Best Car Insurance for Seniors: Buyers Guide (2024)

For seniors looking to save, finding the best car insurance at the lowest price is crucial. Driving habits and needs of drivers change over time, and seniors need insurance programs that can adjust to their changing needs. 

This buyer’s guide is here to help seniors determine what to look for in an insurance company and get the best possible coverage, rate, and customer experience for their journey ahead. 

Key takeaways

• The top five insurers for seniors focus on discounts, usage-based premium savings, and customer service. 
• Car insurance savings for seniors can vary by insurer, state, and personal insurance characteristics. 
• Customer service ratings are an important consideration for seniors when comparing insurance companies.
• The best insurance company for seniors can adapt and grow with seniors as their needs change. 
• One size does not fit all when comparing auto insurance for seniors. 

Top 5 Auto Insurance Providers for Seniors

Seniors have unique auto insurance needs, and finding the right insurance company for their changing needs is crucial. For the best rates, most comprehensive discounts, and ease of use, the following companies represent the top five insurance carriers for seniors looking to customize their insurance.

American Family Insurance: Best For Affordable Rates 

• Senior-specific discounts: Defensive Driving Discount, Good Driving Discount, DriveMyWay, MilesMyWay
• Average rate for 65-year-olds: $97 per month

When it comes to auto insurance for seniors, American Family Insurance ranks at the top for cheap car insurance rates. American Family allows seniors to save money by completing an approved defensive driving course, rewarding seniors who remain ticket and accident-free, and through two usage-based driving programs - DriveMyWay and MilesMyWay. American Family Insurance is a great starting point for seniors comparing auto insurance quotes. 

USAA Insurance: Best For Seniors with Military History

• Senior-specific discounts: Low Mileage Discount, Safe Driver Discount, SafePilot
• Average rate for 65-year-olds: $101 per month

USAA is the best choice for great rates and service for seniors with military service history and their families. USAA offers a low mileage discount, a discount for safe driving, and SafePilot, a usage-based telematics program. USAA understands the needs of active-duty and retired military members and their insurance needs, making it the best for seniors with military history. Extended family members may also benefit from USAA savings.

Auto-Owners Insurance: Best For Customer Satisfaction 

• Senior-specific discounts: Payment History Discount, Paid-in-Full Discount, Favorable Loss History, Low-Mileage Discount
• Average rate for 65-year-olds: $104 per month

Auto-Owners Insurance offers a low-mileage discount that can appeal to seniors and discounts for remaining claims free and paying in full. However, the most appealing aspect of Auto-Owners Insurance, besides its great rates, is its commitment to excellent customer satisfaction. Auto-Owners ranked above average in the J.D. Power 2023 Claims Satisfaction Study and the J.D. Power U.S. Insurance Shopping Study. When customer satisfaction matters to seniors, Auto-Owners rises above the competition. 

State Farm Insurance: Best for Senior Discounts

• Senior-specific discounts: Accident-Free Discount, Defensive Driving Discount, Good Driving Discount, Drive Safe & Save Discount, Mature Driver Discount (California)
• Average rate for 65-year-olds: $115

As one of the nation’s largest insurers, State Farm Insurance offers many auto insurance discounts for seniors. Seniors can get discounts for remaining accident-free and violation-free, completing defensive driving courses, and participating in their Drive Safe and Save mileage and driving behavior monitoring program. State Farm also has the largest network of insurance agents, making it easy to find an agent nearby for in-person policy payment and service.  

Progressive Insurance: Best Insurance for Low-Mileage Rates for Seniors

• Senior-specific discounts: Mature Driver Discount (California), Defensive Driving Discount, Accident Forgiveness, SnapShot Discount
• Average rate for 65-year-olds: $141

Progressive Insurance prides itself on being a versatile insurance company that can match your premium sensitivity to its coverages and discount options. One way it does that is with its SnapShot Program. SnapShot rewards seniors who drive less, limit hard braking and acceleration, avoid late-night driving, and stay off the phone while driving. It works by using a cell phone app or plug-in device, helping seniors remain safe with a dashboard that offers ways to improve their driving. 

Low-Cost Auto Insurance for Seniors

Maintaining low-cost auto insurance is important to seniors who carefully monitor their budgets. Below are five insurance companies that offer low-cost, full-coverage auto insurance for seniors. 

