Cheap Car Insurance For Seniors In Texas 2024

Senior drivers make up 21.8% of all drivers on the road today. In Texas, that figure increases to over 33%, representing a 16.9% increase over the last 30 years.

With the third largest population of people over the age of 50 across the United States at 9 million and projected to reach over 16 million by 2050, Texas also has the third largest demand for affordable car insurance for seniors.

With over 15 years of experience in the Texas insurance industry, I’ll share insights to guide you in making a well-informed choice.

Cheapest Car Insurance For Seniors In Texas

Affordable car insurance is vital for seniors on a fixed income. In Texas, GEICO stands out as the most cost-effective option, offering competitive rates and a wide range of discounts. GEICO’s comprehensive coverage options come with an average annual premium of $1,270. Seniors can take advantage of discounts like safe driver, multi-vehicle, and defensive driving, making GEICO a top choice for affordability.

Cheapest Car Insurance In Texas For Seniors Over 65

For seniors over 65, car insurance rates can fluctuate depending on driving habits and health. GEICO provides the most competitive rates for this age group, with an average annual premium of $1,301. GEICO’s discounts and usage-based programs are designed to benefit older drivers who may drive less frequently, helping to keep their costs low.

Affordable Car Insurance In Texas For Seniors Over 70

As drivers get older, their insurance rates often rise due to a perceived increase in risk. Nonetheless, State Farm provides the lowest rates for seniors over 70, with an average annual premium of $1,150. State Farm’s policies are specifically designed for senior drivers, offering affordable and comprehensive coverage.

Cheapest Auto Insurance In Texas For Seniors Over 75

For seniors over 75, GEICO continues to be a leading option, with an average annual premium of $1,428. GEICO’s discounts for safe and defensive driving make it a budget-friendly choice for older drivers.

Cheapest Car Insurance In Texas For Seniors Over 85

Seniors over 85 often face higher insurance rates due to increased health risks and the likelihood of accidents. Despite this, GEICO provides competitive rates, with an average annual premium of $1,939, bolstered by its various senior discounts.

Cheapest Auto Insurance In Texas For Seniors With A Ticket

A driving ticket can cause insurance rates to rise significantly. Nationwide offers the most affordable rates for seniors with a ticket, averaging $1,714 per year. Nationwide’s lenient policies and discounts for keeping a clean record after a ticket make it a great option.

Cheapest Texas Car Insurance For Seniors With A DUI

A DUI on record can significantly increase insurance premiums. State Farm offers the most affordable rates for seniors with a DUI, averaging $2,230 annually. State Farm’s specialized programs help offset the cost increases related to a DUI.

Cheapest Senior Car Insurance In Texas For Good Drivers

Good drivers usually benefit from lower insurance premiums. GEICO provides the lowest rates for seniors with a clean driving record, averaging $1,270 annually. GEICO’s numerous good driver discounts make it a great option for those with an excellent driving history.

Cheapest Car Insurance For Seniors After An Accident

After an accident, insurance rates can soar. Nationwide offers the best rates for seniors post-accident, with an average annual premium of $2,140. Their accident forgiveness programs help keep costs manageable.

How Much is Car Insurance for Seniors in Texas?

Car insurance for seniors in Texas is based largely on age, coverage type, and vehicle type. Rates for seniors go up by an average of 15% at the age of 70 or higher due to age-related risks. However, there are several discounts that can help reduce these costs.

Seniors in Texas typically pay between $800 and $2,000 annually for full coverage on average. This estimate includes various discounts and coverage levels. The table below shows the average annual costs for five popular providers for seniors in Texas.

Factors Influencing Senior Car Insurance Rates In Texas

What factors influence car insurance rates for seniors?

Age

Car insurance rates for seniors in Texas drop significantly after age 55 particularly in comparison to younger drivers. However, between 65 and 75, the average car insurance rates will increase 15%.

Driving Record

The Texas DMV point system is designed to affect your license and driving privileges but each insurance company has a unique point system to determine the cost of your insurance premiums based on your driving history including:

1. Moving violations
2. Accidents
3. Claims

Mileage

How often you drive has one of the biggest discounts on overall cost with several unique programs offering pay per mile coverage plans for those seniors who don’t drive very often.

Coverage Level

Texas requires $30,000 for liability coverage for every insured individual, $60,000 total liability coverage per accident, and $25,000 in property damage coverage per accident. you can purchase more comprehensive coverage for things like:

1. Collision
2. Comprehensive for non-collision events
3. Medical payments
4. Personal injury protection
5. Towing and labor
6. Rental reimbursement

Discounts

Seniors might be eligible for different discounts based on having multiple policies from the same provider, keeping the same insurance provider for several years, having a clean record, and taking defensive driving courses.

