You have most likely seen the ads from companies like The General, GEICO, and Farmers claiming big savings, so drivers should just choose the one with the most memorable commercial, right?
Unfortunately, it’s not that simple as there are a ton of unknown aspects such as the area you live in, if you want full coverage, whether you are female or male, and if you have a spouse. We will try to teach you about the best ways to avoid paying too much and will give you a good start to your coverage search.
The vehicle model requiring insurance is a significant factor that determines whether or not you can buy cheap car insurance for drivers over age 60. Vehicles with high performance features, poor passenger safety features, or high incidents of liability claims will cost significantly more to insure than more modest models.
The next table estimates coverage prices for some of the cheaper vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$1,388|
|Honda CR-V EX-L 2WD||$1,417|
|Ford Explorer XLT 4WD||$1,555|
|Honda Odyssey EX||$1,611|
|Volkswagen Jetta 2.0T Station Wagon||$1,622|
|Chevrolet Equinox LT AWD||$1,641|
|Jeep Grand Cherokee Laredo 4WD||$1,651|
|Nissan Altima 2.5 4-Dr Sedan||$1,641|
|Toyota RAV4 Limited 4WD||$1,650|
|Chevrolet Malibu LT||$1,671|
|Dodge Grand Caravan Crew||$1,678|
|Toyota Tacoma Double Cab 4WD||$1,671|
|Dodge Ram Quad Cab ST 2WD||$1,673|
|Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr||$1,692|
|Hyundai Elantra Blue 4-Dr Sedan||$1,700|
|Ford Focus SES 4-Dr Sedan||$1,707|
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Table data represents single male driver age 60, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, multi-policy, and claim-free. Rate quotes do not factor in garaging location in Albuquerque, NM which can alter prices greatly.
By looking at the data, you can expect models like the Ford Escape, Honda CR-V, and Toyota Prius are likely to be the cheaper vehicles to insure for older drivers.
Establishing which insurers offer the cheapest insurance rates for drivers over age 60 may require a little more work in order to find the lowest price quote.
Each auto insurer uses their own calculation for determining rates, so let’s take a look at the most competitive insurance companies in New Mexico. It’s important that readers know that Albuquerque, NM insurance rates are impacted by many factors that control your annual premium. Simply having another birthday, buying another vehicle, or having an at-fault accident can cause premium changes that can make some companies much cheaper than others.
Find Cheaper Car Insurance for Age 60+
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,214|
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USAA generally has some of the lowest car insurance rates in Albuquerque at around $657 each year. This is $911 less than the average policy premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are also some of the cheaper Albuquerque, NM insurance companies.
In this example, if you currently have coverage with Farm Bureau Mutual and switched to Allied, you might achieve a yearly savings of in the vicinity of $256. Policyholders with Farmers might save as much as $305 a year, and State Farm policyholders might realize rate reductions of up to $339 a year.
To find out how your current rates compare, click here to start a quote or visit any of the low-priced companies below.
These policy rates are averaged across all drivers and vehicles in New Mexico and are not factoring in a specific vehicle garaging location for drivers over age 60. So the car insurance company that has the cheapest rates for you may not even be in the list above. That illustrates why you need to get car insurance quotes using your own specific driver information and vehicle.
Careless Albuquerque drivers pay higher rates
The common sense way to score affordable insurance rates in New Mexico for older drivers is to be a good driver and have a clean driving record. The example below illustrates how violations and accident claims can impact car insurance costs for different age groups of insureds. The premium estimates are based on a married female driver, comp and collision included, $250 deductibles, and no discounts are taken into consideration.
In the example above, the average cost of car insurance in New Mexico per year with no violations or accidents is $1,736. Receive two speeding tickets and the average cost increases to $2,473, an increase of $737 each year. Then include one accident along with the two speeding tickets and the yearly cost of insurance for drivers over age 60 goes up to an average of $3,224. That’s an increase of $1,487, or $124 per month, just for being a little careless behind the wheel!
The diagram below shows how different deductible levels can change insurance costs when trying to find cheap insurance for drivers over age 60. Data assumes a married male driver, comp and collision included, and no discounts are taken into consideration.
As shown above, a 40-year-old driver could save $224 a year by changing from a $100 deductible up to a $500 deductible, or save $340 by choosing a $1,000 deductible. Even younger drivers, like the 20-year-old category, could reduce their rates $748 each year by choosing larger deductibles on their policy.
If you do raise deductibles, it will be required to have plenty of savings on hand to be able to pay the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.
Rate difference between full and liability-only coverage
Lowering the price of insurance should be important to most drivers, and one of the quickest ways to buy cheap insurance for drivers over age 60 is to not buy comprehensive and collision coverage. The information below illustrates the difference between premium costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The costs are based on no driving violations, no at-fault accidents, $250 deductibles, single marital status, and no discounts are applied.
Averaged for all ages 20 through 70, comp and collision coverage costs an extra $2,262 per year more than buying just liability insurance. Many people question if buying full coverage is worth the money. There is no specific rule to drop physical damage insurance, but there is a guideline you can use. If the annual cost of having full coverage is 10% or more of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
Why you should be shopping around
New Mexico insurance rates are impacted by many things that may substantially change the cost of your policy. Simply improving your credit, increasing deductibles, or having an accident may generate price changes that can make some companies more affordable than before. Not only may things change on your end, but companies amend premium rates every year to ensure their profitability. Higher than normal claims may cause more expensive prices, while better underwriting may result in cheaper Albuquerque car insurance rates.
The bar chart below shows which company has the cheapest car insurance in Albuquerque, NM for a 40-year-old male driver with no accidents, a clean driving record, and good financial standing. If we estimate rates based on his current rating profile, USAA offers the cheapest car insurance rates in Albuquerque at $921 annually. This is $647 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are the remainder of the cheapest Albuquerque, NM auto insurance companies.
Now let’s give the driver from the first set of rates an accident surcharge, poor credit, and a few blemishes on his driving record. Because every insurance company uses a different method to establish rates, comparing prices may now show a substantially altered list of the cheapest companies as shown below.
USAA now has the best price on car insurance in Albuquerque, NM with Allied, The Hartford, Central Mutual, and Safeco now being in the top five. This illustrates why it is important to take the time to shop around when trying to get the most affordable car insurance quotes for drivers over age 60. Insurance rates can be determined by many risk factors and change substantially, so the most economical company a year ago may now be one of the more expensive options.