Car Insurance for Senior Citizens
Best cheap insurance companies for senior citizens
Best car insurance companies for senior citizens
Based on price, ratings and policy offerings, these car insurance companies are best for seniors:
- Best rates for senior citizens: American Family
- Best large company for seniors: State Farm
- Best car insurance package for seniors: The Hartford/AARP
- Best perks for seniors: Geico
- Best for seniors in the military community: USAA
Best rates for senior citizens: American Family
- Average rate: $97 a month for 65-year-olds
- J.D. Power overall satisfaction score: 828 out of 1,000
- Financial strength: Rated A by A.M. Best
American Family checks the boxes when it comes to price, customer service ratings and policy offerings. It also offers pay-per-mile car insurance, which can greatly reduce your rates if you only drive occasionally. Unfortunately, American Family is only available in 19 states.
Best large company for seniors: State Farm
- Average rate: $115 a month for 65-year-olds
- J.D. Power overall satisfaction score: 833 out of 1,000
- Financial strength: Rated A++ by A.M. Best
State Farm’s combination of low rates with quality customer service has helped make it the nation’s largest auto insurer. Bundling auto insurance with a home or renters policy gets you a better deal on State Farm’s already low rates. Seniors can score another discount by completing an approved defensive driving class.
Best car insurance package for seniors: The Hartford/AARP
- Average rate: $153 a month for 65-year-olds
- J.D. Power overall satisfaction score: 829 out of 1,000
- Financial strength: Rated A+ by A.M. Best
The discounts The Hartford offers to AARP members brings its rates down to a competitive level. The AARP Auto Insurance Program from The Hartford offers a package of useful add-ons, including accident forgiveness and roadside assistance, plus a convenient online shopping platform.
Best perks for seniors: Geico
- Average rate: $157 a month for 65-year-olds
- J.D. Power overall satisfaction score: 818 out of 1,000
- Financial strength: Rated A++ by A.M. Best
Geico’s Prime Time contract, available in about 30 states, ensures you’ll be able to renew your policy for as long as you need. Other companies are not always as accommodating, particularly if you have multiple claims within a few years of each other. Geico also offers discounts to seniors who complete a defensive driving class and retirees from the federal government or military.
Best for seniors in the military community: USAA
- Average rate: $101 a month for 65-year-olds
- J.D. Power overall satisfaction rating: 876
- Financial strength: Rated A++ by A.M. Best
- Only available to current and former members of the military and their families
USAA has the highest rating among all auto insurers for overall customer satisfaction from J.D. Power. Along with competitive rates on standard car insurance, USAA also offers pay-as-you-drive insurance in 15 states. This latter program lets you save more if you only drive now and then.
Cheapest car insurance companies for senior citizens
American Family, Auto-Owners and State Farm have the cheapest car insurance rates for senior citizens.
Cheapest car insurance for 65-year-olds
American Family has the cheapest car insurance for 65-year-olds. Its rate of $97 a month for full coverage makes it a slightly cheaper option than USAA, $101 a month, and Auto-Owners, $104 a month.
| Company | Monthly rate |
|---|---|
| American Family | $97 |
| USAA* | $101 |
| Auto-Owners | $104 |
| State Farm | $115 |
| Westfield | $117 |
| Erie | $140 |
| Progressive | $141 |
| The Hartford | $153 |
Full-coverage rates are for a 65-year-old male with good credit and a clean driving record. Your rates may vary. *Only available to the military community.
Cheapest auto insurance for 75-year-olds
American Family and Auto-Owners have the cheapest auto insurance for 75-year-olds. American Family charges 75-year-olds an average of $108 a month for full coverage, while Auto-Owners’ rates average $117 per month.
| Company | Monthly rate |
|---|---|
| American Family | $108 |
| Auto-Owners | $117 |
| USAA* | $123 |
| State Farm | $131 |
| Westfield | $139 |
| The Hartford | $161 |
| Erie | $173 |
| Progressive | $190 |
Full-coverage rates are for a 75-year-old male with good credit and a clean driving record. Your rates may vary. *Only available to the military community.
