Cheap Auto Insurance for New Drivers Over 20 (2023)
Being an older driver doesn't automatically qualify you for discounts on auto insurance for older new drivers. In fact, when it comes to driving, your age can affect your rates negatively, especially if you're a new driver. One way to save on auto insurance is by looking for group rates through an insurer that offers special rates to members of organization you belong to.
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Joel Ohman
CEO and CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joe...
CEO and CFP®
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- New drivers are considered a risk at any age when they are buying a car insurance policy
- There are many different types of drivers that all require different insurance coverage
- Age does play a role in rating drivers, but experience is often a more important premium rating factor
- If you’re shopping around, make sure to be honest about the date you were licensed
- Find out if you’ll be able to qualify for any type of training discounts if you take Mature Driver Training
- Consider your income and your assets when you’re choosing which coverage limits will be sufficient
Older drivers are just as vulnerable to auto insurance rate increases as teen drivers.
If you’re in the process of getting your license later on in life, you have to budget for a lot more than a car payment. Car ownership can be expensive, especially when you have to pay for insurance coverage as an inexperienced driver.
The only way that you can effectively find a value-priced car insurance policy is to shop around. Enter your ZIP code into our free rate comparison tool above to get started.
As an older driver, you may have access to coverage through some of the leading providers that are geared towards insuring seniors and their families. It’s best that you determine how much coverage is appropriate first and shop around later.
Here’s a guide specifically for older new drivers:
Your Rates May Be Higher Than You Expected
Most people agree that wisdom comes with age. As you get older, you’re able to base your ideas and opinions off of life experiences that have shaped you as a person. Without experience, you can’t have wisdom.
Since you’re older and wiser than a lot of the 210 million licensed drivers in the United States, you’d assume that you’ll pay less for your insurance.
Unfortunately, being an older driver doesn’t automatically qualify you for discounts. In fact, when it comes to driving, your age can affect your rates negatively, especially if you’re a new driver.
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Why does age affect your car insurance premiums?
Even experienced drivers pay the price for aging when they renew their auto insurance every year. You’re not alone when you question why your rates are on the rise.
There are more than 38.6 million licensed drivers who are 65 and older who all have to pay a surcharged insurance rate just because they’re seniors.
To an auto insurance company, senior drivers pose the risk that they will lose revenues. Money that’s dedicated to claims settlements can be classified as lost revenues.
Since older drivers account for more than 17 percent of fatality accidents and 37 percent of intersection crashes, there’s a huge likelihood that aging drivers will file a claim that the company has to pay.
Why do new older drivers pay more than experienced older drivers?
Age is one of those things that you can’t change. Unfortunately, if you want to drive into your golden years, you’ll pay the price because drivers in your age group tend to lose some of their driving skill in retirement.
Being an older driver isn’t the only reason your rates will be high, you’ll also pay the price because you’re inexperienced.
For some companies, age and experience are premium rating factors that go hand-in-hand. Other carriers will consider age and experience differently because not all people test for their license at 16. Like you, a lot of the population wait until later in life to get licensed.
Experience is generally a good thing. Since experience works in all drivers’ favors, it doesn’t help at all to be a senior driver who also isn’t getting credit for years of licensing experience.
Without these credits, you’ll be paying a high-risk rate similar to the rate that a teen driver with no actual behind-the-wheel experience pays.
Why is it so important for older new drivers to shop around?
All consumers looking for a low rate on their personal car insurance should shop around, but it’s even more important for recently licensed drivers to spend the time comparing rates.
Without doing a thorough review of what’s available on the market, you could pay more than an 18-year-old who has just bought their own car.
Premiums can range from very expensive to shockingly affordable. Just because a company gives you an all-time low quote doesn’t mean that it’s the carrier for you. Some companies offer low rates to build a big book-of-business that they won’t service.
You need to really commit to getting several quotes to see which respected carrier has fair pricing for older drivers.
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Does it help to be a member of an organization?
You can get insurance from a carrier that serves all licensed drivers in the US, but you might be able to get group rates if you shop for coverage through an insurer that offers members of your organization special group rates.
Being a retired member of a professional organization is one way to get these discounted rates.
One of the most popular associations that all older drivers can join is the AARP. As a member of the AARP, you can get tons of senior discounts and also receive help navigating life through retirement.
One of the discounts you’ll get is on auto insurance through AARP-branded companies like The Hartford.
Can you save money on your insurance if you’re retired?
If you’re securing a license in retirement so that you can freely travel the globe, you could save off of your coverage because you don’t have a commute to the office. Here are some ways an older driver can save:
- Not having a daily commute – A pleasure rating is the lowest usage rating that you can receive.
- Not driving many miles – If you drive less than the average person on top of that, you’ll get a low-mileage discount.
