The cost of your car insurance changes throughout your life to reflect your age and driving experience. Insurance starts off as the most expensive when you’re a teen and drops in the decades that follow. But by the time you reach your sixties and seventies, you may notice that the cost of auto insurance for seniors seems to creep back up. It’s not as pricey as it would be for a teen, but it’s considerably more than when you were in your thirties and forties.
If you’re retired and on a fixed income, higher premiums certainly aren’t ideal. But don’t worry. With a little extra searching, you can find the most affordable car insurance for you.
Not sure where to start?
Fortunately, there are insurers that specialize in senior auto insurance and offer discounts that make insurance more affordable for retirees. Take a closer look at the best senior car insurance providers and how you can save on the cost of auto insurance for seniors.
Best auto insurance for seniors
We compared ratings and average costs to help determine the best car insurance options for seniors.
|Car insurance company||Average annual premium for full coverage for 70-year-olds||2020 J.D. Power Score (customer satisfaction index ranking)|
Quadrant Information Services, 2020
Allstate makes the list of best auto insurance for seniors for the variety of discounts the company offers. Allstate ranks in the top five in the J.D. Power Customer Satisfaction Study too, making it a good option for savings and good service.
You may not be able to do much about your policy getting more expensive as you age, but you could take advantage of discounts to offset the price increase. Some Allstate discounts that can reduce the cost of auto insurance for seniors include:
- Drivewise Program: Download the Drivewise app to track your driving habits for a 10% discount. Follow the advice on driving safer and you’ll receive up to 25% in discounts after six months.
- Senior discount: Drivers over 55 get at least 10% off.
Allstate also offers lots of insurance products you may be able to bundle with your auto insurance, giving you an additional discount.
Geico has some of the lowest car insurance prices on the market. Paying less usually means you’re compromising on service or features. Not Geico — the company is #1 in customer satisfaction in J.D. Power’s 2020 Customer Satisfaction Study.
Seniors will appreciate Geico’s Prime Time Contract, an automatic renewal policy ensuring you have coverage as long as you’re licensed and haven’t had an accident in the last three years. On top of already low prices regardless of your age, you can take advantage of discounts such as:
- Defensive driving course: Seniors who have completed a defensive driving course receive 5 to 10% off their policy, depending on the state.
- Retired military or government employee discount: Receive an additional discount on your car insurance.
- Safe driver discount: You can get 25% off your premiums based on your driving history.
The American Association of Retired Persons (AARP) is 40 million members strong. Members have exclusive access to car insurance for seniors through The Hartford, one of the top insurers in the country with top customer satisfaction ratings from J.D. Power & Associates.
The Hartford’s auto insurance policies may not be the cheapest on our list, but the insurer provides exclusive senior auto insurance benefits. A couple of benefits include RecoverCare, which can help you around the house if you’re injured in an accident. They also offer a guarantee that your insurance won’t be dropped as long as you have a valid driver’s license and pay your premiums on time.
Some of The Hartford’s car insurance discounts that can be leveraged by seniors discounts are:
- Alternative fuel discount: Save money on your policy when you insure an electric or hybrid vehicle.
- Defensive driving course discount: Receive 3% off your premiums for three years if you complete a defensive driving course.
You can also ask your agent at The Hartford about how you can further lower your rate.
USAA focuses on auto insurance for military members and their families. If you’re retired military or a veteran, you have access to some of the best prices on car insurance for seniors. USAA outscores all other insurance companies in the J.D. Power Customer Satisfaction Study but doesn’t receive top placement because it’s only available to the military.
Don’t wait until you’re retired to insure your vehicles with USAA. If you’re insured by USAA for 40 years, the insurer will pay you a Senior Bonus each year that you can apply towards your senior auto insurance premium.
USAA premiums are already priced competitively. Other discounts for seniors are:
- Defensive driving: Pass a defensive driver course to reduce your chance of getting in an accident and receive a discount on your premiums.
- Low mileage: If you no longer need to commute to work, you’ll save on your car insurance.
Cost of auto insurance for seniors
Seniors tend to be the safest drivers, but they’re more likely to suffer injury or death in a crash. The higher risk means higher premiums when compared to someone who is 35 years old. Fortunately, senior car insurance is less expensive than teen auto insurance.
Laura Adams, an insurance expert, explains, “While you might think that seniors pay more for auto insurance, their rates are lower than for teen drivers. That’s because seniors generally have more driving experience, obey speed limits and drive fewer annual miles than younger drivers.”
Specifically, the average annual premium for a 70-year-old driver falls at $564 for minimum coverage, meaning you just carry enough liability insurance to meet your state’s requirements. If you want full coverage, meaning you include things like collision and comprehensive coverage in your policy, you’re looking at an average annual premium of $1,535.
Car insurance discounts for seniors
Most insurers offer discounts to help you save as much as 25% on your senior auto insurance. One of the first discounts you should consider is the one awarded when you take a defensive driving course. You’ll be eligible for a discount for up to three years with most insurers once you pass this course.
According to Adams, “If you’re over age 55, most auto insurers offer a senior or mature driver discount if you complete an online driver’s education course. Getting this education is an easy way to save money and improve your defensive driving skills.”
Other discounts you should ask about include:
- Bundled or multi policy discount: Insure your home or rental and vehicle with the same insurance company to receive a sizable discount. Many insurers offer 5 to 20% off all your policies when you bundle with them.
- Safety equipment discount: Newer model vehicles come with safety equipment such as airbags, anti-lock brakes and anti-collision technology could qualify you for more savings.
- Safe driving history discount: If you have an accident-free history, insurers may provide you with discounts on your premiums.
It never hurts to ask about the discounts you might be eligible for.
Other ways senior drivers can save on car insurance
Other ways to save on your auto insurance include:
- Shop around for senior car insurance every year or two. You may find a cheaper quote elsewhere.
- Update your insurer if you’ve retired and don’t drive as often. You may be eligible for a low-mileage discount.
- Prepay your premiums for the year or six months. If you can’t afford it, sign up for autopay. You may get a discount when your insurer can automatically deduct your premiums from your bank account.
- Evaluate the car you’re driving. You may be able to save on car insurance by downgrading the vehicle model you own or buying a newer model with more safety equipment.
- Encourage younger household members to get their own car insurance. Having a driver under the age of 25 on your policy is expensive.
By going through this process, you may be able to save money on your premiums. Even a small percentage of savings can add up over time.
Frequently asked questions
Do seniors pay more for auto insurance?
There are many factors that contribute to whether a senior pays more for auto insurance. In general, senior car insurance costs start to creep up as one ages. But compared to teenagers, seniors pay less on their car insurance, unless they have a history of accidents and claims.
What is the best car insurance for seniors?
There are several companies that understand older Americans and offer car insurance for seniors. The best auto insurance companies for seniors include The Hartford, USAA, Allstate and Geico. All four companies rank high in customer satisfaction and offer special discounts for seniors.
How does a defensive driver course for seniors work?
If you’re thinking about taking a defensive driver course to save on your senior car insurance, it’s a wise choice. Insurers typically discount your car insurance by up to 10% off for a few years after you complete it. You can take the course online for a cost of $20 to $40 and complete it in several hours. If you’re not sure where to find a defensive driving course, ask your insurer.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 70-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.