7 Best Seniors’ Car Insurance Companies of 2022

Car insurance for seniors

Car insurance for seniors trends upward as you get older, but there are steps you can take to get the best rates possible.

“Seniors have experience driving, so it is not comparable to teens,” said Janet Ruiz, director of strategic communications at the Insurance Information Institute. “Many companies do have safe driving courses for seniors to alert them to the specific things they may encounter as they age. Some give a discount if you take the safe driving course, which is usually offered online.”

Optional car insurance coverages for seniors

As you age, your car insurance needs may change. Coverages or policy features that made sense for you in years past may no longer be right for your needs and could require adjustments. As you reach your senior years, you may want to consider the following coverage changes:

  • Higher liability limits: You may have more wealth and assets to protect in your senior years than you did when you were younger. Choosing higher liability limits gives you more financial protection if you cause an accident.
  • Car rental reimbursement: Many seniors downsize their cars if all members of the household are retired. If you only have one vehicle, this coverage could be helpful. If you are in an accident and your car is not driveable, this coverage will pay for a rental car up to your policy limits.
  • New car replacement: If you have purchased a new vehicle, you may want to consider adding this option. Each company’s new car replacement coverage works a bit differently, but typically this endorsement will pay to replace your totaled vehicle with a comparable new vehicle, rather than paying you the depreciated value which is what a standard policy would include.
  • Accident forgiveness: Although the specifics will vary by company, this optional coverage typically forgives one at-fault accident every three to five years, which could help keep your premium from increasing if you cause an accident.

Talking to your agent or a representative from your insurance company about your changing car insurance needs could help you identify gaps in your coverage or potential features you should take advantage of.

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Average car insurance rates for seniors

The cost of car insurance for older drivers change

The cost of car insurance for older drivers changes over time, with a slow and steady rise in premium prices as the calendar advances. So, car insurance for seniors over 60 typically will cost less than car insurance for seniors over 70.

Even if you drive very little as you get older, you will still have to pay for enough insurance to meet minimum liability coverage requirements.

Christopher J. Robinette, Professor of Law at Southwestern Law School, explains that “the main purpose of minimum requirements is to financially protect other drivers on the road. The minimum amount needed to do so does not change with the age of the insurance purchaser.”

Coverage costs also are higher if you choose more robust coverage that better protects you.

Following are some examples of how age and coverage levels (from state minimum up to full coverage) impact your auto insurance rates:

AgeState Minimum50/100/50100/300/100
60$536$598$1,507
65$555$622$1,547
70$594$665$1,626
75$674$758$1,808

How much is car insurance for seniors over 70?

The cost of car insurance for older drivers varies over time as they are more likely to be in an accident. As a result, car insurance for people aged 60 and above will be less expensive than that for people aged 70 and up. The state minimum requirement for seniors over 70 is $594, the full coverage limit of 50/100/50 costs $665 and a full coverage of 100/300/100 limit costs $1,626

How Is Auto Insurance Different for Seniors?

Auto insurance coverage works the same for older adults as it does for people of other ages. The only difference may be the cost. Older adults may qualify for discounts based on age or by taking extra measures such as completing a safe driving course or driving less. Other discounts through your insurance coverage—such as accident-free premium reductions—will work the same as they did before you qualified for seniors’ auto insurance discounts. 

Our Favorite Auto Insurance Providers for Seniors

AARP Auto Insurance

Since 1984, AARP has offered auto insurance to its members through a partnership with The Hartford. The Hartford is a well-known, fortune 500 insurance company known for high-quality customer service.

AARP auto insurance provides a variety of coverage options, including 24/7 roadside assistance, a 24/7 claims hotline, lifetime car repair assurance, and 12-month rate protection. This means you get to keep the premium you start with for a full year, as opposed to six months, which is standard for other providers. There is also a new-car replacement option allowing drivers who total a car within the first 15 months – or 15,000 miles – to get a new car.

While AARP auto insurance isn’t the cheapest out there, the company offers bundles for seniors that could lead to significant savings. You can save up to 5% on auto insurance and 20% on condo, renters, or home insurance when you combine the two packages. Some providers allow you to pay your six-month or annual premium in full upfront, and others offer discounts for driving environmentally-friendly cars and having a vehicle with safety features like side airbags.

You Should Know: Older adults can purchase the AARP Advantage Plus policy, which offers first-accident forgiveness. This is nice because it means the first accident you get in won’t impact the premiums. That being said, this policy is more expensive than the basic package.

GEICO

Whenever I hear Geico, which was founded in 1936 and considered one of the best insurance companies in the country, I think of the little, green gecko. While the gecko explains that 15 minutes could save 15 percent on car insurance, there are many other ways older adults can save money with Geico.

For example, adults over 50 are eligible for discounts if they complete a defensive driving course, have a 5-year good driving record, or are retired military or government. Geico also has accident forgiveness, another way to possibly save money in the long run.

Additionally, Geico has a Prime Time contract, specifically for adults 50 and over, that offers automatic renewal. In order to be eligible for this contract, drivers must not have anyone under the age of 25 using their car. They must also have a clean driving record for three years prior to enrolling in the program and must not use their car for commercial reasons.

