What cars offer the lowest rates? How can you ask your insurer for a better deal?
If youre 65 or over and still driving, you might want to start socking away some money to cover the rise in insurance rates thats about to hit.
Inflation has significantly impacted the cost of vehicle ownership from the price of new and used cars tomaintenance the average monthly cost of protecting a vehicle has jumped by 22% over the last year, and insurance costs have risen by 40% over two years.
Inflation is a factor, yes, but its not the only contributor. So is the simple math that the number of older drivers is increasing andinsurance companies have had to adjust their risk assessments.
Another factor issupply chain issues. The availability and price of car parts also makerepairs more expensive and the natural downhill effect of that is this increase in repair costs is directly passed on to consumers through higher insurance premiums. The sophistication of modern cars, which often require expensive parts and specialized labor for repairs, further exacerbates this problem.
When fixed incomes and insurance rates collide
For many seniors living on fixed incomes, this situation is a brick wall. Do they drive less and take public transportation more? Do they find a more insurance-friendly car? Or do they ask for higher deductibles?
The simple answer is yes to all of those. Opting for basic liability coverage instead of full collision and comprehensive coverage will always be cheaper.
The fewer miles you drive, the lower your premium is likely to be. Bundling home and auto insurance could make a difference, too. And if youre confident that you can pass a defensive driving course, your insurer might offer you a discount if you complete one of those.
The kind of car you drive has a huge impact on rates. For example, if you have a vehicle with safety bells and whistles like lane departure warning and automatic emergency braking, youre likely to get a break on rates. lane departure warning, etc.) tend to be less risky to insure.
Get a new car?
Sometimes you have to spend money to save money and, in this situation, there are several vehicles associated with lower insurance rates for seniors. Those include:
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Sedans: Toyota Camry, Honda Accord, Subaru Outback
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Crossovers/SUVs: Honda CR-V, Toyota RAV4, Subaru Forester
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Minivans: Honda Odyssey, Toyota Sienna
As we mentioned earlier, repair costs are a factor in insurance rates, but there are some vehicles that offer more cushion in this regard than others. For example, Japanese brands often top the lists of cars with low repair rates, especially Toyota (Prius, Corolla, and Camry), Honda (Civic and Accord), and to a slightly lesser extent, Nissan and Mazda. The Mazda 3 is regarded as having lower than average repair costs.
They may not be the sexiest cars on the road, but because theyre not loaded down with complex technology, they dont develop problems that mechanics have to learn how to deal with and because they're so commonplace, their parts are abundant and generally cheaper.
Before you buy a different vehicle or change insurers
If theres something here that makes you want to make a change in either auto insurance or the kind of vehicle you drive, throw that idea into neutral and do some homework.
If its insurance rates you want to change, you should check the ConsumerAffairs guide on auto insurance. Read the reviews that other consumers have written about those companies, too.
On the other hand, if you think about buying a different vehicle, RepairPal offers a search tool that can break down the reliability of the cars and trucks youre looking at.
Another determining factor should be the recall status of the vehicle. Again, ConsumerAffairs offers a massive database of vehicle recalls. Make sure that any vehicle youre considering either clears those recall notices or has been repaired to meet the recalls requirements.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-04-23 11:17:15
