A complete guide to car insurance for seniors

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Your age can influence the cost of your car insurance premiums. The cost of car insurance for seniors can be costly. In fact, auto insurance for seniors slowly gets more expensive after you pass 65 years of age. 

Fortunately, there are ways to get affordable rates. If you’re a senior, shopping around and comparing policies can get you the lowest auto insurance rates. If you are a military member or a veteran, USAA is the best company for auto insurance. For those who are not military members, here is a list of five other best companies offering car insurance for seniors: 

• Progressive 
• Farmers 
• Geico  
• Erie 
• State Farm  

For example, the average annual cost of car insurance for a 70-year-old driver is $1,626. However, if you want to know who has the cheapest car insurance for seniors? The answer is Progressive and USAA, they offer auto insurance at $724 and $903, respectively.  

This page will review ways to get low-cost senior car insurance, how age and other factors affect costs, and the best auto insurance for seniors. 

Five best car insurance companies for seniors

Finding the right senior car insurance company depends on many factors. The wrong insurer for one driver might be the perfect insurer for another.

Seniors have their own needs when shopping for auto insurance. Insure.com rates the following five companies as having the best car insurance for seniors:

Editor’s note: Due to their limited membership to military members only, we did not include USAA in the top five car insurance companies for seniors ranking. However, they would have been one of the top scorers otherwise.

Progressive

Progressive offers seniors the best deal on premiums, at an average annual cost of $724. It also has a strong National Association of Insurance Commissioners Complaint Ratio, at just 0.67.

However, Progressive’s J.D. Powers Claims Satisfaction Rating is the lowest of the top five in our survey, at 856 (out of 1,000).

Progressive does not offer any specific seniors car insurance discounts. However, careful driving can save you money, regardless of age. Progressives Snapshot program determines your rate based on your actual driving behaviors. The company says drivers who join Snapshot and agree to let Progressive monitor their driving behavior save an average of $145.

Farmers

Farmers is another good choice for seniors car insurance, according to our Insure.com analysis. Its annual average premium of $1,165 is second-best among the companies that made our top five. Farmers’ J.D. Powers Claims Satisfaction Rating of 872 (out of 1,000) actually tops that of Progressive, the most affordable insurer on our list.

However, Farmers’ National Association of Insurance Commissioners Complaint Ratio of 0.74 – while still strong – ranks third on our list.

Farmers also offer a Senior Defensive Driver Discount. To qualify, you must be 65 (or 55 in some states) and complete a driver’s education course that your state’s department of motor vehicles approves. Upon finishing the course, you must provide an approved agency’s certificate of completion to Farmers.

Geico

Both Geico’s annual premium ($1,175) and J.D. Powers Claims Satisfaction Rating (872 out of 1,000) land it squarely in the middle of our top five senior car insurance insurers.

However, Geico lags in its National Association of Insurance Commissioners Complaint Ratio ranking. At 2.04, it ends up in fifth place among our five insurers.

Senior car insurance discounts at Geico include the Prime Time contract, which offers automatic renewal to customers 50 and older. This gives peace of mind to aging drivers who worry that their insurers will abandon them as they age.

You have to meet specific criteria to qualify, and the program is not available in all states.

Discounts also are available for retired federal workers and retired members of the military.

Erie

Erie’s annual premium of $1,185 ranks fourth on our list. Even better, the insurer’s J.D. Powers Claims Satisfaction Rating of 880 (out of 1,000) is second among our companies, just below State Farm.

The insurer’s National Association of Insurance Commissioners Complaint Ratio of 1.1 is not as strong, putting it ahead of only fifth-place Geico.

Erie policyholders earn an automatic discount when they turn 55. Price breaks also are available to older drivers who don’t have any claims against their policies and complete an accredited driver training course.

Finally, drivers in some states who are 55 and join Erie for the first time qualify for a discount if they have successfully completed an approved training course within the past three years.

State Farm

State Farm has the best J.D. Powers Claims Satisfaction Rating — 872 (out of 1,000) — among our top five insurance companies for seniors. It also has the top National Association of Insurance Commissioners Complaint Ratio, at 0.66.

But State Farm’s annual premium cost of $1,369 ranks last among our five insurers. State Farm also does not offer senior-specific discounts.

Best overall: State Farm

When it comes to car insurance, cost is not everything. State Farm is Insure.com’s best auto insurance company for seniors, even though State Farm’s annual premium cost of $1,369 is the highest among our five companies.

