Cheapest car insurance for seniors

For most people, auto insurance rates go up after age 65. That's because, statistically, senior drivers are a higher risk; slowed reaction times and the impact of age on vision are among the reasons.

The average cost of car insurance for a 65-year-old is $515 a year, or $43 a month, for state minimum coverage and $1,402, or $117 a month for full coverage, based on the most recent Insurance.com data. Rates rise steadily as you get into your 70s and 80s.

Fortunately, however, there are car insurance discounts for senior drivers and plenty of other ways to save on senior car insurance.

Let's take a look at how to find the cheapest car insurance for seniors.

Car insurance for seniors

The cost of car insurance for seniors goes up as you get older, but it's still nowhere near what teens and young drivers pay, and there are ways to get cheaper rates. Insurance companies do recognize your experience on the road.

"Seniors have experience driving, so it is not comparable to teens," said Janet Ruiz, director of strategic communications at the Insurance Information Institute. "Many companies do have safe driving courses for seniors to alert them to the specific things they may encounter as they age. Some give a discount if you take the safe driving course, which is usually offered online."

Some companies even cater specifically to senior drivers, like The Hartford, which partners with AARP for its auto insurance program.

How much is auto insurance for seniors?

Auto insurance in your 50s is usually cheaper than it is for other age groups. This age group is considered the safest on the road, based on accident statistics. 

In your 50s, you've got a lot of experience behind the wheel, quick reflexes, good health and reliable hearing and vision. As you move into your 60s is when rates tick up a bit, so it becomes essential to find out who has the cheapest car insurance for seniors.

Here are the average costs for four different age groups and three types of insurance coverage. We include the cost of a bare bones state minimum policy, a liability-only policy with higher limits of $50,000 for bodily injury coverage per person injured in an accident caused by you, $100,000 for everyone injured in the accident and $100,000 in property damage coverage, written as 50/100/50. We also included a policy with liability limits of 100/300/100 plus collision and comprehensive, with a $500 deductible.

Expert tip: You need collision and comprehensive coverage if you have a financed or leased car, or a newer car you can't afford to replace.

When you hit 65 is when you're likely to see a bump in your car insurance premium. It's a good time to re-evaluate your current insurance and compare to others that cater to car insurance for seniors.

Why do auto insurance rates for seniors go up?

Car insurance companies base rates on how much risk a driver poses to them. Basically, if statistics show you are in a group that is more likely to file a claim, you'll pay more for auto insurance. Mature drivers have experience on their side, but also start to see a decline in vision, response time and other things that affect driving skills.

Drivers ages 70 and older have higher crash death rates per mile driven than middle-aged drivers (ages 35-54), according to the Centers for Disease Control and Prevention. Much of that’s due to increased vulnerability to injury in a crash. In 2019, the latest statistics available, about 8,000 older adults, 65 years of age and up, were killed in traffic crashes and more than 250,000 were treated in emergency departments for crash injuries.

The CDC notes that age-related physical issues, such as arthritis, reduced flexibility and limited range of motion and decline in vision, plus diminishing cognitive functioning can affect senior drivers' driving abilities. This is why keeping a stellar driving history will be important so that you can get cheaper car insurance rates. If you drive beyond your current abilities, and get a ticket or in an accident, this will signal to insurers that you pose a higher risk.

However, there are ways to save on senior citizen car insurance.

Senior car insurance discounts are available to help reduce rates with some companies, and most will offer a discount if you take a defensive driving course.

Expert Advice

Daniel Ferrara

Emeritus Sales Rep for Liberty Mutual, based out of Katonah, N.Y.

“Car insurance rates tend to rise as driver’s get older because insurance carrier statistics prove that older drivers get into more accidents as their reflexes get slower. Drivers reactions’ time slow as they age,” Ferrara says. “What age do rates go up? That varies from carrier to carrier but generally it is around age 64.”

How seniors can find cheap insurance rates

A great place to start saving on your car insurance is with discounts. Several auto insurance companies offer discounts that are specifically applicable to mature drivers.

Being loyal to your auto insurance company can earn you up to 30% off your premium. Geico, Nationwide, American Family and Progressive are among those companies that promote loyalty savings programs. You should still shop around, however. Most experts agree that loyalty savings rarely outweighs saving either by switching providers.

