Cheapest Car Insurance For Senior Citizen

Car Insurance for Seniors: Understanding Changes in Premiums

As you get older, you might notice that the cost of your car insurance goes up, even if you’re a great driver. According to information from Progressive that looks at the whole country, auto insurance tends to start getting more expensive for seniors around the age of 75. On the flip side, if you’re in your 50s or 60s, you might actually pay less for insurance than you ever have before.

So, if you’re over 55, there’s a chance you could save some money on your insurance. Some states have rules that give older drivers discounts on their insurance, and it’s worth checking if yours is one of them. Understanding these changes can help you make informed decisions about your auto insurance as you navigate your senior years.

car insurance for senior citizens

How Much Is Car Insurance for Seniors?

Car insurance for seniors usually costs around $2,150 per year, according to our examination of rates for drivers aged 65 to 80.

The expenses for senior car insurance can vary significantly depending on the insurance company. In our research, we discovered a substantial difference of nearly $1,920 per year between the least and most expensive companies.

If you’re on the lookout for budget-friendly options, Nationwide stands out as the most affordable choice for senior drivers, with an average cost of $1,402 per year. Nationwide also ranks high on our list of recommended car insurance companies for drivers of all ages.

As you get older, you might notice a gradual increase in auto insurance rates, starting around age 65. Our analysis indicates an average rate hike of 6% for car insurance between the ages of 65 and 70. These costs continue to rise steadily, reaching a relatively significant overall increase of 31% by the time you reach 80 years old compared to rates at age 65.

Annual Car Insurance Costs for Seniors

AgeAverage Cost Per YearIncrease In Cost Compared To Age 65
65$1,892N/A
70$2,0116%
75$2,22317%
80$2,47431%

Finding the Best Car Insurance Rates for Seniors

We took a closer look at car insurance rates for drivers aged 65 to 80 to figure out which companies offer the best deals.

When it comes to affordable options, Nationwide stands out with the lowest car insurance rates for seniors, charging $1,402 annually or $117 per month. Other budget-friendly choices include USAA, averaging $1,455 per year, and Travelers, with an annual cost of $1,668.

Cheapest Car Insurance Companies For SeniorsAverage Monthly CostAverage Annual Cost
Nationwide$117$1,402
USAA*$121$1,455
Travelers$139$1,668
Geico$149$1,793
Auto-Owners$151$1,813

(*Note: USAA auto insurance is exclusively available to members of the military, veterans, and their families.)

Affordable Car Insurance for Seniors at Different Ages

For 65-year-olds, USAA offers the most budget-friendly car insurance, averaging $1,322 per year or $110 per month. If you don’t qualify for USAA, Nationwide is the next best option, with an average annual cost of $1,342.

Cheapest Car Insurance Companies For 65-Year-OldsAverage Monthly CostAverage Annual Cost
USAA*$110$1,322
Nationwide$112$1,342
Travelers$115$1,379
Erie$125$1,499
Geico$135$1,615

(*Note: USAA auto insurance is exclusively available to members of the military, veterans, and their families.)

Seniors aged 75 can find the most economical car insurance with Nationwide, which offers coverage at an average annual cost of $1,534, equivalent to $128 per month.

Cheapest Car Insurance Companies For 75-Year-OldsAverage Monthly CostsAverage Annual Costs
Nationwide$128$1,534
USAA*$132$1,581
Travelers$137$1,644
Auto-Owners$152$1,819
Erie$154$1,842

(*Note: USAA auto insurance is exclusively available to members of the military, veterans, and their families.)

Finding Affordable Car Insurance for Seniors Based on Driving History

Your driving history plays a crucial role in determining how much you’ll pay for car insurance as a senior driver. If you’ve maintained a clean record without accidents or traffic violations, you’re considered a good driver, resulting in lower auto insurance rates.

However, if you’ve had accidents, speeding tickets, DUIs, or other infractions, be prepared to see an increase in your insurance costs for the next three to five years, depending on the severity of the issue.