Why Do Car Insurance Rates Increase For Seniors?

Car insurance rates increase for seniors based on several age related factors and driving behaviors.

Age

In Texas, between 65 and 75, the average car insurance rates will increase 15%.

Accident Risk

Tangentially, the older you are, the more risk you pose for accidents because of hearing impairments, slower reflexes, and reduced vision.

Health

Similarly, the older you are the more likely you are to experience chronic health conditions or be prescribed medications that can impair your driving abilities causing things like drowsiness or dizziness and increasing your accident risk because of slower responses.

Injury

Seniors are at a higher risk of injury because of slower recovery rates as well as damage from osteoporosis which can increase the cost of car insurance settlements, and subsequently, the cost of car insurance premiums.

Claim History

Seniors are at a higher risk of involvement in car accidents both at fault and otherwise which means there is a greater risk of frequent claims which can increase the cost.

Travel Frequency

How frequently a driver travels will directly impact the risk of things like car accidents which means that seniors can often get discounts for reduced mileage.

How Can Seniors Save On Car Insurance?

Seniors have various strategies to lower their car insurance premiums. Here are some effective methods to save money:

Take Advantage of Discounts

Many insurance companies provide discounts specifically for senior drivers. These may include:

• Defensive Driving Course Discount: Seniors who complete an approved defensive driving course can receive significant discounts. These courses help refresh driving skills and update traffic law knowledge.
• Low Mileage Discount: Seniors who drive fewer miles can qualify for low mileage discounts. Usage-based insurance programs track mileage and offer savings for reduced driving.
• Safe Driver Discount: Seniors who maintain a clean driving record without accidents or violations can earn a safe driver discount.
• Multi-Policy Discount: Bundling car insurance with other insurance types, such as home or renters insurance, can lead to multi-policy discounts.

Review and Adjust Coverage

Seniors should regularly review and adjust their coverage needs:

• Raise Deductibles: Increasing deductibles can reduce premiums, but make sure the deductible is affordable if a claim is necessary.
• Reduce Coverage on Older Cars: Consider dropping collision and comprehensive coverage on older vehicles if the car’s value doesn’t justify the expense.
• Consider Usage-Based Insurance: Programs like State Farm’s Drive Safe & Save or Allstate’s Drivewise provide discounts based on actual driving habits. Seniors who drive safely and infrequently can save money.

Shop Around

Seniors can find the best rates by comparing quotes from multiple insurance providers through Insuranceopedia. Since each company uses different criteria to calculate premiums, shopping around can uncover significant savings.

Maintain a Good Credit Score

In certain states, insurance companies use credit scores to set premiums. Keeping a good credit score can lead to lower insurance rates.

Install Safety Devices

Adding safety features like anti-theft devices, airbags, and anti-lock brakes to your vehicle can result in extra discounts. These features lower the risk of accidents and theft, making insurance less costly.

Consider Group Insurance

Joining organizations like AARP can grant access to group insurance plans at reduced rates. These plans often come with extra benefits and discounts for members.

Ask About Senior Discounts

Some insurers provide special discounts for senior drivers. It’s beneficial to inquire with your insurance company about any age-related discounts they may offer.

Regularly Review Insurance Needs

As seniors’ driving habits evolve, their insurance needs also change. Regularly reviewing and adjusting coverage can help avoid paying for unnecessary insurance. By utilizing these strategies, seniors can manage and lower their car insurance expenses, ensuring they get the best value for their coverage.

Car insurance discounts for seniors

Car insurance companies offer various discounts for seniors. Here are some common ones to keep an eye out for:

Company-Specific Discounts

Each company offers a specific range of potential discounts for seniors in Texas. Seniors in Texas can find things things like the following:

• Texas auto insurance discount for vehicles with qualifying anti-theft devices installed.
• Up to 30% in discounts for being a safe driver with a verifying device setup in your vehicle.
• Discounts for insuring multiple vehicles.
• Discounts for combining insurance policies under the same company like car, life, health, house, renters, or condo insurance.
• Discounts for having a newer model vehicle.
• Loyalty discounts for remaining with the same company for several years, usually increasing in discount percentage the longer you remain with the same company.
• Installing passive restraint systems and airbags in older vehicles.