Factors to Consider When Choosing Car Insurance for Seniors

With so many auto insurance companies and options available, it can become overwhelming for seniors to determine which auto insurance company is the best. While premium is important, there are other factors that seniors should consider when choosing car insurance. 

Affordability

Price can be a top concern for seniors looking to cut expenses. However, it's essential to consider what you are getting with your auto insurance at a given premium. Budget-friendly plans that provide adequate coverage for seniors are accessible, but comparing quotes may require a little research and shopping.

You may want to consider the insurance companies outlined above and other national insurers, such as Geico, Nationwide, Allstate, Travelers, Farmers, and others. The insurance companies offering the best rate for the average senior may not be the best for you and your unique insurance needs and driving history. Compare quotes to determine the most affordable car insurance with the best coverage. 

Common Discounts for Senior Drivers

Each insurance company is unique in its rates and discount options. Still, most companies will offer some form of discount for senior drivers in the following category.

• Low-mileage discount
• Defensive Driving Discount
• Accident-Free Discount
• Full-Pay Discount
• Mature Driver Discount
• Usage-Based Insurance Discount (Telematics)

These discounts can be called different names depending on the insurer. Nationwide’s usage-based program is called SmartMiles, while Geico’s is called DriveEasy. Make sure you ask about available discounts and get an explanation of the qualifiers for each one. Discounts can be one of the easiest, most effective ways for seniors who are good drivers to save money on their car insurance. 

Senior-Specific Coverage Options

When trying to save money on car insurance, asking for the cheapest premium can be tempting. In many cases, however, the most affordable car insurance may mean minimal state-mandated coverage, leaving seniors vulnerable to uncovered property claims and legal liability. 

Some coverages are more convenience-related, like roadside assistance if you don’t have AAA and rental car coverage. If you choose these coverages, they can come in handy if your car breaks down on the side of the road or if you need to rent a vehicle while yours is being repaired due to an at-fault claim. GAP insurance can fill the gap between what you owe on your car and its current value in the event of a total loss. While these coverages can make life less complicated, others provide more crucial protections. 

Bodily injury liability and property damage liability coverages protect you against being held liable for injury costs and property damage to others related to an at-fault accident. Even with these coverages in place, it's essential to understand how the limits you choose for these coverages can leave your assets at risk if you aren’t properly covered. 

Comprehensive and collision coverages ensure you aren’t left with a damaged or totaled vehicle that you can’t afford to fix or replace in the event of an accident. If you have a loan on your vehicle, your lender will likely require these coverages. Lastly, medical payment coverages provide payment for injuries you may receive in an at-fault accident, and uninsured motorist coverage can protect at-fault drivers who don’t have insurance.

While looking for lower rates on car insurance, the main thing to remember is to prioritize the value you are receiving in coverage for that rate. Insurance rates are only as good as the protection they provide. Great insurance companies will review coverage options with you to ensure you have the protection you need at a premium you can afford. 

Customer Service and Support

With the changing needs of seniors, customer service and support have become even more important. When comparing auto insurance companies' customer service and support, consider whether or not an insurance company has 24/7 customer service and claims support, local agents, a self-service app, chat capabilities, and other service-related conveniences.

In addition, ask about its customer service, claims ratings, and claims process. The worst way to find out about an insurance company's poor ratings in these areas is when you experience it for yourself. You may be able to tell a lot about an insurance company’s customer service by the ease of the quoting process. 

Policy Flexibility

Insurance companies that focus on seniors' needs offer flexible customer service options, payment options, and discounts. You can participate in some, all, or none of the discount options available, but having the flexibility to choose gives you some control over your insurance premium. Flexible discount options may include low mileage, defensive driving course opportunities, and usage-based discounts for older drivers. 

State-Specific Considerations for Senior Car Insurance

Many states have sought to ease the financial burden of car insurance for seniors by mandating insurers operating in their state to offer specific discounts to senior drivers. The value of state-mandated discounts may be impacted by driving history. In some cases, you may be ineligible if you have had a ticket or at-fault accident in the last three to five years. The definition of senior driver varies from state to state but is typically for drivers over 50 or 55.