Geico offers some of the lowest rates for seniors while still providing all the basic coverage needs such as roadside assistance, rental reimbursement, mechanical breakdown insurance, and glass coverage.

USAA

USAA is only available to veterans or veteran spouses and is considered one of the best insurance companies in the United States. The company offers all the basic coverage types, like roadside assistance, towing coverage, and rideshare coverage. One of their most unique offerings is payment flexibility, meaning customers can select individualized payment schedules that best suit them.

There are also a variety of discounts for seniors, like the Senior Bonus, a special discount for veterans who remain USAA members for more than 40 years. There are also discounts for drivers who only drive a few miles per month as well as ones for drivers who own cars less than three years old.

Finally, USAA members can bundle insurance packages together, which can result in savings. Bundles can include car, home, renters, life, and boat insurance.

Allstate

For almost a century, Allstate has offered drivers some of the best insurance policies on the market. And when it comes to drivers over the age of 55, the company offers some of the deepest discounts.

Allstate looks at your driving record and will give discounts based on how well you drive. If you use the company’s app, called Drivewise, you automatically get a 10% discount. This app looks at driving habits and offers additional discounts based on how well you drive. For example, it monitors adherence to speed limits. These savings can be up to 25% for driving safely. Additionally, retired policyholders who are 55 and over receive a senior discount, as do people who have multiple cars or multiple policies.

Finally, the company offers basic coverage like roadside assistance and new-car replacement, as well as many perks that other companies charge extra for, such as accident forgiveness, deductible rewards, and claim satisfaction guarantee.

Why do auto insurance rates for seniors rise?

Car insurance companies base rates on how much risk a driver poses to them. Basically, if statistics show you are in a group that makes you more likely to make a claim, you’ll pay more for auto insurance. Mature drivers have experience on their side, but also have their aging bodies and minds that make one not as spry behind the wheel.

Drivers ages 70 and older have higher crash death rates per mile driven than middle-aged drivers (ages 35-54), according to the Centers for Disease Control and Prevention. Much of that’s due to increased vulnerability to injury in a crash versus, say, being a worse driver. In 2019, the latest statistics available, about 8,000 older adults, 65 years of age and up, were killed in traffic rashes and more than 250,000 were treated in emergency departments for crash injuries.

The CDC notes that age-related physical issues, such as arthritis, reduced flexibility and limited range of motion and decline in vision, plus diminishing cognitive functioning can affect senior drivers’ driving abilities. This is why keeping a stellar driving history will be important so that you can get cheaper car insurance rates. If you drive beyond your current abilities, and get a ticket or in an accident, this will signal to insurers that you pose a higher risk.

Don’t worry though, not all is lost. There are indeed ways to save on senior citizen car insurance.

As you get into your golden years, you’ll start receiving discounts for many things from movie ticket prices to trips to shows. With senior car insurance there are some discounts to find, they may not totally offset the higher base rate you’ll start to see as your age pushes you into a higher risk tier, but every little bit can help.

Expert Advice

Daniel FerraraEmeritus Sales Rep for Liberty Mutual, based out of Katonah, N.Y.

“Car insurance rates tend to rise as driver’s get older because insurance carrier statistics prove that older drivers get into more accidents as their reflexes get slower. Drivers reactions’ time slow as they age,” Ferrara says. “What age do rates go up? That varies from carrier to carrier but generally it is around age 64.”

How Do You Save Money on Car Insurance as an Older Adult?

Older adults can save money on car insurance costs by shopping around. As you get closer to a milestone birthday like 50, 60, or 70, ask your current insurer whether you’ll be eligible for any additional discounts based on retirement, age, driver safety training, mileage, or taking children off your policy as they move out. 

While you’re at it, request quotes from a few other companies on our list of the best car insurance for older adults. Switching to a new insurer could help you save even more money in the long run. Just make sure to consider whether you’d be waving goodbye to a loyalty discount.

What Is Car Insurance for Seniors?

Car insurance for seniors is essentially automobile insurance that offers discounts for senior adults, but may also feature other perks. Generally, senior discounts are offered at age 50 and increase every five years. Seniors with good driving records typically receive the best rates and discounts of all drivers. 

How Senior Citizens Can Save on Car Insurance

Seniors can pay less for their car insurance by being strategic about driving habits. For example, by limiting driving mileage overall, seniors can reduce the likelihood of being involved in a car accident, thereby saving on insurance premiums. Additionally, you can use rideshare, public transportation and grocery delivery solutions to reduce mileage while still being able to run errands, attend appointments and even go out with friends.

In fact, many insurance providers offer discounts for things like reduced mileage, driver safety and rideshare programs. By understanding what discounts may be available to you, seniors can potentially save significantly on insurance premiums.

