"Experienced drivers should be rewarded for their years of careful driving."
Auto insurance companies that target the lucrative seniors market for car insurance premiums often use this mantra in television commercials as well as in slogans for Internet and hard copy ads.
On the other hand, the media often reports tragic accidents in which elderly drivers fall asleep behind the wheel or fail to react fast enough to avoid serious injuries or deaths.
Add this to a well-publicized problem with the accelerator pedal sticking in 2009 to 2010 Corollas and other recalled Toyota models. One might argue that a potential perfect storm is brewing for seniors who may be driving unpredictable vehicles that require superlative reaction and recovery times.
Testing Cheaper Rates for Car Insurance
This article reports on a random test that measures car insurance rates for a 26-year-old male driver against the average premiums that older men pay. All premium quotes were for the 2009 Toyota Corolla 4-door model. And while the number of years of driving experience differs by driver ages, all drivers in this sample study had impeccable driving records.
The driver requesting the sample auto insurance quotes resides in Toronto, capital of the province of Ontario and the largest city in Canada. The lowest car insurance quote from the independent rate comparison website InsuranceHotline.com was used for all requestor ages shown below.
Age Comparison for Toyota Corolla Auto Insurance Premiums
Below are sample annual car insurance premiums for male drivers of a 2009 Toyota Corolla. Rates are listed by a driver’s attained age. The average driver premium at age 26 is used as a percentage benchmark for older driver rates.
- Age 26 … C$2,132 annual premium
- Age 34 … $1,896 (11.1% less than the age 26 premium)
- Age 44 … $1,922 (9.8% less than the age 26 premium)
- Age 54 … $1,738 (18.5% less than the age 26 premium)
- Age 64 … $1,595 (25.2% less than the age 26 premium)
- Age 74 … $1,561 (26.8% less than the age 26 premium)
- Age 84 … $1,823 (14.5% less than the age 26 premium).
Given a clean driving record, experienced drivers do seem to enjoy lower-cost auto insurance rates. The maximum savings is for a 74 year old with a stellar driving record. That senior driver qualified for an annual savings of almost $600 when compared with the 26-year-old applicant’s yearly premium.
Even an 84-year-old senior was eligible for a rate that was a $309 discount from the younger male driver’s auto insurance quote.
Sample Driver Insurance Assumptions
To focus on age differences, a clean driving record was entered into the online car insurance quote calculator. None of the sample drivers ever had any accidents and not even 1 parking ticket. An impeccable driving history was applied regardless if the sample quote involved a senior driver with 68 years of on-road experience or a relatively young driver.
Sample Toyota Vehicle Specifications
This quote calculator asked whether the vehicle to be insured was used for business. The reply entered was that the Toyota Corolla was driven a total of 10,000 kilometers (6,214 miles) each year. Half of that driving was for business, while the remaining half was for non-work activities.
Sample Car Insurance Policy Specifications
The amount of car insurance coverage was C$1-million for all ages in the test quotes. A $500 deductible for collision coverage whether the insured driver is at fault or partially at fault. Another $500 deductible applies for comprehensive coverage if the Toyota vehicle is vandalized or stolen.
Results from Sample Toyota Insurance Quotes
Experienced male drivers with clean driving records continue to enjoy lower car insurance quotes from 11.1% to 26.8% less than younger drivers. The sample test quotes showed cheaper rates for senior drivers with unblemished driving histories.
And despite headlines that warn of potential pedal-acceleration problems with the Toyota Corolla and a massive vehicle recall, this kerfuffle has not driven up car insurance premiums for senior drivers of the Corolla.
Like all drivers, seniors still need to search out a number of independent auto insurance quotes to find the lowest-costing premium that their experience deserves.
Sources: This analysis provides independent calculations and insights based on source data from InsuranceHotline.com, a leading third-party website dedicated to consumer education.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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