Car insurance rates increase steadily for drivers after they turn 65. And that is a lot of drivers; The U.S. population that’s 65 and older now stands at 54.1 million, according to data from the U.S. Census Bureau.
But don’t give up hope: Shopping around and asking about discounts can help you find the cheapest car insurance for seniors.
What you need to know about car insurance for seniors
Car insurance costs tend to climb as you advance through your senior years. Although young and inexperienced drivers pay the highest auto insurance costs, seniors also see their premiums rise after age 65.
In fact, it’s possible that your insurer won’t renew your policy once you reach a certain age.
But you should still be able to find a policy with a new insurer if your current company drops you. Even better, there are many ways to save on auto insurance costs once you reach your 60s and beyond.
How much does car insurance for seniors cost?
A recent CarInsurance.com analysis found that Nationwide had the cheapest full coverage car insurance rates for seniors at $1,134 per year, followed by USAA at $1,171 per year and Geico at $1,244 per year. Note that USAA is only available to members of the military community and their families.
| Company | State minimum liability only | 50/100/50 liability only | Full coverage |
|---|---|---|---|
| Nationwide | $501 | $600 | $1,134 |
| USAA | $317 | $396 | $1,171 |
| Geico | $352 | $455 | $1,244 |
| Erie | $342 | $395 | $1,288 |
| State Farm | $418 | $527 | $1,343 |
| American Family | $605 | $667 | $1,345 |
| Auto-Owners | $388 | $488 | $1,363 |
| Travelers | $549 | $665 | $1,464 |
| Progressive | $578 | $717 | $1,683 |
| Allstate | $581 | $697 | $2,011 |
| Farmers | $746 | $953 | $2,133 |
| Mercury | $807 | $1,027 | $2,345 |
| Kemper | $739 | $930 | $2,376 |
How do you get cheap car insurance for seniors?
If you are a senior, the best way to get cheap car insurance is to shop around and compare rates. Each insurer has its criteria for setting rates, and some are likely to offer better deals to seniors and drivers who share your profile than others.
There are also other things you can do to reduce your costs:
Ask about discounts for seniors
Several discounts might be available to you as a senior driver. For example, some insurers may offer discounts to military and government retirees. And sometimes, sticking with the same insurer over several years will earn you a loyalty discount.
You might be eligible for discounts if you bundle your coverage, such as buying car and homeowners insurance from the same company. Remaining accident- and ticket-free also can net you a discount on premiums.
Take a defensive driving course
Completing a defensive-driving course can net you a discount. In fact, some states have laws mandating that seniors must be offered a price break on their premiums after completing this type of course. Organizations such as AARP, AAA and the National Safety Council offer such courses.
Pay less if you drive less
As you age, you might drive less. Seniors are less likely to have long commutes to work, and many older drivers are content to spend more time at home.
If this is true of you, look for an insurance company that offers a price break to those who drive relatively few miles annually. Typically, you qualify if you drive fewer than the average miles yearly, but rules vary by insurer.
Some insurers will give you an even more significant discount if you agree to have your driving behavior monitored using a telematics device.
With these programs, you download an app to your smartphone or install a device in your car. The insurer can measure things like speed, hard braking and whether you are using your smartphone while driving.
“Most companies offer a discount just for signing up, with the possibility of a greater discount for good driving behaviors,” says Robert Passmore, vice president, auto and claims policy for the American Property Casualty Insurance Association.
Car insurance buying guide: Learn how to shop for car insurance for seniors
Do any insurance companies only offer coverage for seniors?
For nearly 40 years, AARP members have been eligible for insurance through the AARP Auto Insurance Program from The Hartford.
Policyholders get rates and rewards that are exclusive to those who belong to AARP. For example, you may qualify for a 10% discount simply for being a member.
Agreeing to have your driving monitored through the TrueLane Program saves you 12% upfront and the possibility of a 25% discount at your next renewal.
The Association of Mature American Citizens offers auto discounts to members through Travelers Insurance.
Cheap car insurance for seniors by state
- Alaska (AK)
- Alabama (AL)
- Arizona (AZ)
- Arkansas (AR)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Idaho (ID)
- Illinois (IL)
- Indiana (IN)
- Iowa (IA)
- Kansas (KS)
- Kentucky (KY)
- Louisiana (LA)
- Maine (ME)
- Maryland (MD)
- Massachusetts (MA)
- Michigan (MI)
- Minnesota (MN)
- Mississippi (MS)
- Missouri (MO)
- Montana (MT)
- Nebraska (NE)
- Nevada (NV)
- New Hampshire (NH)
- New Mexico (NM)
- New York (NY)
- New Jersey (NJ)
- North Carolina (NC)
- North Dakota (ND)
- Ohio (OH)
- Oklahoma (OK)
- Oregon (OR)
- Pennsylvania (PA)
- Rhode Island (RI)
- South Carolina (SC)
- South Dakota (SD)
- Tennessee (TN)
- Texas (TX)
- Utah (UT)
- Vermont (VT)
- Virginia (VA)
- Washington (WA)
- Washington D.C. (DC)
- West Virginia (WV)
- Wisconsin (WI)
- Wyoming (WY)
FAQ: Car insurance for seniors
What are government-mandated auto insurance discounts for seniors?
Dozens of states mandate that drivers receive discounts after qualifying for defensive-driving courses. In many states, these price breaks are available to drivers who are 50 and older.
Check with your state’s insurance department to find out which rules apply in your state.
When do insurance costs start to increase for seniors?
CarInsurance.com data show that you’ll pay the least for car insurance at age 60 – $1,511 per year for full coverage – but then start to climb, jumping to $$1,555 at 65, $1,661 at age 70 and $1,817 at age 75. Auto insurance for seniors over 80 is costly.
Does auto insurance go down when you retire?
Auto insurance rates do not automatically decline when you retire. However, rates tend to be low for early retirees in their 60s. After that, rates tend to rise. But there are several things a driver can do to bring those costs down, such as taking a defensive-driving course or becoming eligible for a low-mileage discount.
Final thoughts: Car insurance for seniors
Health issues – natural bodily and cognitive decline and illness – may gradually erode our driving skills as we age. However, there are many things you can do to lower your costs. The most important of these is to shop around and compare rates until you find the insurer that fits your needs at the best cost.
Resources & Methodology
Sources
U.S. Census Bureau. “National Senior Citizens Day: August 21, 2022.” Accessed January 2024.
AARP. “Auto Insurance Program from The Hartford.” Accessed January 2024.
AARP. “Car Insurance Discounts & Savings Hartford.” Accessed January 2024.
AMAC. “Auto Discounts to Members Through Travelers Insurance.” Accessed January 2024.
NAIC. “State Insurance Department Information.” Accessed January 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull rates for male drivers aged 55-75 with a good driving record and full coverage insurance on a 2021 Honda Accord LX.
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Laura Longero
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