The words "economical" and "insurance" really should not be used together, especially when you are looking for the cheapest car insurance for seniors. To save some money, let's take a look at some things that significantly impact insurance premiums, and find a few ways to lower the cost of the next policy you buy.
The vehicle model that needs insurance is one of the largest factors when looking for the cheapest coverage for seniors. Vehicles with average performance, excellent safety ratings, or a low likelihood of liability claims will cost substantially less to insure than adrenaline junky models. The table below features coverage premiums for a number of the most budget-friendly automobiles to insure in Indiana.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$464|
|Ford Escape XLT 4WD||$475|
|Dodge Grand Caravan CV||$521|
|Chevrolet Impala LS||$539|
|Ford Edge Limited 2WD||$546|
|Chevrolet Malibu Hybrid||$551|
|Toyota Camry LE||$558|
|Nissan Altima 2.5 4-Dr Sedan||$551|
|Toyota RAV4 Limited 2WD||$561|
|Ford Explorer Eddie Bauer 4WD||$561|
|Ford F-150 FX2 2WD||$569|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$561|
|Honda Civic LX-S 4-Dr Sedan||$568|
|Toyota Corolla LE||$580|
|Hyundai Elantra GLS 4-Dr Sedan||$586|
|Honda Odyssey EX-L W/Rear Entertainment||$580|
|Nissan Rogue S 2WD||$590|
|Volkswagen Jetta SE 4-Dr Sedan||$595|
|Chevrolet Equinox LTZ AWD||$590|
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Table data assumes married male driver age 60, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include homeowner, multi-vehicle, safe-driver, multi-policy, and claim-free. Prices do not factor in vehicle location which can influence premium rates considerably.
Based upon these rates, we can expect cars like the Honda CR-V, Ford Escape, Toyota Prius, Dodge Grand Caravan, and Chevrolet Impala are the most budget-friendly vehicles to insure for senior citizens.
Finding dependable, affordable insurance is not most people's favorite thing to do, and figuring out which company has the cheapest auto insurance rates for seniors in Indiana takes additional perseverance. Policy rates will more than likely be a little bit less expensive than the average rate in Indiana attributed to the decrease in risk that comes with offering insurance for senior citizens. Reasonably-priced insurance should be easily found from many providers.
Each insurance company has a proprietary formula for setting rates, so we need to take a look at the most affordable auto insurance companies in Indiana. Keep in mind that Indiana auto insurance rates are determined by lots of factors which can substantially change the policy price. Simply getting older, buying a different vehicle, or having a fender bender can trigger changes in premium that can cause some rates to be cheaper than others.
Find the Cheapest Auto Insurance for Mature Drivers
Travelers quotes some of the most affordable car insurance rates in Indiana at around $614 each year. This is $626 less than the average price paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also rank well as some of the cheapest Indiana auto insurance companies.
As shown in the rates above, if you are a policyholder with Cincinnati Insurance and switched to Travelers, you could earn an annual premium reduction of approximately $64. Drivers with USAA may save as much as $67 a year, and Erie insureds might lower prices by $98 a year.
Remember that these policy prices are averaged across all insureds and vehicles and are not factoring in a price decrease for seniors. So the insurer that fits your needs best may not even be in the list above. That underscores the importance of why you need to compare as many prices as possible using your own specific driver and vehicle information.
Drive responsibly or pay higher rates
In a perfect world, the ideal way to receive the best auto insurance rates in Indiana for senior citizens is to drive carefully and avoid tickets and accidents. The chart below illustrates how traffic citations and accident claims raise annual premium costs for different ages of insureds. The information is based on a married female driver, comp and collision included, $500 deductibles, and no policy discounts are applied.
In the previous chart, the average cost of auto insurance in Indiana per year with no accidents and a clean driving record is $1,357. Add in one speeding ticket and the average cost rises to $1,582, an increase of $225 each year. Now get two accidents along with the one speeding ticket and the 12-month cost of auto insurance for seniors in Indiana increases to an average of $3,624. That's an increase of $2,267, or $189 per month, just for not driving safely!
The illustration below shows how choosing a deductible can impact premium costs when quoting cheap insurance for seniors in Indiana. The premiums assume a single female driver, comprehensive and collision coverage, and no discounts are applied.
A 50-year-old driver could lower their car insurance rates by $222 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $334 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old example, could shave $566 each year by choosing larger deductibles on their policy. If you do make the decision to raise your deductibles, it will be necessary to have enough savings to allow you to pay the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Why you should be shopping around
Indiana auto insurance rates are determined by lots of factors which can significantly increase or decrease your annual premium. Improving your credit rating, becoming a homeowner, or getting a reckless driving citation may generate price changes resulting in some rates now being cheaper in comparison to the competition.
Not only that, but auto insurance companies change rates without warning in order to be able to pay unexpected claims. An unexpected high level of claims can result in higher priced premiums, while lower claims may result in lower-priced Indiana car insurance rates.
For example, the bar chart below shows which company has the cheapest car insurance in Indiana for a 40-year-old male driver with no accidents, a clean driving record, and a high credit rating. When quoting prices based on his current risk factors, Travelers offers the cheapest car insurance rates in Indiana at $602 each year. This is $638 less than the average price paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve are also on the list of the top five cheapest Indiana auto insurance companies.
Now we will pretend the driver in the first chart an at-fault accident, poor credit, and a speeding ticket. Since each auto insurer uses their own formula to set premium rates, comparing prices could now result in a different set of the cheapest car insurance companies in Indiana as shown below.
Auto-Owners now has the best price on car insurance in Indiana with The Hartford, USAA, Cincinnati Insurance, and Nationwide completing the list. This example proves why consumers need to compare as many rates as possible when trying to find affordable insurance rates for seniors. Insurance rates are determined by many factors and change dramatically, so the cheapest option the last time you checked may now be one of the more expensive options.