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.

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.

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.

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%.

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.