The words “low-priced” and “insurance” really shouldn’t be used in the same sentence, especially when you are trying to find the best price on coverage for drivers over age 60. Because it’s so expensive, let’s familiarize you with a few of the things that have an effect on insurance prices, and figure out some ways to slash the price of the next policy you buy.
The type of vehicle that is being insured is probably the most important factor when trying to find affordable auto insurance for drivers over age 60. Vehicles with higher performance characteristics, a lack of advanced safety features, or a track record of large liability claims will cost substantially more to insure than more modest models. The next table outlines insurance costs for the more affordable automobiles to insure in Michigan.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$4,247|
|Honda CR-V EX 4WD||$4,337|
|Ford Escape Limited 2WD||$4,345|
|Hyundai Elantra SE Touring Station Wagon||$4,599|
|Honda Odyssey LX||$4,670|
|Dodge Grand Caravan CV||$4,760|
|Ford F-150 STX Super Cab 4WD||$4,851|
|Ford Edge Limited 2WD||$4,931|
|Volkswagen Jetta 2.0T Station Wagon||$4,955|
|Nissan Altima 2.5 4-Dr Sedan||$5,022|
|Toyota RAV4 Sport 2WD||$5,032|
|Chevrolet Impala LT||$5,022|
|Chevrolet Malibu Hybrid||$5,031|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$5,107|
|Ford Explorer Limited 4WD||$5,112|
|Toyota Tacoma Double Cab 4WD||$5,120|
|Toyota Corolla LE||$5,288|
|GMC Sierra SL Crew Cab 4WD||$5,378|
|Jeep Grand Cherokee Limited 2WD||$5,386|
|Chevrolet Equinox LTZ 2WD||$5,378|
|Chevrolet Silverado LT Extended Cab 2WD||$5,388|
|Dodge Ram Quad Cab SLT 4WD||$5,478|
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Table data assumes single female driver age 60, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Michigan minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, multi-policy, and safe-driver. Table data does not factor in specific location which can alter insurance rates considerably.
Based upon the rates shown, we can conclude that models like the Honda Accord, Honda CR-V, Ford Escape, and Hyundai Elantra are most likely to be some of the cheapest vehicles to insure for older drivers.
Finding out which company offers the lowest-priced car insurance rates for drivers over age 60 calls for a little more work in order to find the lowest price.
Each auto insurance company has their own process to set premium rates, so let’s take a look at the car insurance companies with the most affordable rates in Detroit, MI. It’s important that readers know that Michigan car insurance rates are determined by lots of factors that may substantially change the price you pay for coverage. Getting older, increasing liability limits, or getting a couple of tickets may cause policy rate changes resulting in some rates now being much cheaper than others.
Compare Cheap Insurance Quotes for Age 60+
|Rank||Company||Cost Per Year|
|7||Pioneer State Mutual||$1,488|
|18||Auto Club Group||$2,489|
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USAA offers some of the best car insurance rates in Detroit at around $978 each year. This is $1,415 less than the average premium paid by Michigan drivers of $2,393. GEICO, Safeco, MetLife, and Chubb also qualify as some of the cheapest Detroit, MI insurance companies.
In this example, if you are insured with Chubb and switched to GEICO, you could realize an annual premium reduction of about $395. Drivers with MEEMIC might save as much as $403 a year, and Pioneer State Mutual insureds might reduce prices by as much as $455 a year.
If you would like to find cheaper car insurance rates, click here to get a free quote or visit any of the companies below.
Bear in mind that those policy rates are averaged across all drivers and vehicles in Michigan and are not factoring in an exact zip code location for drivers over age 60. So the car insurance company that fits your needs best may not even be in the list above. That helps illustrate why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.
Does it make sense to buy full coverage?
Saving on car insurance is important to the majority of people, and an effective way to save on the cost of insurance for drivers over age 60 is to buy liability only. The diagram below illustrates the comparison of car insurance costs with full coverage compared to only the Michigan minimum liability coverage. The costs are based on no accidents, no driving violations, $250 deductibles, drivers are single, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage costs $4,820 per year over having just liability coverage. That may make you wonder if it’s worth it to buy full coverage. There is no definitive formula of when to stop paying for physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of having full coverage is 10% or more of the settlement you would receive from your company, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s replacement value is $5,500 and you have $1,000 policy deductibles. If your vehicle is totaled, the most your company will settle for is $4,500 after the deductible is paid. If you are currently paying more than $450 annually for your policy with full coverage, then it could be time to drop full coverage.
There are a few situations where removing full coverage is not recommended. If you haven’t satisfied your loan, you have to keep full coverage to protect the lienholder’s interest in the vehicle. Also, if you cannot afford to purchase a different vehicle in the even your car is totaled, you should keep full coverage in place.
The information below shows how choosing a deductible can increase or decrease insurance prices when quoting cheap insurance for drivers over age 60. Data assumes a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 40-year-old driver could cut expenses by $480 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $728 by selecting a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could roll back prices up to $1,602 every year by using higher deductibles when buying full coverage.
When using a larger deductible, it will be necessary to have enough in a savings account to allow you to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Ideas for buying budget-friendly auto insurance for drivers over age 60
Here are some thrifty suggestions that can help you get more affordable coverage.
- You will pay more if you get tickets or have at-fault accidents
- Increase your policy deductibles
- Save money by staying claim-free
- Avoid preventable accidents
- Clean up your credit rating
- Bundle home and auto and save
- Comparison shop at least once a year
The last item on the list is especially crucial, as was stressed in this write-up. Coverage prices in Detroit vary greatly, so don’t be afraid to change insurance companies if a more affordable rate is found. Having brand loyalty is commendable, but it isn’t a good idea if that faithfulness ends up costing you a lot of money every month. It only takes a couple minutes to compare rates and find cheaper auto insurance for drivers over age 60.