Good driver and safe driver discounts are available to all ages, and from most companies, and can get you between 5% and 25% in savings. The insurance company usually requires that you have a clean driving record for at least three years. That means no DUIs, no moving violations and no at-fault collisions.

AARP offers mature driver courses that can reduce your premiums from 5% to 15% in some cases. In fact, most states require states to offer a discount.

Daniel Ferrara, an emeritus sales rep at Liberty Mutual, has several suggestions for getting the best rates as a senior driver:

• Have your auto and home insurance with the same insurance carrier for a multi-policy discount.
• Take a defensive driving course. Even if you have a clean driving record, you’ll likely get about 10% off your rates.
• Raise your deductibles on the collision and comprehensive portions of your coverage.
• Ask about senior citizen discounts or a low mileage discount. Even though rates tend to go up as you get older, some carriers do offer a senior citizen discount. As you get older you drive less miles per year as well as tend to drive at times of day when there are less cars on the road. He adds that some carriers will give a specific discount to older driver’s such as AARP membership or with the AAA. “As far as what percentage the discount you can get from a senior discount or a low mileage discount, again it varies from carrier to carrier that offers them, but 2% to 10% is probably the range,” he says.
• Inquire about the possibility of opting in for a telematics device discount. It is basically a little device you plug into the car for 90 days or so, and based on good driving habits, low mileage and no nighttime driving, you might get as much as a 30% discount.

Car enhancements can also help seniors.

"Newer cars have many benefits for seniors with automated driving assistance features, back-up cameras, etc. IIHS Safety ratings are often considered by insurance companies when putting together the cost of the auto policy,” the Insurance Information Institute’s Ruiz says.

Perhaps you have retired and you're driving a lot less. This is the perfect time to tap into low-mileage car insurance discounts. These usually kick in if you drive less than 7,500 or 10,000.

"Driving fewer miles means you have less road time, resulting in lower risk of getting into an accident," Ruiz says. "Most insurers ask for yearly mileage to give a lower rate to drivers who are on the road less."

To get an even bigger discount for driving less (and also for showing good driving behavior), you can participate in usage-based insurance (UBI) programs where your insurance company monitors your driving. Most UBI programs use a mobile app on your smartphone to monitor your driving, but a few may instead require a device to be installed in your car. The monitoring can help you adjust any bad driving behavior and get a discount once you do. The discount can be quite substantial: 30% or more.

If you don't want your driving skills monitored, there are other plans that are based on how many miles you drive. These pay per mile programs may be more to your liking if you are driving few miles annually.

If you take precautions to thwart car thieves, your insurance company usually shaves some off your bill. You could save up to 30%.

Bundling your homeowners or renters insurance along with your auto insurance can save up to 30%. Average bundling discounts are:

• Auto and homeowners insurance at a savings of 11%.
• Auto and condo at almost 10%.
• Auto and renters at 5%.
• Auto and life insurance at 2%.

Take advantage of a multi-car discount of up to 25%, too, by insuring two or more cars with the same company. These discounts typically apply to your collision, liability and comprehensive coverages. It doesn't always work best to bundle, though. Compare and contrast premium costs before merging.

If you can pay your car insurance bill in full upfront, you could save up to about 10%.

How to get the cheapest car insurance for seniors

What is the best car insurance for seniors? That depends on a number of factors and will differ for everyone.

Comparison shopping is important at any age and for any product. As life brings changes, and companies quietly shift rates and costs, you've got to stay on top of not only who gives you the best deal, but the best auto insurance for your current situation.

You may already have the best deal going with your current car insurance company. But the only way to be sure is to shop around and compare rates.

The best time to assess your auto insurance and gather new quotes is each year when your current policy is up for renewal.

Also, take a look at your insurance should any of these circumstances arise:

• Purchase a new or different car
• Add or remove a driver
• Marriage
• Divorce
• Moving
• Add a teen driver
• Home purchase
• DUI or major violation - review DUI insurance
• Accident
• Change in credit score

When shopping around you want to get senior car insurance quotes from at least three companies, more if you have time. Unless you are making changes, like adding or removing a car from your policy or changing limits, you should be able to use your current policy's information to make sure you're comparing like policies. Low cost auto insurance for seniors may come at the cost of less coverage or a higher deductibles than you can afford.

