The following is an exported forum post from our discontinued forum. If you would like to reply to this old forum post, please post a comment below.
My father is 65 years old (does this qualify as a senior citizen?) IMO, his car insurance is very expensive.. he pays $600 for 6 months of a 2000 Honda Accord. THe car is in perfect condition yet has 100,000 miles on it. He currently uses Allstate. Are there any other companies that I can use here? I think $600/6months is too expensive. I’m looking to pay around half that.
Do you think he is getting ripped off? I mean, the car is probably only worth around what he pays yearly ($1200).
The cheapest car insurance rates in Atlanta for one driver will not be the same for another driver. Car insurance companies look at dozens of different factors to determine your risk.
Allstate is one of the largest and most competitively-priced car insurance companies in the United States. If Allstate is charging your father $1200 per year for car insurance, then it’s unlikely other car insurance companies in Atlanta will offer a significant discount over that amount.
$1200 per year for a 65-year old driver insuring a 15+ year old vehicle does seem expensive. However, it’s impossible to say until we know more about your father:
- Does your father have a history of at-fault accidents, DUIs, speeding tickets, or other incidents that would cause him to be declared a higher risk driver?
- Does your father have a low credit score that could be causing his high insurance premiums?
- Is there anything else that makes the car uniquely valuable – like a high-end stereo system or third party parts that were added?
- Does your father live in a neighborhood that’s high in crime, vandalism, car theft, or vehicle accidents?
- Did your father buy insurance directly from Allstate or work with a third party broker?
- How long has your father had his driver’s license?
- Has your father ever driven without insurance?
- Does the insurance policy cover more than just liability insurance? Is it a full coverage plan with collision and comprehensive coverage as well?
- Have any other options been added to the policy that would increase the cost of the policy – like coverage limits beyond $2 million or an umbrella policy?
Generally, drivers in their 50s and 60s pay some of the lowest rates for car insurance in the country. A driver in his 50s and 60s often has a long history of insured and safe driving history backed up by decades of driving experience. Drivers in their 50s and 60s also tend to be cautious than younger drivers.
Your father also has the advantage of having an older, less valuable vehicle. A 2,000 Honda Accord with 100,000 miles on it should be worth approximately $858 (trade-in value) in Atlanta, according to Kelley Blue Book – so you were right when you assumed that his annual insurance premiums ($1200) were worth more than his vehicle!
Given all of that information, $1200 per year doesn’t seem too unreasonable for car insurance. However, it’s certainly in your best interest to shop around.
As mentioned above, Allstate is one of the country’s most popular car insurance providers. Their premiums tend to be very competitive with other car insurance companies serving the Atlanta area. It seems unlikely that your father would find significantly cheaper premiums ($600 per year) for car insurance.
Start shopping around! Input your father’s information into a car insurance comparison website like our own site. With some basic demographic information, you may be able to find cheaper insurance premiums than what Allstate was charging. Sometimes, a certain car insurance company charges uniquely high rates for a certain driver.
We also recommend checking to make sure your father has the right car insurance for his needs. On a 15+ year old Honda Accord worth less than $1,000 (trade-in value), there’s really no need to have comprehensive coverage (which protects against vandalism, theft, and storm damage, among other damages) or even collision damage (which covers the cost of repairing your vehicle in the event of a collision). If your father gets into a collision, even a minor fender bender can cost more than $1,000 to repair and the car will certainly be written off. With a car worth just $858, it’s not even worth paying the deductible – not to mention the higher insurance premiums.
There could be something you don’t know about your father – like bad credit score – that’s causing car insurance premiums to be so high in Atlanta. Or, he could genuinely be getting taken advantage of by a shady insurance broker who gave your father the wrong plan.
Ultimately, it’s a good idea to shop around for car insurance at any age. It’s equally as important to buy the right insurance for your unique needs. Sit down with your father and compare car insurance policies online ASAP.
It’s really hard to tell without looking at a number of factors, including – car inspection reports, driving records, credit history, how much he drives, how long he’s had his license, etc.
My recommendation is to start looking around. Get in touch with a number of insurance agents and start comparing prices… that is the only way you will find the best rate. You can start by using the form at the top of this page. Just enter your zip to get started… after filling out the form, you will be contacted by a few auto insurance agents who will offer you rates.
P.S. $600 for 6 months seems reasonable, but yes I think you can do better 😉