Cheapest car insurance for 85-year-olds
American Family also has the cheapest car insurance for 85-year-olds, charging $129 a month for full coverage. The next-best rates are from State Farm, $156 a month, and Auto-Owners, $159 a month.
| Company | Monthly rate |
|---|---|
| American Family | $129 |
| State Farm | $156 |
| Auto-Owners | $159 |
| USAA* | $171 |
| Westfield | $171 |
| The Hartford | $200 |
| CSAA | $200 |
| Progressive | $209 |
Full-coverage rates are for an 85-year-old male with good credit and a clean driving record. Your rates may vary. *Only available to the military community.
Average cost of car insurance for seniors
The average cost of car insurance for senior citizens increases from $148 a month at age 65 to $218 a month for 85-year-olds. That’s a 48% increase over 20 years.
Senior citizens have slightly higher crash risks than middle-aged drivers. This is the main reason why your car insurance rates may start inching up in your late 60s.
On average, a 65-year-old pays 10% less for auto insurance than a 30-year-old. However, 75-year-olds pay 9% more than 30-year-olds and 21% more than 65-year-olds.
| Driver age | Monthly rate |
|---|---|
| 30 | $164 |
| 65 | $148 |
| 75 | $179 |
| 85 | $218 |
Rates are for male drivers with a clean driving record and good credit. Your rates may vary.
Best car insurance discounts for senior citizens
Since your car insurance rates are likely to rise in your senior years, it’s important to take advantage of any discounts that may save you money.
Defensive driving courses
Many car insurance companies offer a discount to seniors who complete an approved defensive driving course.
The courses typically run between a half-day and full day, and some are available online. Just make sure your insurance company approves of the class you want to take before you enroll.
Safe driver programs
Most large car insurance companies offer a generous discount to drivers of any age just for signing up for their app-based safe driver programs.
Once the app is on your phone, it automatically monitors and rates your driving, whether you open the app or not. Avoiding unsafe behaviors like speeding, hard-braking and distracted driving qualifies you for more discounts when you renew.
Bundling multiple policies
Most car insurance companies offer a sizeable multipolicy discount for bundling, or buying more than one policy from them. If you don’t already bundle your car insurance with a home or renters policy, it’s a great time to start.
Other money-saving car insurance tips for seniors
Seniors can save on car insurance by shopping around for the best deal and, when appropriate, switching to mileage-based insurance and/or dropping full coverage.
Why shop around for car insurance?
Your age is one of several factors insurance companies evaluate to determine your auto insurance rate. The others include:
- Your driving record and insurance history
- Your credit history, except in states that ban the practice
- Your vehicle
- Any discounts you may be eligible to receive
Since car insurance companies weigh these factors differently, you may qualify for a much lower rate with one than you do with others. Comparing quotes from multiple companies every few years is a good way to make sure you’re not overpaying for car insurance.
How does mileage-based car insurance work?
With mileage-based insurance, your car insurance rate is based on the number of miles you drive during a policy period. The less you drive, the less you pay for insurance.
These pay-per-mile plans are often best for those who only drive a few thousand miles a year, including those who work from home and retirees.
Allstate, American Family, Nationwide and USAA are among the large companies that offer mileage-based car insurance. Metromile offers pay-per-mile auto insurance in eight states.
How much can I save by dropping full coverage?
Dropping full coverage reduces the average price of car insurance for a 65-year-old from $148 a month to $74 a month, a 50% savings.
All you have to do to drop full coverage is remove the collision and comprehensive (comp) coverages from your policy.
Collision and comp combine to cover your car for theft or damage from most causes, up to your car’s market value. Neither is required by law, but both typically are required for a car loan or lease.
If the value of your car, after depreciation, has dwindled down to a few thousand dollars or less, the potential benefits of full coverage may no longer be worth the price.
Frequently asked questions
American Family has the cheapest car insurance for seniors. Its full-coverage rates average $97 a month for 65-year-olds, but it is only available in 19 states. State Farm is the cheapest among more widely available large companies.
No. You are likely to see your insurance rates increase after you turn 65. On average, 75-year-olds pay 21% more for car insurance than 65-year-olds.
The Hartford offers a discount on car insurance to AARP members who meet its qualification guidelines.
Allstate, American Family, Nationwide and USAA have the best car insurance for seniors who don’t drive much. All four offer pay-per-mile insurance, which can save you money if you only drive occasionally. Metromile also offers pay-per-mile insurance, but it’s only available in eight states.