The Best and Cheapest Auto Insurance Companies for Seniors

The Best and Cheapest Auto Insurance Companies for Seniors

If you're a senior driver, finding the best insurance company for you means securing great customer service at the right price.

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The average cost of car insurance for a 65-year-old is $1,738, or around $145 per month for a full coverage policy — slightly more expensive than what most younger drivers pay. The cheapest insurer that is most widely available for 65-year-olds is State Farm. Your car insurance rates depend on a variety of personal characteristics, including location, driving history and age. You may find your best rate by comparing insurance quotes across multiple insurers.

What is the best car insurance company for seniors?

The best car insurance company for senior citizens varies based on several factors, including location, driving history and current financial profile. No one insurer is best for everyone. However, we have compiled the best insurers for seniors based on a certain type of experience.

The best overall pick for auto insurance for seniors: State Farm

State Farm's cheap rates, national availability and dependable customer service make it the best pick for most seniors.
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State Farm is the cheapest insurance provider for most seniors in 31 states — more than any other insurer. Combine cheap rates with the range of discounts the company offers for safe driving, safe vehicles and loyal customers, and most budget-conscious seniors are more likely to find affordable car insurance with State Farm than other providers.

According to a survey conducted by ValuePenguin, policyholders with State Farm are likely to be satisfied with their claims. Seventy-three percent of claimants described themselves as "extremely" satisfied by their most recent experience with State Farm. Moreover, State Farm receives few complaints relative to its market share about its claims process, according to the National Association of Insurance Commissioners.


The cheapest insurer for low-mileage drivers: Metromile

Metromile's pay-per-mile plan is the best for seniors who may find themselves driving a lot less after retirement.
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Metromile is best for seniors who find themselves away from the wheel more often than not. Premiums are generally calculated on a per-mile basis, which makes it a cheaper option for seniors who may be driving far less frequently after retirement.


The best for military members and veterans: USAA

If you're an active or retired service member, USAA offers the most affordable auto insurance for you and your family.
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USAA is the cheapest auto insurer for seniors. However, you are only eligible to apply if you are a service member, veteran or family member. USAA's affordability is a standout, and its customer service reputation is one of the best in the auto industry.


The best for customer service and discounts for senior drivers: Allstate

Allstate's considerable discount offerings and fantastic customer service make it a great pick for senior drivers.
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Allstate's customer service is only beat out by USAA, which is exclusive to its military members. However, this fantastic customer service does come at a cost. Allstate is one of the most expensive options for coverage in nearly every state we surveyed. However, while Allstate may not offer the cheapest base rates, it does feature great discounts, including a responsible payer discount, a full-pay discount and a safe driving bonus.

How much is auto insurance for seniors?

While the average cost of car insurance for 65-year-old seniors is $1,738 per year, rates are likely to increase as the policyholder ages. This is because insurers view older drivers as riskier to cover. ValuePenguin found that drivers aged 75 pay 17% more than the youngest senior drivers, while those aged 85 can pay as much as 43% more for full coverage car insurance.

Age of policyholder
Annual premium
Age 65$1,738
Age 75$2,042
Age 85$2,477

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Cheapest car insurance for seniors, by state

Depending on the state, the average cost of auto insurance for seniors may differ by as much as $3,030 per year.

We analyzed the average cost of car insurance for seniors in each state to find the cheapest insurer for most people. Drivers in Maine are the most likely to find affordable coverage, as the statewide average is less than $1,000 per year. Conversely, in Michigan, the cost of car insurance for seniors tops $4,000 per year.

In most states, State Farm is the cheapest provider for seniors. Geico and Progressive are the other large providers with low rates for seniors — though they were far less frequently the cheapest option.

Seniors who are retired from the armed forces or who have a retired veteran in their family may qualify for coverage from USAA. In the following table, an asterisk denotes that USAA is the cheapest option overall. However, because of its exclusive membership, we did not list it as the cheapest car insurance for most seniors.

State
Age 65
Age 75
Age 85
Cheapest provider
Maine$971$1,002$998Concord Mutual
Wisconsin$1,069$1,292$1,612State Farm*
Indiana$1,161$1,408$1,861State Farm*
Idaho$1,206$1,525$1,908State Farm*
North Carolina$1,225$1,225$1,225Geico
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Table is organized from least to most expensive states for car insurance for 65-year-olds.

