The Best Cheap Car Insurance Companies for Seniors

As you get older, you bring a lot of experience and wisdom to everything you do, including driving. Many senior drivers — typically defined as age 55 and older — are more likely to obey speed limits, be more courteous to other drivers and take extra precautions when driving in bad weather. This could garner you some extra discounts on your senior car insurance. However, as you continue to age — usually starting at age 65 — you may see your car insurance rates increase. The rise in cost is a result of more car accidents occurring in this age group due to vision issues, hearing loss or slower reflexes.

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Finding cheap 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.

To get you started, MoneyGeek reviewed several top car insurance companies to find cheap car insurance for seniors. We calculated the most affordable rates based on 100/300/100 comprehensive/collision coverage for a 70-year-old driver. While USAA took the top spot, this car insurance company only offers coverage to active and retired military members and their families.

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.

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State Farm

Although State Farm doesn’t offer a senior discount, the company does offer several discounts that can reduce your car insurance premiums. These include an accident-free discount, a good driving discount and discounts for cars with specific safety features. You also can enroll in State Farm’s Drive Safe & Save program, which monitors your driving and rewards you for good driving habits. For senior drivers who drive less these days, State Farm also offers a premium reduction if you drive less than 7,500 miles per year.

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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. This could be especially valuable if you travel often, as State Farm offers coverage on motorhomes, boats and off-road vehicles. Your State Farm policy may provide coverage on rental cars so you can avoid that costly expense at the rental counter.

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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. For seniors, State Farm offers the most competitive rates for drivers with a ticket. In fact, State Farm's average annual premium is more than $500 lower than MetLife, the most expensive insurer for this category in MoneyGeek's analysis.

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State Farm

On average, State Farm provides the lowest car insurance rates for seniors with an accident on their record. That’s good news as there is an increased risk of accidents for drivers age 65 and older. 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.

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USAA

Specifically for active and retired military members and their families, USAA continually offers the lowest rates on senior car insurance. In particular, the company offers safe driver discounts for those with good driving records for at least five years. You also can receive discounts based on the number of miles you drive each year, which could prove substantial if you no longer drive much.

Senior car insurance coverage ranges from basic liability coverage, usually required by state law, to full coverage 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%.

AVERAGE CAR INSURANCE FOR A SENIOR

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Minimum liability annual cost: $797

Comprehensive/Collision (50/100/50) annual cost: $1,334

Comprehensive/Collision (100/300/100) annual cost: $1,454

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Car insurance companies evaluate drivers based on their likelihood to file a claim based on an accident. As a result, drivers living in areas with more car accidents incur a higher risk status than those with fewer car accidents. This is why car insurance companies ask for your zip code when calculating a car insurance quote.

There is some variation in how each company evaluates that risk, so it’s important to get personalized quotes from at least three companies to find cheap car insurance for seniors. If you are moving, be sure to shop for car insurance based on your new home location as soon as possible to see if you can find cheaper rates.

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.

Compare Auto Insurance Rates

Ensure you are getting the best rate for your car insurance. Compare quotes from the top insurance companies.

COMPARE QUOTES

A graduate of the University of Southern Mississippi, Karon Warren is a successful long-time published journalist who covers finance, insurance, business, health, real estate, lifestyle and travel. Her work appears in numerous online outlets and print publications across the country. She also is a member of the American Society of Journalists and Authors.