Here’s a breakdown of the cheapest car insurance options for senior drivers:

For Good Drivers (No Violations):

  • Nationwide offers the most affordable full coverage auto insurance for seniors aged 70, averaging $1,410 per year.
  • USAA is also cost-effective at $1,416 annually for full coverage, but it’s exclusive to military members, veterans, and their families.
CompanyAverage Annual Cost of Full CoverageAverage Annual Cost of Minimum Coverage
Nationwide$1,410$683
USAA*$1,416$413
Travelers$1,472$695
Erie$1,623$427
Geico$1,718$604

*USAA auto insurance is available only to members of the military, veterans, and their families.

For Seniors with At-Fault Accidents:

  • Erie is the most affordable option for seniors aged 70 with full coverage after causing an at-fault accident with injury, with an average rate of $2,161 per year.
CompanyAverage Monthly CostAverage Annual Cost
Erie$180$2,161
USAA*$188$2,261
State Farm$194$2,331
Nationwide$203$2,431
Travelers$207$2,482

*USAA auto insurance is available only to members of the military, veterans, and their families.

For Seniors with Speeding Tickets:

  • USAA is the most budget-friendly choice for 70-year-old seniors with a speeding ticket, averaging $1,764 annually.
CompanyAverage Monthly CostAverage Annual Cost
USAA*$147$1,764
Erie$153$1,841
Nationwide$161$1,936
Travelers$184$2,212
State Farm$186$2,228

*USAA auto insurance is available only to members of the military, veterans, and their families.

For Seniors with DUIs:

  • Progressive provides the cheapest average car insurance rate for a 70-year-old driver with a DUI on their record, averaging $2,268 annually.
CompanyAverage Monthly CostAverage Annual Cost
Progressive$189$2,268
Erie$218$2,612
State Farm$218$2,618
USAA*$231$2,776
Travelers$236$2,831

*USAA auto insurance is available only to members of the military, veterans, and their families.

State-by-State Comparison:

The cost of car insurance for seniors varies by state, and the cheapest company also differs. Here’s a breakdown of the most affordable options for seniors aged 65 to 80 in various states:

StateCheapest Insurance Company for SeniorsAverage Annual Cost for Full Coverage from the Cheapest Company
AlabamaNationwide$1,098
AlaskaGeico$1,075
ArizonaQBE$1,152
ArkansasTravelers$1,215
CaliforniaCapital Insurance$1,637
ColoradoAmerican National$941
ConnecticutGeico$1,332
DelawareTravelers$1,144
FloridaTravelers$2,014
GeorgiaCountry Financial$1,499
HawaiiGeico$896
IdahoAmerican National$526
IllinoisTravelers$1,097
IndianaHastings Mutual$770
IowaHastings Mutual$645
KansasNationwide$987
KentuckyTravelers$1,261
LouisianaSouthern Farm Bureau$2,092
MaineTravelers$686
MarylandGeico$1,100
MassachusettsState Farm$682
MichiganSecura$1,093
MinnesotaFarm Bureau Mutual$1,081
MississippiDirect General$1,169
MissouriTravelers$1,237
MontanaState Farm$1,310
NebraskaAmerican National$562
NevadaCapital Insurance$953
New HampshireMMG Insurance$836
New JerseyTravelers$1,206
New MexicoGeico$1,436
New YorkProgressive$1,030
North CarolinaState Farm$792
North DakotaAmerican Family$1,073
OhioHastings Mutual$674
OklahomaMercury$1,503
OregonQBE$989
PennsylvaniaTravelers$1,106
Rhode IslandState Farm$1,461
South CarolinaAmerican National$551
South DakotaKemper$1,003
TennesseeTennessee Farmers$1,064
TexasTexas Farm Bureau$840
UtahNationwide$929
VermontProgressive$730
VirginiaAlfa$714
WashingtonCapital Insurance$929
West VirginiaNationwide$969
WisconsinRural Mutual Insurance$761
WyomingAmerican National$691

In some cases, USAA might be the cheapest, but we’ve listed the next most affordable company as USAA is exclusively available to veterans, military members, and their families.

What Influences the Cost of Senior Car Insurance?