So, what makes State Farm best? It gets top marks for claims satisfaction and for garnering relatively few customer complaints.

Best for rates: Progressive

If price is your “bottom line,” Progressive is the right company for you. Its annual average premium of $724 is far below the national average of $1,626 and is best among the companies in our top five insurers.

Best for claims: State Farm

State Farm is our winner again. It has the best claims ranking among our five companies, just edging out second-place finisher Erie.

Cheapest car insurance for seniors

Focusing purely on price – and ignoring everything else – can be a mistake when shopping for car insurance. But price is important, and it is the single most significant factor in determining where they buy a policy for many drivers.

We did some of the work for you, running rates to share the national annual averages based on a policy with 100/300/100 liability coverages (bodily injury per person/per accident and property damage) as well as comprehensive and collision with a $500 deductible.

Here is a list of the cheapest car insurance companies for seniors, by age:

About half of the top 10 cheapest companies for seniors are smaller insurers. The cheapest company on our list is Concord, a regional insurer available in New England states. It has a relationship with Auto-Owners, which is better known and available in more states. Depositors is a subsidiary of Nationwide.

“There is nothing wrong with choosing a smaller auto company for your coverage. If you haven’t heard of them before, take time to check out reviews on their customer and claims service as well as their financial strength rating,” says Penny Gusner, senior consumer analyst for Insure.com. “If having a website or app is important, make certain to look at those as well.”

You don’t have to be an expert to find out information about a company, no matter how big or small it is. Start with your state’s department of insurance website to check that the company is legit and also find out if any complaints have been made against it.

Average car insurance rates for seniors

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:

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Car insurance rates for seniors by age and state

In addition to age, where you live can significantly impact the price you pay for auto insurance.

For a 70-year-old driver, the most expensive and least expensive states for auto insurance are Michigan at $3,468 and Maine at $940, respectively.

Ten most expensive states for auto insurance if you are 70 years old

Ten least expensive states for auto insurance if you are 70 years old

If your state didn’t make the top ten least or most expensive lists, find your state in the table or map below based on average annual rages for full coverage  (100/300/100 liability along with comp and collision).

How much is car insurance for seniors over 60? 

The appropriate auto insurance plan for you is determined by a variety of factors, including your car type, salary, savings, and more. When it comes to car insurance for seniors, the state minimum requirement for seniors over 60 is $536, while the full coverage with 50/100/50 limit costs an average of $598 and a full coverage with 100/300/100 limit costs $1,507.  

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. 

Best cars to save on car insurance rates for seniors

Something as simple – and often overlooked – as purchasing the correct vehicle type can get you the best auto insurance rates for seniors. Some cars are more expensive to insure than others.

Following are the ten best cars for those hoping to get cheap car insurance for seniors:

1. Chrysler Voyager
2. Honda CR-V LX
3. Mazda CX-3 Sport
4. Fiat 500X Trekking
5. Honda HR-V LX
6. Jeep Compass Sport
7. Mazda CX-5 Sport
8. Subaru Outback 2.5l
9. Subaru Forester 2.5l
10. Jeep Wrangler JL Sport

Is car insurance for seniors worth the cost?  

Yes, car insurance for seniors is worth the cost. It is known to all that in your 60s and 70s the car insurance rates are likely to start climbing uphill because they are more accident-prone than those in their middle age. Older drivers’ problems, including age-related hearing or vision loss, slower reflexes, and health issues and medicines, contribute to the increased insurance costs.  

Furthermore, regardless of the degree of the accident, older drivers have suffered greater injuries and perished at a higher rate than younger individuals. This implies that seniors are more costly to treat following an accident. These elements can raise insurance claims expenses. Since the insurance coverage provides you with all the protection you need, it is worth the cost.  

However, as a senior, you have certain advantages that you did not have when you were younger. As an elder, you can save on your insurance premiums by getting credit for driving less, raise your deductible, drop the coverage you no longer need, bundle your insurance policies and shop around for better rates from various insurers.  

Factors that affect senior auto insurance rates

While age may be the rating factor at the forefront of most seniors, many different factors can impact the cost of car insurance for senior citizens. Rules can vary by state. But typically, factors that influence rates can be divided into two categories:

Driving and car-related factors

Driving Record: Your driving record is important to car insurance companies. The more traffic offenses you’ve committed, the greater a risk you are to an insurer, and the more you’ll pay for auto insurance. By contrast, a good driving record will help you get better rates.

