You have seen the catchy commercials from auto insurance companies like Allstate and Liberty Mutual that say if you switch you’ll get big savings, so you should just pick one at random, right?
That is not the case, however, as there are a ton of unknowns like what deductibles to use for physical damage coverage, if you currently have coverage, if you own your own home, and your credit history. This article goes into detail about the best ways to avoid high prices and will hopefully give you a good start in finding the cheapest insurance.
Comparing rates for reasonably-priced auto insurance is confusing at best, and determining which company has the most affordable insurance rates for drivers over age 60 will require additional perseverance. Each auto insurer uses their own method for setting prices, so let’s take a look at the lowest cost insurance companies in North Carolina.
Best Insurance Companies for Age 60+
|Rank||Company||Cost Per Year|
|4||NC Farm Bureau||$709|
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Utica National may have some of the cheapest car insurance rates in Durham at around $636 a year. Progressive, Liberty Mutual, NC Farm Bureau, and Penn National would also be considered some of the cheapest Durham, NC car insurance companies.
As shown above, if you are a customer of Liberty Mutual and switched to Utica National, you might realize yearly savings of in the neighborhood of $64. Policyholders with NC Farm Bureau may save as much as $73 a year, and Penn National insureds might reduce prices by as much as $89 a year.
Be aware that those estimates are averaged for all drivers and vehicles and and are not figured with a vehicle location for drivers over age 60. So the car insurance company that fits your needs best may not even be in the top 20 companies in the list above. That’s why you need to compare rates from multiple companies using your own specific driver and vehicle information.
One of the more important criteria that help determine car insurance rates is where you call home. Areas with more people or even just a higher incidence of claims are more likely to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates can boast about having cheaper rates.
The illustration below lists the most costly cities in North Carolina for drivers over age 60 to buy car insurance in. Durham shows up at #6 with an annual rate of $773 for the average insurance policy, which is approximately $64 each month.
|Rank||City||Average Per Year|
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Rate information is estimated as zip code location can impact price quotes considerably.
The vehicle you are seeking coverage for is one of the primary factors when trying to find the most economical car insurance for drivers over age 60. Vehicles with more horsepower, poor safety features, or a history of substantial liability claims will cost more to insure than more modest models. The information below ranks insurance prices for a selection of the most affordable automobiles to insure in North Carolina.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$1,086|
|Ford Escape XLT 2WD||$1,094|
|Ford Edge SE 2WD||$1,194|
|Ford F-150 XLT Regular Cab 2WD||$1,199|
|Jeep Wrangler Rubicon 4WD 2-Dr||$1,215|
|Honda Odyssey EX||$1,263|
|Toyota RAV4 2WD||$1,284|
|Ford Fusion S 4-Dr Sedan||$1,292|
|Ford Explorer Limited AWD||$1,308|
|Dodge Grand Caravan Crew||$1,317|
|Toyota Tacoma Double Cab 4WD||$1,308|
|Ford F-350 XL Super Cab 2WD||$1,332|
|Hyundai Elantra Blue 4-Dr Sedan||$1,334|
|Toyota Camry XLE||$1,356|
|Chevrolet Impala LTZ||$1,365|
|Chevrolet Silverado LT Regular Cab||$1,380|
|Chevrolet Malibu LTZ||$1,385|
|Chevrolet Equinox LTZ AWD||$1,380|
|GMC Sierra SL Crew Cab 2WD||$1,386|
|Toyota Corolla XRS||$1,380|
|Jeep Grand Cherokee Limited 4WD||$1,390|
|Volkswagen Jetta 2.0T 4-Dr Sedan||$1,380|
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Data assumes single male driver age 60, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include multi-vehicle, homeowner, claim-free, multi-policy, and safe-driver. Rates do not factor in zip code location which can change premium rates significantly.
Based on these rates, we can assume that models like the Honda CR-V, Ford Escape, Ford Edge, and Ford F-150 should be the most affordable vehicles to insure for older drivers.
Finding the highest-rated auto insurance provider can be a challenge considering how many companies there are in North Carolina. The company information below may help you choose which providers to look at when shopping your coverage around.
These ratings are only comprised of the largest companies in America, so companies with more of a regional focus are not included in these rankings. To compare price quotes and find the cheapest rates for drivers over age 60, simply click here.
Top 10 Major Auto Insurance Companies in Durham Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Titan Insurance – A+
- Esurance – A+
- Progressive – A+
- Nationwide – A+
- The Hartford – A+
- Allstate – A+
Do you need full coverage?
Saving money on insurance is important to most people, and an easy way to buy cheaper insurance for drivers over age 60 is to only buy liability coverage. The illustration below illustrates the comparison of insurance costs when comparing full coverage to liability only. The premium estimates are based on no accidents, no driving violations, $250 deductibles, drivers are not married, and no discounts are applied to the premium.
On average, full coverage on your policy costs $1,755 per year over and above liability only. At some point, every insured wonders when is it safe to stop buying full coverage. There isn’t a steadfast formula for dropping full coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is 10% or more of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s say your vehicle’s book value is $12,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $11,000 after the deductible is paid. If you are paying more than $1,100 a year to have full coverage, then you might want to think about dropping full coverage.
There are some scenarios where dropping full coverage is not in your best interest. If you still have a lienholder on your title, you have to maintain full coverage in order to keep the loan. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should not remove full coverage.
Impact of careless driving on insurance rates
The recommended way to enjoy the most affordable insurance premiums for older drivers is to be a cautious driver and not receive tickets or have accidents. The illustration below demonstrates how traffic citations and fender-benders impact insurance rates for different ages of insureds. The information is based on a single male driver, full physical damage coverage, $500 deductibles, and no other discounts are factored in.
In the prior example, the average cost of a car insurance policy per year with no accidents and a clean driving record is $1,181. Receive two speeding tickets and the average cost hikes up to $1,557, an increase of $376 each year. Then add in one accident along with the two speeding tickets and the 12-month cost of insurance for drivers over age 60 increases to an average of $1,934. That’s an increase of $754, or $63 per month, just for being a careless driver!