Cheapest car insurance for drivers with prior incidents

Drivers who have received a ticket for a traffic violation or who have been at fault in an accident will pay higher rates for car insurance than other drivers. Seniors who are pulled over for speeding are likely to see increases of 24% to the cost of their car insurance. Accidents tend to raise the cost of coverage by much more: We found that seniors could pay 53% more for coverage after an accident.

Cost of insurance after a speeding ticket
Rates in this graph reflect the changes to a 65-year-old's car insurance policy.
State
Avgerage rate
% increase after speeding ticket
California$1,84149%
North Carolina$1,22538%
Michigan$4,00136%
Massachusetts$1,39135%
Kentucky$2,33033%
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States are listed according to the largest price increase following an accident.

However, depending on the state, your insurance provider may be more forgiving. After one speeding ticket, insurers in Texas and North Dakota only raise their rates by 10%. In California, however, rates are likely to increase by 49% after one speeding violation.

Cost of insurance after an accident
Rates in this graph reflect the changes to a 65-year-old's car insurance policy.

Drivers who are at fault in an accident will see higher rates no matter the state, but in Rhode Island, Wyoming and New York, the surcharge following an accident is likely to represent a smaller share of your original premium.

State
% increase after accident
California95%
Indiana71%
Minnesota67%
Oregon66%
New Jersey65%
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States are listed according to the largest price increase following an accident.

Car insurance rate changes for seniors

As many drivers cut down on the time they spent behind the wheel during the coronavirus pandemic, it's possible that rates will remain lower than in past years throughout 2021. However, 2020 to 2021 was the first year that rates dropped on average since 2015 to 2016, so it's not a foregone conclusion that costs will stay low throughout the rest of 2021 and into 2022. Fortunately, however, going into 2021 the cost of car insurance rose for all drivers — including seniors — in just five states: Rhode Island, Massachusetts, Florida, Indiana and New York.

State
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
Arkansas1.9%4.6%9.6%1.1%-1.0%-4.8%
Michigan3.9%4.0%7.0%2.7%3.0%-4.3%
Ohio2.4%3.3%4.7%0.4%-1.6%-4.3%
Louisiana1.8%8.4%12.1%5.5%-1.5%-4.2%
Kentucky2.8%6.3%7.2%0.5%-1.8%-4.1%
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States are organized according to the lowest rate increase for 2020-21.

How seniors can find cheap insurance rates

Though auto insurance rates will typically go up when you are over 65 years old, you will also gain new coverage and discount options. Seniors citizens shopping for auto insurance should consider a variety of factors, including premiums, discounts and whether an insurer can offer a renewal guarantee. There are many ways to keep your car insurance costs low.

Change your driver status

After 65, many drivers are starting to think about retirement. Most insurers will give you a discount when you change your driving status from "commuter" to strictly driving for pleasure. This means the miles you drive every year will be greatly reduced, which can save you significant money. When you get a quote online, you can select "leisure" and evaluate how many miles you'll be driving in retirement.

To learn more, check out our article on 6 Ways Retirees Can Save on Insurance.

Take a defensive driving course

Drivers 55 and older can receive a government-mandated auto insurance discount for seniors by taking a defensive driving course. The eligible age, as well as the discount amount, varies by state. Some of these classes can be taken online from the comfort of your home, while others are offered in person.

You can also get auto insurance senior discounts by taking courses through companies like AAA and AARP. Most courses cost around $20, which is certainly worth it for the insurance savings. Remember, the discount amount will depend on where you live and your insurance provider.

Shop around for senior coverage and discounts

At certain auto insurance companies, seniors can get discounts as they get older. For example, The Hartford, in partnership with AARP, offers car insurance for seniors, as well as special features for policyholders over the age of 50. If you plan on moving in retirement, it's important to remember that car insurance premiums will vary depending on state and neighborhood. So consider comparing quotes from multiple insurers to find your best rates

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Methodology

This analysis used insurance quotes for thousands of ZIP codes in every state in the U.S. We compared rates for a full coverage auto insurance policy for three drivers, aged 65, 75 and 85. We also checked how having a clean driving record, one speeding violation and one at-fault accident would affect a person's premiums.

The full coverage policy used for this survey included liability, comprehensive and collision insurance. Limits and deductibles are listed below.

Coverage type
Study limits
Bodily injury liability$50,000 per person/$100,000 per accident
Property damage liability$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Comprehensive and collision$500 deductible

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