When it comes to determining the cost of your car insurance, age is just one piece of the puzzle. Here are some key factors, aside from age, that play a big role in how much you pay for your car insurance:

  • Driving Record: Your driving history matters. If you’ve had accidents or violations like speeding tickets or DUIs, your premiums may go up. On the flip side, if you have a clean driving record, you can enjoy lower rates.
  • Credit Score: In many states, insurance companies consider your credit history when setting your rates. People with lower credit scores often end up paying higher premiums.
  • Location: Insurance rates can differ not only from state to state but also within states. Factors like population density and climate contribute to these variations. For instance, folks in rural areas generally pay less than those in busy urban spots.
  • Gender: Some states allow insurance companies to adjust rates based on the gender indicated on your driver’s license.
  • Deductible: Choosing a higher deductible typically means a lower premium. However, it also means you’ll need to pay more out of pocket when you make a claim.
  • Vehicle Details: The specifics of your vehicle matter too. The make, model, mileage, and value of your car all play a role in determining your insurance rates.
  • Coverage Choices: The type and amount of coverage you choose impact your premiums. As you increase your coverage, your premium also goes up.
  • Discounts: Many insurance companies offer discounts for various situations and types of drivers.

Discounts to Save Money on Car Insurance for Older Drivers

Getting discounts on your car insurance can make it more affordable, especially for seniors. Here are a couple of discounts that can be particularly beneficial:

  • Defensive Driving Discount:
    • Taking a defensive driving course not only qualifies you for a discount but also enhances your driving skills. This can be a great way to prevent accidents and avoid higher insurance rates.
  • Low-Mileage Discount:
    • If you’re driving less because your lifestyle has slowed down, it’s worth asking your insurance company about a low-mileage discount. Additionally, there are auto insurance programs based on pay-per-mile, which could be worth exploring.

Why Do Auto Insurance Rates Increase for Seniors?

Auto insurance rates tend to go up for seniors because insurance companies have noticed that people in this age group are more likely to have accidents and need to make claims.

When we look at how much people pay for car insurance based on their age, teenagers and seniors usually end up paying more compared to other drivers, assuming everything else is equal. It’s important to note that in California, Hawaii, and Massachusetts, state laws don’t allow age to be a factor in setting auto insurance rates.

Around the age of 65, auto insurance rates start to increase for seniors. Although senior drivers have more experience on the road than teenagers, there are some changes that come with age that can make driving a bit more challenging.

Some of the things that can make driving difficult for seniors include changes in vision and cognitive abilities, muscle issues, and overall changes in physical fitness. Taking medication can also be a factor, as it might affect concentration and the ability to drive safely, leading to more insurance claims.

As our bodies age, coordination, flexibility, and strength can decrease, affecting reaction times and making it harder for older drivers to avoid accidents. The Centers for Disease Control and Prevention has found that the risk of being killed or injured in a traffic accident increases as drivers get older.

The Insurance Institute for Highway Safety tells us that fatal crashes become more common between the ages of 70 and 74, peaking in drivers aged 85 and older. This is mainly because older drivers in this age range are more vulnerable to serious injuries, especially chest injuries and other complications. More severe accidents for older drivers result in expensive car insurance claims, leading to higher rates.

Even if you’re 75 years old and an excellent driver with no history of insurance claims, your rates will still be influenced by the claims made by other older drivers.

One way to potentially keep your car insurance rates more reasonable as you age is by staying in good physical and mental shape. Additionally, adjusting your driving habits to remain a safe driver can be helpful in maintaining more affordable car insurance rates.

How can older drivers find affordable car insurance?

Getting the best car insurance rate as a senior doesn’t just depend on discounts. Here are some simple steps you can take:

  • Drive Safely: Being accident-free and avoiding moving violations helps in keeping your insurance rate low. So, always drive responsibly.
  • Usage-Based Programs: Some insurance companies offer programs like Snapshot® from Progressive. These programs use devices in your car to track your driving behavior. If you drive safely, you might qualify for a lower rate.
  • Cut Down on Miles: If your insurance considers the distance you drive, reducing your mileage could help lower your rate. It not only saves you money but also decreases the chances of being in an accident.
  • Check Your Location: If you’re thinking of moving after retirement, keep in mind that insurance rates can vary based on location. Living in areas with higher crime or accident rates might lead to higher premiums.