Defensive Driving Courses

Many people know about defensive driving or “traffic school” after they get a ticket. However, according to the Texas Department of Insurance, drivers can get discounts on car insurance for seniors in Texas by proactively taking an online defensive driving course.

Those who have completed a course save up to 10% on their car insurance. Let’s look at an example:

Margaret lives in Corpus Christi. She just completed an approved online course. Her current annual premium is $3,100 and she saves 10% each year for 3 years by completing an online defensive driving course once. That means she saved $930 over the course of 3 years.

Note: Qualifying courses must be approved by the Texas Education Agency and taught through approved TEA schools or course providers under Texas Civil Statutes, Article 4413 (29C). 

The table below indicates the percentage that can be saved by top providers in Texas after completing a defensive driving course:

Companies vary in terms of what the discount is based on age and driving record so it’s important to speak with your insurance representative to get a more personalized quote.

2. Low Mileage Discount

Seniors in Texas who drive less than 7,500 miles per year can get discounts up to 20% off their premium.

Safe Driver Discounts

Texas does not have a direct point system used to increase or decrease car insurance rates. You will still be given points for things like moving violations and they count against a license. if you have seven or more convictions or violations in a 24-month time frame, your license gets suspended.

That said, the DMV license point system is not used by car insurance companies. In Texas all car insurance companies have proprietary point systems they use to determine how much to raise or lower your insurance premiums based on your history of moving violations and accidents.

For example, a serious speeding ticket can still increase your premiums by an average of 13% depending on your insurance provider.

However, insurance providers like 21st Century Insurance give additional discounts between 10% and 20% to drivers over the age of 55 who have a driving record free from any tickets or accidents over the span of several years.

Note: Drivers with very poor records can be refused insurance especially if there are serious infractions like multiple DUIs. 

4. Multi-Policy Discount

Seniors who combine their car insurance with other types, like home or renters insurance, can benefit from a multi-policy discount. Bundling with the same insurer often results in substantial savings.

5. Good Student Discount

Although it doesn’t directly affect seniors, having good student grandchildren on their policy might qualify them for a discount. This typically requires the students to maintain a specific grade point average.

6. Vehicle Safety Discount

Adding safety features like anti-lock brakes, airbags, and anti-theft devices to your vehicle can lead to a discount. These enhancements lower the risk of accidents and theft, which can reduce insurance costs.

7. Usage-Based Insurance Discount

Programs such as State Farm’s Drive Safe & Save and Allstate’s Drivewise monitor driving habits and provide discounts for safe driving. Seniors who drive infrequently and practice safe driving can enjoy lower premiums.

Pay-Per-Mile

Texas has alternative programs for car insurance discounts that include a pay-per-mile set up. You can find these with exclusive pay-per-mile insurance providers or big names like Nationwide.

This is an ideal program or discount for seniors in Texas who don’t have a commute, no longer go to work, or rarely drive.

With this program you pay a low monthly rate for your car insurance and then a fixed amount per mile that you drive.

For example:

Margaret switched to a pay per mile program and she now pays $29 per month and a rate of six cents per mile that she drives each month. Last month Margaret drove 450 miles which, combined with her monthly fee meant her car insurance was $56 for the month.

Car insurance for seniors in Texas can drop by an average of 35% for those who have a vehicle they use sparingly if they switch from a low mileage discount to a pay-per-mile insurance plan.

The average cost of car insurance for seniors in Texas, 65 years old, is a $76 per month premium or a $822 annual premium.

If a driver has an insurance policy that offers 10% off for low mileage, that means a 65-year-old is paying $66 per month. If that same individual, like Margaret, drove very sparingly, it would be cheaper to switch to something like a pay per mile plan. However, if someone like Margaret not only got a discount for low mileage but had combined discounts for loyalty programs and other affiliations, it might be cheaper to stick with a traditional plan.

8. Affinity Group Discount

When you are part of organizations like the AARP, you can often get discounts on insurance policies.

9. Homeowner Discount

Some providers in Texas give discounts for retirees who own their homes.

10. Loyalty Discount

Insurance companies frequently offer loyalty discounts to long-term customers. Continuing with the same insurer for multiple years can lead to reduced premiums over time.

Cheapest Car Insurance Rates for Senior Drivers – By U.S. State

For senior drivers, securing the most affordable car insurance is crucial due to unique challenges and risks they face. This section offers a detailed look at the lowest insurance rates for seniors across various states, including the carriers providing these competitive prices. By comparing these options, senior drivers can make well-informed choices that balance cost and coverage.