Increasing your deductible, however, is a great way to save Just bumping up that from $250 to $500 drives down the cost for collision and comprehension. That'll save you, in some cases, up to 30%. You can save even more if you raise your deductible to $1,000. Of course, though, this means paying more out of your pocket should you cause an accident, so make sure it is set at an amount you could pull from savings if need be.

There are some other reasons your car insurance rates drop to be aware of, like moving to a ZIP code with lower rates.

What company has the cheapest car insurance for seniors?

Several auto insurance companies tend to fare well in "best and least expensive for seniors" surveys, including The Hartford AARP Program, which was created solely with the older driver in mind. This insurance plan guarantees you won't get dropped unless you lose your license or don't pay your premium. It even has a program called RecoverCare that kicks in to help cover costs that Medicare doesn't should you get in an accident. It also includes lawn maintenance, snow removal, transportation services, food preparation and dog walking.

Amica, State Farm, Geico and Allstate additionally rate highly for companies that cater to senior drivers. Geico, for instance, has a policy called Prime Time, a guaranteed renewal program offered in 30 states to those 50 or older who have no one on the policy under the age of 25 and meet other qualifying items. Allstate offers senior discounts for those older than 55 or working part-time. Dairyland provides a pay-as-you-go option that is ideal for seniors who may have been denied standard insurance, and Metromile is a cheap alternative for those who drive infrequently.

There is no single company that's the best for cheap auto insurance for seniors. The cost will vary between companies due to your own personal risk factors (age, location, driving record, vehicle model, etc.). Shopping around for good rates and looking for discounts to lower the rate even more is the best practice.

Some alumni groups and professional business associations also offer group plans and reduced rates. Check with any organizations you're a member of to see what they offer. Buying car insurance as part of a group can earn you many benefits. To get low-cost car insurance for seniors, shop around and ask for discounts of any type to discover what you're eligible for and can help reduce your premium.

Beware senior car insurance scams

Make sure when you're scouting for that affordable auto insurance that you don't fall victim to any scams. According to the National Council on Aging, financial scams "targeting seniors have become so prevalent that they're now considered 'the crime of the 21st century.'"

There are several scams that seniors should watch out for, according to AARP:

• Stealing your premiums: An agent pockets your insurance premiums instead of sending it to the insurer.
• Selling phony insurance: An agent or company rep sells you fake coverage from a phony insurance company. Or the agent sells you bogus coverage using a legitimate company's name, or a name that's similar to a legitimate insurer. You might receive an official-looking policy or proof of insurance that's worthless. You could lose thousands of dollars if you suffer a loss and don't have a real policy to pay your claim.
• Selling coverage you don't want or need: Maybe the coverage is real, but it's expensive, unnecessary, and your current policy may already cover that risk.
• Worthless investments: You may be urged to invest in insurance-like instruments. One is viaticals, which are investments in life policies taken out on sick or terminally ill people. Viaticals can be a legitimate investment, but some can also be phony or misleading. Another scam is promissory notes, in which agents promise quick, high and certain returns for investing in promissory notes supposedly backed by insurance. Often the promissory notes don't exist.

If you're looking for a low-income auto insurance for seniors and find a rate that seems too good to be true, make sure to check the company out first. You can check out their financial strength with AM Best and check with your state's Department of Insurance to make sure they are a legit company.

Shop wisely for senior car insurance

Navigating scams means being alert and being smart. You're in the most wonderful decades of your life; make sure you're not spending too much on your car insurance so you can put it toward that next vacation or towards supplies for a hobby you now have time to enjoy.

Make certain to shop around with multiple car insurance companies to get the best auto rates for seniors. Start with your current insurance provider to get a baseline for costs and then using the same policy parameters (liability limits, coverages and deductibles) shop with at least three other car insurance companies. You may find other insurers don't rate as harshly for aging drivers as your present one or find who you have is still the best choice.

If you find a smaller insurance company is cheap -- don't switch until doing some research. Check out the company's financial strength with someone like AM Best and then also check for reviews on customer and claims service. You want any company to have the means to pay out on claims and also have good customer service so you don't feel ignored in your time of need after an accident.

Methodology

Insurance.com in 2022 commissioned Quadrant Data Services to field rates in all ZIP codes from top insurance companies for drivers age 65 and up. Rates are based on a 2021 Honda Accord LX, good credit, and a clean driving record.

-- Charlene Arsenault contributed to this story.