The words “economical” and “insurance” really shouldn’t be used in the same sentence, specifically when trying to find the best coverage prices for drivers over age 50. Let’s introduce you to some of the factors that have a considerable impact on auto insurance premiums, and come up with some ideas to reduce the price of your next policy.
Determining which company quotes the lowest-priced auto insurance rates for drivers over age 50 will require more work in order to find the lowest price. Every insurance provider uses a different method for determining prices, so let’s examine the auto insurance companies that tend to have lower prices in Minnesota.
Find Cheaper Car Insurance for Age 50+
|Rank||Company||Cost Per Year|
|3||Farm Bureau Mutual||$805|
|5||West Bend Mutual||$952|
|14||Auto Club Group||$1,393|
|Compare Rates Now Go|
Travelers quotes some of the best car insurance rates in Minneapolis at around $667 a year. This is $754 less than the average price paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and West Bend Mutual also qualify as some of the cheaper Minneapolis, MN auto insurance companies.
As illustrated above, if you currently have coverage with Farm Bureau Mutual and switched to Travelers, you might see savings of about $138. Customers with Western National may save as much as $243 a year, and West Bend Mutual customers might see rate reductions of $285 a year.
Be aware that those policy prices are averages for all drivers and vehicles and and are not calculated with an exact vehicle garaging location for drivers over age 50. So the car insurance company that can offer the best rates for your situation may not even be in the top 24 companies in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own personalized driver profile and vehicle information.
One of the more important considerations that determine the cost of insurance is where you keep your vehicle. Areas with high crime rates or more dense population are more likely to have higher rates, whereas less populated areas have the luxury of cheap car insurance rates.
The next table lists the most expensive areas in Minnesota for drivers over age 50 to purchase a policy in. Minneapolis is ranked #3 with an annual premium of $2,018 for coverage, which is about $168 monthly.
|Rank||City||Premium Per Year|
|6||Saint Louis Park||$1,772|
|Start a Quote Go|
Information shown are comparative as specific location information can raise or lower coverage rates considerably.
The vehicle that needs insurance is one of the biggest factors that determines the availability of the best cheap auto insurance for drivers over age 50. Vehicles with limited top-end speed, good crash test ratings, or low incidents of liability claims will cost quite a bit less to insure than adrenaline junky models. The table below shows car insurance premiums for some of the most economical automobiles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$1,456|
|Ford Escape XLT 2WD||$1,463|
|Honda CR-V EX 2WD||$1,456|
|Ford Explorer XLT 2WD||$1,629|
|Ford Edge Limited 2WD||$1,686|
|Honda Odyssey EX||$1,693|
|Volkswagen Jetta LE 4-Dr Sedan||$1,719|
|Chevrolet Impala LT||$1,726|
|GMC Sierra SLE Crew Cab 2WD||$1,719|
|Toyota Tacoma Double Cab 4WD||$1,724|
|Toyota RAV4 2WD||$1,719|
|Dodge Grand Caravan Hero||$1,727|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$1,749|
|Ford Focus SES 4-Dr Sedan||$1,774|
|Find Cheaper Rates Go|
Table data represents single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, homeowner, and claim-free. Estimates do not factor in your specific Minneapolis, MN location which can alter rates greatly.
Looking at the numbers, we can infer that vehicles like the Hyundai Elantra, Ford Escape, Honda CR-V, and Toyota Prius are likely to be a few of the less-costly vehicles to insure for older drivers.
Does it make sense to buy full coverage?
Finding the cheapest auto insurance should be important to the majority of people, and one of the fastest ways to find cheaper insurance for drivers over age 50 is to not buy full coverage. The illustration below illustrates the difference between auto insurance rates with full coverage compared to only the Minnesota minimum liability coverage. The rates are based on no claims or driving violations, $100 deductibles, marital status is single, and no other discounts are factored in.
If we average the cost for ages 20 through 70, physical damage coverage costs $1,821 per year more than just buying liability insurance. That brings up the question when is it safe to stop buying full coverage. There isn’t a written rule for excluding comp and collision coverage, but there is a general guideline you can use. If the yearly cost of full coverage is 10% or more of the settlement you would receive from your company, the it may be a good time to stop paying for full coverage.
There are some situations where dropping physical damage coverage is not a good plan. If you have an outstanding loan on your vehicle, you have to carry full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should keep full coverage on your policy.
The illustration below highlights how deductible selection can impact insurance costs when searching for cheap insurance for drivers over age 50. Data assumes a married female driver, comprehensive and collision coverage, and no discounts are applied.
A 40-year-old driver could reduce rates by $218 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $330 by changing to a $1,000 deductible. Young drivers, such as the 20-year-old example, could drop their prices $538 or even more by selecting a higher deductible.
When choosing a higher deductible, it is essential to have plenty of discretionary funds to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
How to find economical car insurance for drivers over age 50
Lowering your rates is not difficult, and here are some penny-pinching solutions that can help drivers get cheaper auto insurance.
- Avoid at-fault accidents and claims
- Claim-free policyholders usually earn a discount
- Save money by bundling your home and auto policies
- Increase your policy deductibles
- Improve your credit rating
- Tickets and violations raise rates
- Compare rates once a year for cheaper prices
The last item on the list is certainly valuable, as was affirmed in the prior article. Prices charged by auto insurers can change in a short period of time, so don’t be unwilling to change insurance companies if a cheaper rate is available.
Many drivers prefer to stick with one company, but it’s not a great idea if that dedication is costing thousands of dollars over the life of your policy. Now is a great time to compare prices and find cheaper car insurance for drivers over age 50 in Minneapolis.
If you prefer to get some professional input when shopping for cheaper insurance for older drivers, the insurance agencies below can answer your questions and help you decide which policy fits your needs best.
To locate a Minneapolis car insurance agency nearest to you, click the button following the list.
Abdullahi Ahmed Insurance Agency
1113 E Franklin Ave # 104 – Minneapolis, MN 55404 – (612) 432-9142
Farmers Insurance – Matthew Nye
2104 Stevens Ave #309 – Minneapolis, MN 55404 – (612) 979-2330
Horizon Agency Inc
11000 W 78th St – Minneapolis, MN 55423 – (952) 944-2929