Auto Insurance Often Falls in Your 50s and 60s, Then Climbs Again Around 70

Quick Read

• Car insurance costs tend to hit their lowest point around age 60 at about $2,312, then rise about 19% to roughly $2,742 by age 75.

• An approved mature driver course can lower premiums by 10% for three years, often saving more than the typical age-related increase.

• Do not reduce liability coverage just to cut costs. A better option for older, lower-value cars is to drop collision coverage and protect home equity and retirement savings.

You may be in your late 60s, have a clean driving record, and still see your renewal price go up. That happens because insurers build an age pattern into their pricing. Based on 2026 rate data from CarInsurance.com, a full-coverage policy averages $2,421 at age 50 and drops to $2,312 at age 60 before rising again to $2,498 at age 70.

This complaint is hardly new. A caller on The Clark Howard Podcast once said, "I am a senior citizen and we're shopping around for car insurance, with a combination of house also." Many retired drivers could say the same thing.

1. People roughly between 60 and 75, especially those living on fixed incomes, notice this most.

2. Premiums reach their low point at age 60, averaging about $2,312 per year.

3. By age 75, the average climbs to about $2,742, or roughly $430 more, which is about 19% higher.

4. You can absorb the increase, or look for ways to reduce coverage costs and compare quotes.

The broader cost environment makes things harder. The BLS research price index for Americans 62 and older rose 3.6% over the past year, so a higher insurance bill is landing in a budget that is already under pressure.

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Claims Per Policy Drive the Price, and They Rise Near 70

Insurance companies price policies based on expected claims. According to the Insurance Institute for Highway Safety (IIHS), drivers ages 65 to 69 have the lowest property damage liability and collision claims per covered vehicle. Those claims begin to rise after about age 70.

The picture is not entirely negative for older drivers. On a per licensed driver basis, fatal crash rates for people ages 70 to 79 fell below those of drivers ages 35 to 54 for the first time in 2015. Crash rates per mile do begin to increase around age 70, but IIHS notes that older drivers often spend more time in city traffic, where crashes are more common than on freeways, which may make the per-mile figures look somewhat worse.

Although you cannot change your age, insurers also consider other risk factors, including how many miles you drive, the value of your car, and the size of your deductible. Those are all things you can control, and they can offset an increase of a few hundred dollars.

Three Moves That Can Offset the Age Increase

Take a Mature Driver Course

Many states require insurers to offer a discount for an approved driver safety course. In New York, completing a DMV-approved course earns a mandatory 10% premium reduction for three years.

On a $2,742 policy, that works out to about $274 a year, which is more than the $186 average increase between ages 60 and 70. The course usually takes only a few hours online, making it the easiest savings option here. Be sure to renew the course before the discount expires.

Pay for the Miles You Actually Drive

IIHS notes that many older drivers drive fewer miles and avoid nighttime travel. If you no longer commute, ask about low-mileage discounts, pay-per-mile plans, or usage-based programs that track driving behavior. The tradeoff is that monitoring programs can record hard braking and late-night trips, so they tend to reward calm daytime driving and may penalize the rest.

Reduce Coverage on an Older Car

In one October 2018 conversation, Clark Howard asked a caller, "Are any of the cars you have old enough that you can avoid taking collision and comprehensive on that vehicle?" If a car is worth $4,000 and carries a $1,000 deductible, the most collision coverage would ever pay is $3,000. Compare that with what you pay for the coverage each year. If the premium is a large portion of the maximum payout, you may be spending too much to insure a car you could mostly replace on your own. Raising the deductible is a middle-ground option. Keep full coverage if losing the car would wipe out your emergency savings.

What to Do Before Your Next Renewal

1. Shop every renewal after 65. Insurers do not treat age the same way, and some raise rates much more sharply for drivers over 70. The company that was cheapest at 62 may not be cheapest at 72. Get quotes for both bundled home-and-auto coverage and separate policies, because a bundle is not always the lowest-cost choice.

2. Stack discounts in order of effort. Start with the mature driver course, since it is quick and, in states that mandate the discount, guaranteed. Next ask about mileage-based pricing. Save deductible changes and collision coverage decisions for last, after checking the vehicle’s value.

3. Do not cut liability limits just to save money. This is the most expensive mistake. Many retired households have home equity and retirement savings that could be exposed in a serious lawsuit. Liability coverage helps protect that money. Remove collision coverage on an old car before touching the insurance that protects your net worth.

Your premium will likely keep edging higher after 70. A course certificate, accurate mileage information, and a fresh round of quotes at renewal can help keep your bill closer to what you paid at 60.

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