For senior citizens, one of the big considerations that determine auto insurance rates is where you normally keep your vehicle. Cities with larger populations likely pay more, whereas areas with less crime or weather claims benefit from having to pay less for coverage.
The illustration below lists the most expensive areas in North Carolina for seniors to purchase a policy in. Raleigh makes the list at #16 with an annual cost of $744 on average, which is approximately $62 monthly.
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Table data uses comparative as the specific geographic location can lower or raise premiums noticeably.
Trying to buy low-cost car insurance is challenging, and figuring out which companies quote the lowest-priced insurance rates for seniors requires a bit more work. Every auto insurer has a proprietary method to set their prices, so first we will examine the insurance companies that tend to have lower prices in North Carolina.
We do need to point out that Raleigh, NC insurance rates are based on many factors which can substantially decrease or increase the policy price. Improving your credit score, buying a higher-value vehicle, or getting into an accident may cause policy rate changes resulting in some rates now being higher when they were quite affordable.
Cheapest Insurance Rates for Mature Drivers
Utica National quotes some of the most affordable car insurance rates in Raleigh at around $655 a year. Progressive, Liberty Mutual, Titan, and NC Farm Bureau would also make the list of some of the lowest-priced Raleigh, NC car insurance companies.
As the example above demonstrates, if you are a customer of Titan and switched to Utica National, you might see annual savings of upwards of $74. North Carolina drivers with NC Farm Bureau might save as much as $75 a year, and Penn National customers might reduce prices by as much as $84 a year.
Understand that those estimates are averages for all drivers and vehicles in North Carolina and and are not calculated with a specific zip code for seniors. So the insurer that is best for you may not even be in the list above. That underscores the importance of why you need to quote rates from as many companies as possible using your own individual information.
The vehicle you are buying coverage for is probably the largest consideration when trying to find the cheapest auto insurance for seniors. Vehicles with lower performance, an excellent safety record, or a low likelihood of having liability claims will cost substantially less to insure than high performance models.
The table below ranks auto insurance rates for some of the most economical automobiles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape Limited 2WD||$802|
|Honda CR-V EX-L 4WD||$807|
|Dodge Grand Caravan SE||$876|
|Ford Edge Limited 2WD||$909|
|Chevrolet Impala LS||$919|
|Chevrolet Malibu LS||$926|
|Jeep Grand Cherokee Laredo 4WD||$934|
|Toyota Camry LE||$926|
|Volkswagen Jetta S 4-Dr Sedan||$932|
|Toyota RAV4 Limited 4WD||$926|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$946|
|Ford Explorer Limited 2WD||$952|
|Ford F-150 XLT Crew Cab 4WD||$946|
|Ford Focus SES 4-Dr Sedan||$959|
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Prices above based on married male driver age 60, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include safe-driver, multi-policy, multi-vehicle, homeowner, and claim-free. Rates do not factor in specific location which can lower or raise rates greatly.
Based upon these rates, you can figure that cars like the Ford Escape, Honda CR-V, Toyota Prius, and Dodge Grand Caravan should be some of the cheapest vehicles to insure for senior citizens.
Does full coverage make sense?
Reducing the cost of insurance should be important to most people, and an easy way to find cheap insurance for seniors is to only buy liability coverage. The chart below visualizes the comparison of insurance prices with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data assumes no driving violations, no at-fault accidents, $100 deductibles, drivers are single, and no discounts are applied to the premium.
If averaged out across all ages, physical damage coverage costs an extra $1,918 per year over and above liability coverage. That touches on the question if paying for full coverage is worth it. There is no written rule to delete comprehensive and collision coverage on your policy, but there is a general convention. If the annual cost of coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might want to consider buying only liability coverage.
For example, let’s assume your vehicle’s settlement value is $10,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $9,500 after paying the physical damage deductible. If you are paying in excess of $950 a year for comprehensive and collision coverage, then it might be time to consider dropping full coverage.
The chart below highlights how deductible selection can raise or lower insurance premiums when searching for cheap insurance for seniors. The rate quotes are based on a married male driver, comp and collision included, and no policy discounts are applied.
In the chart above, a 40-year-old driver could lower rates by $240 a year by changing from a $100 deductible to a $500 deductible, or save $366 by switching to a $1,000 deductible. Younger drivers, such as the Age 20 example, could lower their rates as much as $808 each year by choosing a higher deductible.
If you do make the decision to raise your deductibles, it is necessary to have emergency funds available to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Shop around and save
Raleigh, NC insurance rates are impacted by many things which can substantially change the price you pay for coverage. Improving your credit rating, getting married, or getting a speeding ticket may generate price changes resulting in some rates now being cheaper in comparison to the competition.
Not only may your situation change, but insurers change prices without warning in order to remain profitable. Heavier than normal losses can cause a rate increase, while a better loss history can cause lower-cost Raleigh car insurance rates.
To help illustrate this point, the chart below shows which company has the cheapest car insurance in Raleigh, NC for a 30-year-old female driver with no prior claims, no tickets, and a good credit history. If we compare prices based on her personal risk profile, Progressive may have the most affordable car insurance rates in Raleigh at $691 each year. This is $181 less than the average rate paid by North Carolina drivers of $872. Utica National, Liberty Mutual, NC Farm Bureau, and Penn National are the remainder of the cheapest Raleigh, NC auto insurance companies.
Now we will give the driver in the first example a chargeable claim, a little lower credit rating, and a couple of points charged on her driving record. Because every insurance company uses their own calculation for setting rates, getting updated rate quotes may now result in a slightly different list of the cheapest companies as shown below.
Titan now has the lowest car insurance rate in Raleigh with State Farm, Utica National, Auto-Owners, and Erie also being competitive. This demonstrates why consumers need to take the time to shop around to get the cheapest auto insurance rates for seniors.
Insurance rates consist of many different factors and can change substantially, so the best price when you bought your policy may now be wasting a lot of money.
How to find economical insurance for seniors
It’s not impossible to find cheaper rates, and here are some penny-pinching ideas that can help drivers quote cheap auto insurance.
- Higher deductibles save money
- Buy a safer vehicle
- Being accident-free can lower rates significantly
- Serious violations like DUI or careless driving can make car insurance unaffordable
- Drivers with good credit ratings often pay less
- Comparison shop frequently
The last tip in the list is especially significant, as we noted in the article above. Car insurance prices fluctuate constantly, so drivers shouldn’t be resistant to switch companies if a more affordable price is available.
Many drivers have brand loyalty and that’s fine, but it’s not a great idea if that inflexibility results in costing you a small fortune. If you have a few minutes, now is a great time to compare prices and find cheaper car insurance for seniors in Raleigh.