The Best Cheap Car Insurance Companies for Seniors in 2022

The best car insurance for seniors blends affordability, customer service and financial stability. While rates typically decrease once you hit age 25, they begin to increase once you turn 65 — as insurance companies consider seniors slightly riskier to insure than middle-aged drivers.

MoneyGeek analyzed thousands of quotes to discover the cheapest and best car insurance rates for seniors on average nationally, by state, and by driving record. Our analysis showed that seniors can save hundreds of dollars per year by shopping around and comparing providers.

Our analysis showed that the best car insurance for seniors is State Farm. We found that State Farm not only offered the most affordable rates on average but they also scored well with their customer satisfaction ratings — earning four out of five stars for the estimation process, repair process, claims servicing and settlement.

Finding the best car insurance rates for seniors is not a one-size-fits-all process. Each car insurance company evaluates drivers based on their personalized factors — your 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 car insurance available.

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.
• Pay in Full. While monthly payments have a lower upfront cost many insurance providers offer discounts that range from 5-10% for paying for a policy in full.