One of the many factors that are looked at to determine the annual cost of car insurance is where you keep your vehicle. Areas with increased crime or more people are more likely to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates can boast about having cheaper rates.
The next table rates the highest-priced places in California for drivers over age 70 to buy car insurance in. Sacramento comes in at #5 with a yearly cost of $1,652 for the average insured, which is about $138 each month.
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Rate quotes are approximated as the specific area where the vehicle is garaged can affect coverage rates significantly.
Comparing quotes for reasonably-priced auto insurance is not always easy, and determining which companies quote the lowest-priced auto insurance rates for drivers over age 70 will require even more perseverance.
Every insurance provider uses a slightly different approach for determining rates in each state, so first let’s look at the rankings for the auto insurance companies with the most affordable rates in California.
Best Car Insurance Prices for Age 70+
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USAA generally has some of the most affordable car insurance rates in Sacramento at around $1,121 annually. This is $530 less than the average policy premium paid by California drivers of $1,651. Wawanesa, Nationwide, Century National, and CSAA also qualify as some of the cheaper Sacramento, CA insurance companies.
As depicted above, if you are currently insured with Wawanesa and switched to USAA, you could realize annual savings of upwards of $60. Policyholders with Nationwide may save as much as $92 a year, and Century National policyholders might see rate reductions of $105 a year.
Understand that those policy prices are averaged for all insureds and vehicles and do not take into consideration a specific zip code for drivers over age 70. So the car insurance company that can offer you the lowest price may not even be in the list above. That’s why you need to get car insurance quotes using your own specific driver and vehicle information.
Types of discounts on Sacramento insurance rates
Insurance providers that offer quotes for drivers over age 70 may also provide rate discounts that could reduce prices by as much as 35% if you meet specific criteria. The best auto insurance companies and the discounts they provide are detailed below.
- AAA has savings for multi-car, education and occupation, AAA membership discount, anti-theft, good driver, good student, and multi-policy.
- Progressive includes discounts for online quote discount, online signing, good student, multi-vehicle, and homeowner.
- State Farm offers discounts for safe vehicle, Steer Clear safe driver discount, good driver, student away at school, and accident-free.
- Esurance may have discounts that include multi-policy, Switch & Save, Pac-12 alumni, online shopper, DriveSense, claim free, and renters.
- Nationwide policyholders can earn discounts including accident-free, business or organization, multi-policy, easy pay, good student, defensive driving, and family plan.
The example below illustrates the comparison of annual premium costs with and without discounts applied. The data is based on a female driver, no accidents, no driving violations, California state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with claim-free, defensive driving course, homeowner, multiple vehicle, anti-theft, and marriage discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for drivers over age 70 is 28% or $493.
Price comparison of only insuring for liability
Finding cheaper auto insurance should be important to most vehicle owners, and one good way to find cheap insurance for drivers over age 70 is to not buy full coverage. The illustration below shows the difference between insurance premiums with full coverage and liability only. The costs are based on no claims, a clean driving record, $250 deductibles, single marital status, and no additional discounts are factored in.
If we average the cost for ages 20 through 70, physical damage insurance costs $2,314 per year over having just liability coverage. That proposes the question if paying for full coverage is a waste of money. There is no exact formula that is best for determining when to drop full coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
For example, let’s assume your vehicle’s book value is $9,500 and you have $1,000 deductibles. If your vehicle is destroyed, the most your company will settle for is $8,500 after the policy deductible has been paid. If premiums are more than $850 annually for your policy with full coverage, then it might be time to consider dropping full coverage.
There are a few cases where dropping full coverage is not financially feasible. If you still have a lienholder on your title, you must maintain physical damage coverage in order to satisfy the requirements of the loan. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should not opt for liability only.
Last year’s bargain might be this year’s rip off
California auto insurance rates are based on many factors that control the cost of a policy. Simply getting older, buying a new vehicle, or getting into an accident can trigger price changes that can now make some companies cheaper than competitors.
Not only may things change on your end, but auto insurance companies modify pricing every year or even multiple times each year in order to be able to pay unexpected claims. Higher than normal claim frequency or severity may cause additional premium costs, while a profitable period may result in lower-priced Sacramento car insurance rates.
For instance, the data below compares the cheapest car insurance in Sacramento, CA for a 45-year-old male driver with no prior claims, no tickets, and a high credit rating. When comparing rates based on his personal risk profile, USAA quotes the most affordable car insurance rates in Sacramento at $1,405 per year. This is $246 less than the average premium paid by California drivers of $1,651. Wawanesa, Century National, Nationwide, and CSAA are also on the list of the cheapest Sacramento, CA auto insurance companies.
Now we will pretend the driver from above a couple of claims, poor credit, and a speeding ticket. Since every insurance provider has their own unique process to set policy rates, comparing prices could now result in a different ranking of the cheapest Sacramento car insurance companies as shown below.
Grange now has the best price in Sacramento with Allstate, Mercury, GEICO, and Allied also having competitive pricing. This example demonstrates why it is critical to shop around with many companies when trying to get cheap insurance quotes for drivers over age 70.
Insurance prices can be determined by many factors and can change without notice, so the cheapest option two years ago may now be wasting a lot of money.