States with Special Senior Driver Programs

More and more states are recognizing the impact of increasing costs on seniors. The following states have mandated auto insurance discounts for seniors to help reduce car insurance costs:

• Florida
• Georgia
• Illinois
• New York
• Virginia
• Kentucky
• Tennessee

Other states may have similar mandates. Most mandates require seniors to be offered a discount for completing a defensive driving course. Check your local DMV or insurance company to determine if state-mandated senior discounts apply to your car insurance policy and the eligibility requirements for each one. 

High-Risk States for Senior Drivers

In addition to driving habits, age, mileage, driving record, and coverage, car insurance rates for seniors can also be impacted by the state they live in. Louisiana, Florida, and California rank highest for auto insurance rates for seniors. States like Montana, Washington, D.C., and Oklahoma also fall into the top 10.

There are many reasons one state may have higher auto insurance rates than another, and most of those factors affect the three highest auto insurance states.

• Weather-related claim frequency
• Denser populations
• State-mandated coverage requirements
• Average age of drivers
• Tort states vs no-fault states
• Average cost of repairs

Even in states with higher-than-average auto insurance premiums for seniors, you can get the best auto insurance rate possible by taking a few easy steps to maximize your car insurance investment. 

How to Save Money on Senior Citizen Car Insurance

Choosing the right car insurance company to get the best value and most comprehensive coverage can be intimidating, but it is doable with a few easy tips. Give yourself plenty of time before your renewal or a potential change in insurers so you can compare multiple insurers and work on areas of potential improvement to get a better rate. 

• Bundle Your Insurance Policies: Combining your homeowners, renters, or life insurance with your auto insurance can provide significant auto insurance premium savings and make managing your overall insurance portfolio easier.
• Keep a Clean Driving Record: Many senior-related car insurance discounts require you to be ticket and accident-free for at least three years to qualify. Keeping a good driving record will preserve your discount eligibility. Speeding tickets, accidents, and DUIs can quickly impact your car insurance premiums in a big way. 
• Utilize Senior Discounts: Ask about and utilize senior discounts. Some of them may require a little effort to complete a driving training course or utilize a telematics program, but the reduction in premium can be well worth the effort. 
• Review Your Coverages: Just because it's the coverage you’ve always had doesn't mean it's the coverage you need. Consider raising your deductibles to save on your insurance costs and ensure your coverage provides adequate protection without going overboard. 
• Watch Your Credit Score: Poor credit scores indicate a higher risk of a claim. Better credit means better insurance premiums. Monitor your credit for errors and ways to improve. 
• Look at Payment Options: Paperless bills and pay-in-full are convenience-based ways to save money on car insurance. 
• Compare Quotes: The only way to ensure you get the best car insurance rate is to compare quotes. Rates and discounts can vary widely from one insurer to another. The best insurance company for one senior may not be the same for another. Compare insurers for yourself.

FAQ: Best Car Insurance for Seniors

Why do seniors need specialized car insurance?

Seniors face ever-changing needs that impact their auto insurance. Without specialized car insurance, a senior’s auto insurance policy can’t or won’t grow with them. Seniors may have changes in location, driving habits, premium, vehicle usage, coverage needs, and customer service accessibility needs. An insurance company that provides for seniors’ ever-changing insurance needs will provide better coverage with lower premiums and enhanced customer service to meet seniors where they are. 

Does AARP have good car insurance?

AARP car insurance is offered through The Hartford. To qualify, insureds must be 50 or older and AARP members. AARP offers new car replacements, accident forgiveness, a disappearing deductible, and senior-specific benefits like RecoverCare assistance after an accident. 

AARP falls below other national insurers in average premiums for seniors. It has a higher level of customer complaints, based on data from the National Association of Insurance Commissioners (NAIC), as reported by USA Today. However, the best way to determine if AARP’s car insurance is right for you is to compare their cost of car insurance, discounts, and coverages to other insurance companies based on your needs. 

What is the best insurance for seniors over 70?

American Family offers the lowest premium provider for seniors age 70 and up overall. American Family provides lower premiums and discount opportunities for seniors. However, the best car insurance companies for seniors are based on more factors than price. They can only be determined by getting car insurance quotes based on driving habits, location, other insurance policies, and coverage needs. Your insurance needs are as individual as you are. The best insurance company is the one that recognizes your individuality and responds accordingly.

Article written by Shawnette Good. 

Shawnette is an insurance professional with 30 years of industry experience helping consumers understand complex insurance topics. Outside of writing, Shawnette enjoys long nature walks and volunteering in her community.