Auto insurance costs continue to skyrocket with no sign of prices slowing down.
According to a recent U.S. Bureau of Labor Statistics report published by Yahoo Finance, auto insurance topped the list of escalating household commodities, with costs rising by 11.1 percent over the past year.
In real dollar terms, the average cost for auto insurance in the United States is expected to rise to $2,101 in 2025, according to The State of Auto Insurance in 2025 report published by ValuePenguin.com.
Consumers in New Jersey, Washington, and California will be especially hard hit, as auto insurance premiums in those states will likely rise by over 15 percent in 2025, the study noted.
“Insurers raised rates by an average of 16.5 percent in 2024, but an analysis by the Bureau of Labor Statistics showed that Americans were paying 19 percent more for auto insurance on average vs the prior year,” said Divya Sangameshwar, an insurance expert at ValuePenguin.com in a statement.
“The discrepancy is likely due to driver-led factors like new car purchases, traffic tickets, changing credit scores, or changes in coverage. Although rates aren’t expected to increase as steeply in 2025 compared to 2024, rates are still trending upward, and as a result, auto insurance payments will still be a financial strain for some in the new year.”
For American seniors living on a fixed income, skyrocketing auto insurance costs can strike a blow to their household budgets, especially in two-vehicle families.
The good news is that there are ways for seniors to curb the high cost of auto insurance, with a healthy dose of discipline and creativity.
These three action steps can make a big difference in lowering auto insurance bills for older drivers.
Do Your ‘Discount’ Homework
Insurance companies want your business and will offer discounts of up to 20 percent if you bundle home and auto insurance with one provider. Some insurers will offer better discounts if you insure multiple family vehicles. You can also take a defensive driving course, which can offer up to a 15 percent discount. Driving safely and accident-free can also add up to a 10 percent discount.
Ask for a Low Mileage Discount
Since many older Americans are retired and not commuting to work, it’s worth asking your auto insurer for a low-mileage discount on your policy. While policies vary from company to company and state to state, auto insurance consumers who limit their annual driving to 5,000 to 7,500 miles can save up to 15 percent on their auto insurance.
Install Anti-Theft Devices
Seniors can save a few more bucks by loading up anti-theft devices for their vehicles. Common anti-theft options include audible alarms, steering wheel locks, ignition kill switches, and vehicle tracking systems can significantly reduce auto insurance bills.
Some companies offer sizable discounts for anti-theft devices. For example, Esurance has offers ranging from 5 percent to 25 percent, and Geico from 5 percent to 23 percent. Additionally, with a good anti-theft package, seniors reduce the chances of having their car stolen or broken into.
Takeaway on Senior Driver Auto Insurance Discounts
Older drivers can also save on car insurance by shopping for multiple online insurance quotes and paying their annual auto insurance policy in one payment. Check with your insurance provider to see if they have options for cutting your policy costs.