Discounts for Seniors

  • Claims-free: you may be eligible for a claims-free discount if you have not filed for any insurance claims in the past five – 10 years, depending on the stipulations outlined by your providers.
  • Safe Driving: Drivers that hold a clean record may be eligible for discounts based on driving behavior. Some insurers, such as Allstate and Progressive, even offer a monitoring device that’s placed inside the vehicle to track safe driving and allot discounts for driving performance on an ongoing basis.
  • Multi-policy: Senior drivers looking to bundle auto, home, life, and other insurances may save a great deal of money by doing so. Almost every insurance provider offers a multi-policy discount to help consumers save on coverage needs.
  • Safety Features: Those operating vehicles with unique safety features can often find additional savings just for having such features installed in their car. Consult with your insurance provider to learn how to qualify for this discount.

5 reasons pay-per-mile insurance makes sense for seniors

As a senior, you still want a vehicle to have more access and independence. But if you’re driving less, shouldn’t you  also pay less? That’s why a good choice for car insurance for senior citizens is pay-per-mile insurance. Why pay a flat rate when you can get coverage based on the miles you actually drive? Here are 5 reasons why pay-per-mile coverage is great option for senior citizens. 

1. You’re not ready to give up your keys just yet 

Just because you may not be working or working less, doesn’t mean you want to give up your mode of transportation. And you shouldn’t have to either, as long as you’re safe and healthy. 

​​We believe driving can give seniors a sense of independence. If you have your own car, you don’t have to rely on family or friends to get around; you can continue to take care of yourself instead of depending on others.

More seniors are driving later in life, enjoying their Golden Years. According to 2019 data from the U.S. Department of Transportation’s Federal Highway Administration — which is the most recent available — here is the breakdown of how many senior drivers are on the road by age group: 

  • There are 19,243,268 licensed drivers between the ages of 60 and 64
  • There are 16,241,884 licensed drivers between the ages of 65 and 69  
  • There are 12,763,368 licensed drivers between the ages of 70 and 74
  • There are 8,345,610 licensed drivers between the ages of 75 and 79 
  • There are 4,880,480 licensed drivers between the ages of 80 and 84
  • There are 4,066,741 licensed drivers 85 and older 

That’s approximately 65.5 million senior drivers, aged 60 and up. According to the U.S. Centers for Disease Control and Prevention (CDC), one in five drivers is 65 or older. 

If you fall into this group, you’ll need a car insurance policy that matches your driving habits and lifestyle.

Factors that Affect Senior Auto Insurance Rates

Generally, insurance companies charge older adults higher premiums because of the increased accident rates among the demographic. In the United States, there are more than 250,000 adults ages 65 and older treated in the emergency room daily as a result of car accidents.

While age may be one of the biggest factors insurance companies look at when determining rates, there are many other variables at work, as well as ways to make sure you or your loved one can get insurance. Here’s what to consider:

  • Driving record: Having a clean driving record plays a huge role in whether an older adult will be able to receive auto insurance. Those with records free of driving violations will have an easier time obtaining better insurance rates. Individuals with a handful of violations or accidents are riskier customers for insurance companies and will thus be charged higher rates.
  • Vehicle make and model: The kind of vehicle you own plays into how high the insurance will cost. Some cars are more expensive to repair than others, have a higher theft value, and have higher accident rates, which in turn will impact auto insurance costs. For example, if you drive a BMW, your insurance cost is likely to be higher than if you drive a Subaru Outback.
  • Driving experience: Seniors have a leg up when it comes to driving experience because the longer you’ve been driving the better your insurance rates can be. New drivers of any age will always pay higher premiums, so seniors with decades of experience driving are definitely at an advantage in the driving experience department, provided their record is relatively clean.
  • Annual mileage: The less you drive, the less risk you are at of getting into a car accident, and the less insurance will cost you. It’s important to let insurance companies know if you start clocking in minimal miles so your rates can reflect that change.
  • Claims history: You’ll likely receive a discount on auto insurance if you are claims-free for at least three years. That being said, if you have had a few accidents, either fender benders or more severe ones, it’s likely you will see higher premiums.
  • Gender: While it’s illegal in some states to look at gender when determining insurance coverage, other states take that into consideration. Older men tend to pay more than older women, perhaps because statistics show that men have higher death rates when it comes to crashes.
  • Location: Where you live and park your car also plays a role in how much you pay for insurance. Many older adults live in homes, apartments, or facilities that have garages or designated parking spots, so this probably won’t be a huge concern. However, for those who live in urban areas or places where there are hurricanes or tornadoes, there is a chance your rates will be higher. So, if you’re looking to retire to Florida, keep in mind, your car insurance may go up.

How else can older drivers lower their insurance rate?

Besides senior auto insurance discounts, there are a variety of things you can do to help lower your cost regardless of age, including:

  • Stay accident-free: Drive responsibly to avoid crashes and moving violations, and you’ll be able to keep your rate low.
  • Enroll in usage-based programs: Some insurance companies offer programs, including Snapshot® from Progressive, that measure driver behavior using in-vehicle devices. Typically, if the data shows you’re a safe driver, you could earn a lower rate.
  • Reduce your mileage: If your insurer takes mileage into account, you might be able to lower your rate by driving less, as it would also lower the odds of being in an accident.
  • Consider your location: If you’re planning to move once you hit retirement age, remember that your rate may be higher in ZIP codes with increased crime and accident rates.

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