- Senior discount – You’re not young enough to get credit for taking driver training as a newly licensed driver but it’s possible that you could get a different type of training discount. Most companies looking to insure the growing population of senior drivers offer some type of Mature Driver Discount.
To qualify for a Mature Driver Discount, you have to complete a short one-day course either in person or online. The course gives you tips on driving defensively. For learning new skills, the insurer will give you a discount for a whole three years.
If you have a savings or other assets that you need to protect, you’ll need higher limits of liability than the average driver.
Get instant quotes for coverage online to start your comparison shopping. Enter your personal details in our quoting tool and you’ll be one step closer to savings.
Frequently Asked Questions
What is considered an older new driver when it comes to auto insurance?
An older new driver typically refers to individuals who are older in age but have recently obtained their driver’s license or started driving after a significant gap. The exact age range may vary between insurance companies, but it generally includes individuals who are 50 years old or above and are newly licensed or returning to driving after a period of not being insured.
Do older new drivers face different insurance challenges compared to younger new drivers?
Yes, older new drivers often face different insurance challenges compared to younger new drivers. Insurance companies consider various factors, such as age, driving experience, and claim history, when determining insurance premiums. While older drivers may have more life experience, they may lack recent driving experience, which could affect their insurance rates.
Are there any specific discounts available for older new drivers?
Many insurance companies offer specific discounts for older new drivers. Some common discounts include mature driver discounts, which may be available to drivers over a certain age who have completed an approved defensive driving course. Additionally, some insurers offer discounts for low annual mileage, safe driving records, or bundling policies (such as combining auto and homeowner’s insurance).
Are there any special considerations for older new drivers when choosing auto insurance coverage?
Yes, older new drivers should consider a few factors when choosing auto insurance coverage. Firstly, it’s important to assess your driving habits and select a coverage level that adequately protects you and your vehicle. Additionally, consider adding optional coverages such as roadside assistance or rental car reimbursement, which can provide added peace of mind. It’s advisable to review different insurance providers and compare quotes to find the best coverage options and rates for your specific needs.
Is it more difficult for older new drivers to find affordable auto insurance?
While age can be a factor in determining insurance premiums, it does not necessarily mean that older new drivers will face more difficulties in finding affordable auto insurance. Insurance rates are influenced by various factors, including driving record, location, type of vehicle, and coverage needs. Older new drivers can still find competitive rates by comparing quotes from different insurance companies and exploring available discounts.
Are there any specific coverage options recommended for older new drivers?
Older new drivers should consider adding certain coverage options to their auto insurance policy. For instance, personal injury protection (PIP) coverage can provide medical expense coverage for injuries sustained in an accident. Additionally, uninsured/underinsured motorist coverage is crucial as it protects against drivers who do not carry sufficient insurance or are completely uninsured. Consulting with an insurance agent can help determine the most appropriate coverage options based on individual needs.
How can older new drivers lower their insurance premiums?
Older new drivers can take several steps to potentially lower their insurance premiums. Here are a few tips:
- Defensive driving courses: Completing a defensive driving course specifically designed for mature drivers may qualify you for discounts with some insurance companies.
- Maintain a clean driving record: Avoiding traffic violations, accidents, and insurance claims can help establish a safe driving record, which may lead to lower insurance premiums.
- Bundle policies: Consider bundling your auto insurance with other policies, such as homeowner’s insurance, to take advantage of potential multi-policy discounts.
- Explore available discounts: Ask your insurance provider about any discounts for which you may be eligible, such as mature driver discounts or discounts for low annual mileage.
- Review coverage regularly: Periodically review your coverage needs and adjust your policy accordingly. If you no longer drive as frequently, reducing your coverage levels may help lower premiums.
Do older new drivers pay higher insurance premiums due to health conditions?
Insurance premiums are primarily based on factors related to driving risk, such as driving experience, location, and claims history. While health conditions may affect an individual’s ability to drive, they generally do not directly impact auto insurance premiums. However, it’s essential to disclose any relevant health conditions to your insurance provider as it may influence coverage decisions.
Can older new drivers be included in a family auto insurance policy?
Yes, older new drivers can be included in a family auto insurance policy. Many insurance companies offer family or multi-driver policies that allow for the inclusion of additional drivers, regardless of age. Adding an older new driver to an existing family policy may offer cost savings compared to obtaining a separate policy.
Should older new drivers consider usage-based insurance programs?
Usage-based insurance programs, such as telematics or pay-as-you-drive plans, can be beneficial for older new drivers. These programs utilize technology to monitor driving behavior, including factors like mileage, speed, and braking patterns. By demonstrating safe driving habits, older new drivers may qualify for discounts or lower premiums through these programs. It’s advisable to inquire with insurance companies about the availability and terms of their usage-based insurance options.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
CEO and CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joe...
CEO and CFP®
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.