How to Find Cheapest Car Insurance for Seniors

If you’re 60 or older and in search of car insurance that won’t break the bank, here are some helpful tips to guide you towards the best coverage at the lowest price.

  • Compare Different Policies:
    • It’s a smart move for anyone, regardless of age, to check out different car insurance options. Doing this helps you discover the most affordable coverage tailored to your needs.
    • Whether you shop around when your policy is up for renewal or every few years, comparing at least three quotes is a good practice. Ensure the policies you compare offer the same level of coverage to get accurate price comparisons.
Insurance ProviderAverage Annual Premium
USAALess than $2,000
Auto-OwnersLess than $2,000
GeicoLess than $2,000
WestfieldLess than $2,000

  • Our list of top car insurance options for seniors includes USAA, Auto-Owners, Geico, and Westfield, all offering policies averaging less than $2,000 per year.
  • Explore Senior Discounts:
    • Some companies specifically cater to the senior market, connecting with groups like AARP or AMAC. These organizations often offer exclusive discounts.
    • Utilize online auto insurance marketplaces or work with independent agents to explore a variety of options.
  • Defensive Driving Course:
    • Taking a defensive driving course, even if you’ve been driving for years, can lead to discounts. Check with your current provider to see if they offer discounts for completing an approved course. In some states, this discount is mandated and usually ranges from 5% to 10%.
  • Ask About Additional Discounts:
    • Auto insurers frequently provide discounts for bundling auto coverage with home or renters insurance, choosing paperless billing, paying the full premium upfront, and demonstrating loyalty, safe driving, or having safety features in your vehicle.
  • Consider Usage-Based Insurance:
    • This coverage allows insurers to monitor driving habits, rewarding safe practices with lower rates. Seniors with a good driving record may find this beneficial, especially if they spend less time on the roads.
  • Policy Adjustments:
    • Adjusting your policy can impact rates. Consider:
      • Increasing your deductible (the amount subtracted from a claim check).
      • Decreasing your coverage limits.
      • Dropping unnecessary coverages, like roadside assistance or gap insurance if no longer needed.
  • Choose Your Car Wisely:
    • The type of vehicle you drive affects insurance premiums. Sporty cars generally have higher rates, while reliable vehicles with advanced safety features are more affordable to insure.

FAQs

 Who offers the most affordable car insurance for seniors?

When it comes to finding the cheapest car insurance for seniors aged 65 to 80, Nationwide stands out as the most budget-friendly among the companies we studied. Keep in mind that the best choice for you could depend on your location and individual details like your driving history.

Which car insurance companies are recommended for senior citizens?

Our analysis identified Nationwide, USAA, Erie, and Travelers as the top car insurance companies for seniors. This assessment considered rates for drivers aged 65 to 80, coverage options, customer complaints, and the efficiency of handling collision claims.

Do auto insurance companies provide discounts for senior drivers?

Yes, many leading car insurance companies offer discounts tailored for seniors. In some states, insurers are obligated to provide seniors a discount upon completing a defensive driving course. Additionally, seniors may qualify for discounts through actions like bundling home and auto insurance, opting for paperless billing, paying the full premium upfront, and maintaining a claims-free record.

What are the best discounts for senior drivers?

Seniors can save by participating in usage-based insurance (UBI) programs. Companies like Nationwide offer UBI programs, such as SmartMiles, which bases your rate on miles driven. Keeping your mileage low can lead to flexible monthly rates. Other avenues for discounts include bundling home and auto insurance, paperless billing, and affiliating with certain groups.

Which insurance is recommended for those aged 65 and older?

Our top pick for seniors is Geico, known for providing competitive rates and earning high praise from both customers and industry professionals.

What is the average cost of auto insurance for seniors?

On average, seniors pay around $1,780 annually or $148 per month for a full-coverage car insurance policy. It’s essential to note that these rates may vary based on factors such as location, driving history, and other individual considerations.

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