The Best Cheap Car Insurance Companies for Seniors
Many drivers will see increasingly lower insurance rates as they get older and get more driving experience. However, as you continue to age — usually starting at age 65 — you may see your car insurance rates increase slightly, as insurance companies consider seniors slightly more risky to insure than middle-age drivers.
MoneyGeek collected thousands of quotes to figure out the cheapest companies for seniors on average, broken down by location and driving history. We have also recommended the best car insurance companies for seniors based on which best serve different types of senior drivers.
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Cheapest Car Insurance Companies for Senior Drivers
MoneyGeek reviewed the car insurance companies that write policies in most of the country to find the cheapest car insurance for seniors. On average, the cheapest companies for a 70-year-old senior are:
- State Farm: $1,145 per year
- GEICO: $1,151 per year
USAA was the cheapest car insurance company overall, but it only offers coverage to active and retired military members and their families.
9 Cheapest Car Insurance Companies for Senior Drivers
The cost of car insurance for seniors depends on several individual factors, including age, credit score, driving history, where you live and the type of car you drive. As you get older, age can make a big difference in the rate quotes you get from car insurance companies. Therefore, comparing car insurance quotes from several companies can help you find the best rates for your circumstances.
We calculated the most affordable rates based on a car insurance policy with 100/300/100 liability insurance and comprehensive and collision coverage for a 70-year-old driver.
Cheapest Car Insurance Companies for Senior Drivers - By State
Insurance is regulated by states, so the cheapest car insurance for seniors might be different in your state than it is at the national level. For the most part, GEICO (cheapest in 20 states) and State Farm (16 states) remain the cheapest options on average. These insurers offer the cheapest insurance in Florida, Georgia and California for example.
But there are many other insurance companies that rank top for affordability in individual states. Erie and Farm Bureau insurance affiliates are the cheapest options in three states each. MetLife is the cheapest car insurance for seniors in Michigan and New Mexico.
USAA is excluded from this analysis because of its eligibility requirements, but if it were included it would be the cheapest in 35 states, so eligible drivers should get a quote.
Rates in this analysis are based on a sample 70-year-old driver with 50/100/50 liability insurance and comprehensive and collision coverage.
Best Car Insurance Companies for Senior Drivers in 2021
Finding cheap car insurance for seniors is not a one-size-fits-all process. Each car insurance company evaluates drivers based on their personalized factors, such as age, location, vehicle type, driving history and credit score. Therefore, it’s important to get customized quotes from several different companies to find the cheapest insurance available.
While State Farm was the most affordable option for most categories in our research, this could vary based on your circumstances, so always get and compare your personalized quotes to find the cheapest senior car insurance.
Best Overall: State Farm
Although State Farm doesn’t offer a senior discount specifically, the company does offer several discounts that can reduce your car insurance premiums.
Car Insurance Rates for Seniors - Average Driver
Best for Senior Drivers With a DUI: State Farm
Unfortunately, having a DUI on your record will adversely affect your car insurance rates for an unspecified period. For customers with a DUI on their driving record, State Farm offers the cheapest senior car insurance rates.
Car Insurance Rates for Seniors With a DUI
Best for Senior Drivers With Tickets: State Farm
Having a recent ticket on your record — or several tickets over the years — can result in an increase in your car insurance costs.
Car Insurance Rates for Seniors With a Ticket on Their Record
Best for Senior Drivers With Accidents: State Farm
According to the Insurance Institute for Highway Safety, Highway Loss Data Institute, drivers age 70 and older have higher crash rates per mile traveled than middle-aged drivers. Only young drivers have a higher crash rate.
Car Insurance Rates for Seniors With an Accident on Their Record
Best for Military Families and Veterans: USAA
Specifically for active and retired military members and their families, USAA continually offers the lowest rates on senior car insurance.
Car Insurance Rates for Seniors With a Military Background
Average Senior Car Insurance Rates by Coverage Type
Senior car insurance coverage ranges from basic liability car insurance coverage, usually required by state law, to full coverage car insurance for damages and expenses for both you and the other driver if you are at fault. Full coverage also protects you for damage to your car not sustained in a car accident and theft. How much coverage you need depends on your circumstances, but full coverage with higher maximum limits could protect your nest egg.
The best car insurance option for you depends on your individual situation and needs, including your vehicle type, income, savings and more. If you’re looking to save money, reducing your coverage or raising your deductible could result in lower car insurance premiums. For a 70-year-old driver, the average cost of minimum liability insurance is $797, while full coverage with 50/100/50 limits costs an average of $1,334, which is an increase of 67.4%.
How to Lower Your Car Insurance Premium After Turning 55
For the most part, drivers in middle-age brackets typically have the lowest car insurance rates, but there are ways to lower your premium after turning 55. While it may be time-consuming to implement some of these steps, the savings could be worth it when you find cheap car insurance for senior citizens.
- Shop around for a new policy. Companies continually change how they evaluate drivers; therefore, when you’re ready to renew your policy, always shop around with at least three companies to get personalized quotes. Switching car insurance companies could help you save.
- Update your driver status. If you haven’t updated your policy in a while, double-check the “listed drivers.” Removing people who no longer drive your vehicle from your policy could reduce your rates.
- Take a defensive driver class. Many car insurance companies offer discounts for drivers who complete a certified defensive driver class. Check with your car insurance company for recommended courses.
- Choose a cheaper car to insure. Car insurance companies evaluate risk based on the type of vehicle you have, so choosing a less risky car — say a four-door sedan rather than a sports car — could result in significant premium savings.
- Increase your deductible. If you have the financial means to pay a higher car insurance deductible if you file a claim, you could reduce the amount of your premium.
- Bundle your insurance coverage. Most car insurance companies offer multi-car and multi-policy discounts if you insure more than two vehicles or purchase both your car and homeowners insurance from the same company.
- Add protective technology. Many car insurance companies offer discounts if your car contains safety features like a car alarm or air bags.
- Apply discounts. Most car insurance companies offer various discounts, ranging from safe driver discounts for good driving history to discounts for automatic premium payments. Many companies also now offer discounts based on your driving habits, monitored using technology installed on your car and your smartphone.
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About the Author
- Insurance Information Institute. "Senior driving safety and insurance tips." Accessed July 28, 2020.
- Insurance Institute for Highway Safety, Highway Loss Data Institute. "Older Drivers." Accessed July 28, 2020.
- State Farm. "Take Control of Your Auto Insurance Discounts From State Farm®." Accessed July 28, 2020.
- USAA. "Take Advantage of Our Savings and Discounts." Accessed July 28, 2020.