because you’re on the road less meaning there’s less risk to them as an insurer.

Combine your insurance packages.

Another way to see a discount is with bundled insurance. Let’s say you have home insurance with one insurer and auto insurance with another carrier. Ask your insurer if they will give you a discount for bundling all your policies under one company. If that particular broker or insurance agent doesn’t offer a discount for bundled insurance, check with other insurers.

Ask about a discount for usage-based insurance.

This is sometimes called telematics and it is a device that you install in your vehicle that lets your insurer track the usage of your vehicle. Maybe you only use your vehicle to run errands and go to the occasional doctor’s appointment. You might benefit from this type of discount because it’s usage-based not age-based. If your carrier doesn’t offer it, shop around as you might be eligible for a 5 to 10 percent discount. The insurance company cannot use the data collected from the device to increase your premium, they can only use it to lower your premium.

Keep a clean driving record and don’t file any claims.

An additional way to get an insurance discount is to maintain a clean driving record. If you’ve never had an accident, ask your insurer about a discount on your policy. If they don’t offer one, check with other insurance carriers.

Are You Ready to Shop For the Best Insurance Rates?

As a senior, you could see your rates go up as you age but if you're a good driver with a clean record and no claims, you might be eligible for different discounts. Talk to your insurer about reduced driving discounts and bundling insurance. Then compare rates online to find the most affordable prices. If you have any questions or if you need help with insurance, contact InsuranceHotline.com.

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