Driving Experience: A novice driver of any age will pay more than a veteran driver. Seniors who have been driving for decades should reap the rewards of that experience in the form of lower rates initially, but rates can climb as they age.

Vehicle Type and Use: The type of vehicle you purchase will impact how much you pay to insure it. Your vehicle’s value and the model’s popularity among thieves also will impact the cost to insure. So will the cost to repair your vehicle and any safety features it has or lacks. Also, a car used for personal use will cost less to insure than for commercial purposes.

Annual Mileage: If you drive less, you pay less for car insurance, as being on the road less frequently poses a reduced risk to your insurer. If you recently started driving less – such as after retiring from work — tell your insurer, as your premiums might fall.

Coverage and Deductible: If you have higher coverage limits, your rates typically cost more. Despite this fact, we still recommend 100/300/100 liability coverage. Reducing these limits won’t save you a tremendous amount in premium costs, and having higher coverage limits gives you more protection. If you want to save money, raise your deductible instead. Your deductible is what you pay out of pocket before your insurance policy kicks in.

Insurance History: It’s important to stay on top of your bills and not have a car insurance coverage gap. Drivers with continuous coverage get better rates.

Claims History: If you’ve been claims-free for at least three years, you’ll typically receive a discount. But if you have had a few fender-benders in the last several years, you’ll be seen as a bigger risk on the road and end up with higher premiums.

Non-driving car insurance factors

Age: Teens and older drivers are the highest-risk categories, but for different reasons. Teens are inexperienced novice drivers. On the other hand, seniors — who are mature and experienced — have reflexes on the decline. California, Hawaii and Massachusetts don’t allow auto insurers to rate on age.

Gender: Women typically have fewer accidents — and fewer serious wrecks — than men. They also have fewer driving-under-the-influence accidents. So, they tend to pay lower rates, especially during their teen and twilight years.

Location: Where you and your car reside matters. There are different risks depending on whether you live in an urban or rural area or if your ZIP code is prone to severe weather such as hurricanes, tornadoes or frequent hail storms. If you’re looking to retire and plan on moving, check out our cost of living tool to see if car insurance rates for seniors are better or worse in the cities you’re considering.

Marital status: Married folks tend to pay less for car insurance, as they are deemed less risky than single drivers. Losing your spouse can thus affect your rate as you move from married to single status. Hawaii, Massachusetts, Michigan and Montana don’t allow marital status as a rating factor. And, other states, like Pennsylvania, have rules in place to keep a “widow’s penalty” from occurring.

Credit history: Most states allow insurers to charge higher auto insurance rates if your credit isn’t stellar. The reason is insurers have shown that those with low credit scores tend to make more claims – and thus come across as a higher risk.

How to save with car insurance discounts for seniors?

Although seniors face higher insurance rates as they age, there are ways to reduce your auto insurance costs. Although these are not specific discounts for seniors, any senior may qualify for these insurance discounts:

• Drive carefully: You can get a decent discount if you maintain a clean driving record, as you pose a lower risk to insurers.
• Drive less: Some insurers offer low-mileage discounts if you drive less than the average number of miles annually. If you aren’t on the road as much, your risk of an accident is likely lower.
• Bundle your coverages: You may get a discount for insuring both your house and car with the same insurance company.
• Raise your deductible: If you drive less, it also may be a good idea to increase your deductible. A deductible is an amount you pay out-of-pocket before your insurance kicks in to cover your claims. According to the Insurance Information Institute, raising your deductible to $1,000 could help you save 40% on insurance premium costs.
• Decrease or drop coverages that aren’t needed: Double-check your policy to make sure all the coverages and limits are accurate for your needs. If you own an older car, it may be time to drop collision and comprehensive coverage, for example.
• Take a course: You can take a defensive driving course through your local senior center or AARP. Doing so can often get you a defensive driving course discount.
• Drive a safer car: Buying a car with safety technology — such as rearview cameras and collision alarm systems – can result in both lower car insurance costs and fewer accidents and claims.
• Agree to have your driving monitored: Many car insurance companies offer discounts if you agree to install a monitoring device on your cars so your driving behavior can be tracked. If you exhibit safe driving behavior, your premiums can be cut drastically.Professor Robinette suggests, “Seniors who want their specific driving habits to be accurately reflected in their premiums can move to usage-based insurance. On average, drivers save approximately 10-15% with usage-based insurance.

Chris Kissell

Contributing Researcher

 

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Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.