What Is the Best Car Insurance Company for Seniors

Many drivers will see increasingly lower insurance rates as they get older and get more driving experience. However, as you continue to age — usually starting at age 65 — you may see your car insurance rates increase slightly, as insurance companies consider seniors slightly more risky to insure than middle-age drivers.

MoneyGeek collected thousands of quotes to figure out the cheapest companies for seniors on average, broken down by location and driving history. We have also recommended the best car insurance companies for seniors based on which best serve different types of senior drivers.

Table of Contents

• Cheapest car insurance for seniors - National
  
• Cheapest car insurance for seniors - By state
  
• Best car insurance companies for seniors
  
• Average cost of car insurance for seniors
  
• How seniors can save on car insurance
  

Cheapest Car Insurance Companies for Senior Drivers

MoneyGeek reviewed the car insurance companies that write policies in most of the country to find the cheapest car insurance for seniors. On average, the cheapest companies for a 70-year-old senior are:

• State Farm: $1,145 per year
• GEICO: $1,151 per year

USAA was the cheapest car insurance company overall, but it only offers coverage to active and retired military members and their families.

9 Cheapest Car Insurance Companies for Senior Drivers

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The cost of car insurance for seniors depends on several individual factors, including age, credit score, driving history, where you live and the type of car you drive. As you get older, age can make a big difference in the rate quotes you get from car insurance companies. Therefore, comparing car insurance quotes from several companies can help you find the best rates for your circumstances.

We calculated the most affordable rates based on a car insurance policy with 100/300/100 liability insurance and comprehensive and collision coverage for a 70-year-old driver.

Cheapest Car Insurance Companies for Senior Drivers - By State

Insurance is regulated by states, so the cheapest car insurance for seniors might be different in your state than it is at the national level. For the most part, GEICO (cheapest in 20 states) and State Farm (16 states) remain the cheapest options on average. These insurers offer the cheapest insurance in Florida, Georgia and California for example.

But there are many other insurance companies that rank top for affordability in individual states. Erie and Farm Bureau insurance affiliates are the cheapest options in three states each. MetLife is the cheapest car insurance for seniors in Michigan and New Mexico.

USAA is excluded from this analysis because of its eligibility requirements, but if it were included it would be the cheapest in 35 states, so eligible drivers should get a quote.

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• State

  Company

  Annual Premium

• GEICO

  $795

• GEICO

  $784

• Southern Farm Bureau

  $696

• GEICO

  $712

• State Farm

  $1,101

• GEICO

  $978

• GEICO

  $954

• GEICO

  $673

• State Farm

  $1,091

• GEICO

  $1,163

• GEICO

  $1,232

• GEICO

  $614

• GEICO

  $448

• State Farm

  $485

• GEICO

  $690

• GEICO

  $507

• Nationwide

  $693

• State Farm

  $735

• Southern Farm Bureau

  $1,614

• State Farm

  $410

• Erie

  $1,502

• GEICO

  $385

• MetLife

  $2,932

• State Farm

  $840

• State Farm

  $790

• Mississippi Farm Bureau

  $721

• State Farm

  $618

• Nationwide

  $515

• Nodak Mutual

  $399

• State Farm

  $683

• Concord Group

  $567

• GEICO

  $854

• MetLife

  $863

• GEICO

  $1,064

• GEICO

  $1,920

• Erie

  $598

• State Farm

  $870

• GEICO

  $846

• State Farm

  $1,209

• State Farm

  $726

• GEICO

  $828

• State Farm

  $603

• State Farm

  $741

• Farmers

  $786

• GEICO

  $830

• Progressive

  $510

• Vermont Mutual

  $473

• GEICO

  $694

• State Farm

  $700

• Erie

  $658

• State Farm

  $611

Rates in this analysis are based on a sample 70-year-old driver with 50/100/50 liability insurance and comprehensive and collision coverage.

Best Car Insurance Companies for Senior Drivers in 2021

Finding cheap car insurance for seniors is not a one-size-fits-all process. Each car insurance company evaluates drivers based on their personalized factors, such as 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 insurance available.

While State Farm was the most affordable option for most categories in our research, this could vary based on your circumstances, so always get and compare your personalized quotes to find the cheapest senior car insurance.

Best Overall: State Farm

Although State Farm doesn't offer a senior discount specifically, the company does offer several discounts that can reduce your car insurance premiums.

State Farm

Ways to save with State Farm include an accident-free discount, a good driving discount and discounts for cars with specific safety features. You also can enroll in State Farm's Drive Safe & Save program, which monitors your driving and rewards you for good driving habits. For senior drivers who drive less these days, State Farm also offers a premium reduction if you drive less than 7,500 miles per year.

Car Insurance Rates for Seniors - Average Driver

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Best for Senior Drivers With a DUI: State Farm

Unfortunately, having a DUI on your record will adversely affect your car insurance rates for an unspecified period. For customers with a DUI on their driving record, State Farm offers the cheapest senior car insurance rates.

State Farm

Getting cheaper rates with State Farm could be especially valuable if you travel often, as the company offers coverage on motorhomes, boats and off-road vehicles. Your State Farm policy may provide coverage on rental cars so you can avoid that costly expense at the rental counter.

Car Insurance Rates for Seniors With a DUI

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Best for Senior Drivers With Tickets: State Farm

Having a recent ticket on your record — or several tickets over the years — can result in an increase in your car insurance costs.

State Farm

For seniors, State Farm offers the most competitive rates for drivers with a ticket. In fact, State Farm's average annual premium is more than $500 lower than MetLife, the most expensive insurer for this category in MoneyGeek's analysis.

Car Insurance Rates for Seniors With a Ticket on Their Record

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Best for Senior Drivers With Accidents: State Farm

According to the Insurance Institute for Highway Safety, Highway Loss Data Institute, drivers age 70 and older have higher crash rates per mile traveled than middle-aged drivers. Only young drivers have a higher crash rate.

State Farm

On average, State Farm provides the lowest car insurance rates for seniors with an accident on their record. That's good news as there is an increased risk of accidents for drivers age 65 and older.

Car Insurance Rates for Seniors With an Accident on Their Record

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Best for Military Families and Veterans: USAA

Specifically for active and retired military members and their families, USAA continually offers the lowest rates on senior car insurance.

USAA

USAA offers safe driver discounts for those with good driving records for at least five years. You also can receive discounts based on the number of miles you drive each year, which could prove substantial if you no longer drive much.

Car Insurance Rates for Seniors With a Military Background

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Average Senior Car Insurance Rates by Coverage Type

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%.

AVERAGE CAR INSURANCE FOR A SENIOR

Minimum liability annual cost: $797

Comprehensive/Collision (50/100/50) annual cost: $1,334

Comprehensive/Collision (100/300/100) annual cost: $1,454

How to Lower Your Car Insurance Premium After Turning 55

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.

Expert Advice

1. Are seniors charged more for car insurance?
2. What are ways seniors can save money on car insurance?
3. What should seniors look for in car insurance companies to find the best coverage?

Heidi Petschauer, CIC

President, Petschauer Insurance

Learn More About Car Insurance

About the Author

What Is the Best Car Insurance Company for Seniors

Source: https://www.moneygeek.com/insurance/auto/best-cheap-car-insurance-for-seniors/

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