Car insurance rates increase steadily for drivers after they turn 65. And that is a lot of drivers; The U.S. population that’s 65 and older now stands at 54.1 million, according to 2022 data from the U.S. Census Bureau.

But don’t give up hope: Shopping around and asking about discounts can help you find the cheapest car insurance for seniors.

What you need to know about car insurance for seniors

Car insurance costs tend to climb as you advance through your senior years. Although young and inexperienced drivers pay the highest auto insurance costs, seniors also see their premiums rise after age 65.

In fact, it’s possible that your insurer won’t renew your policy once you reach a certain age.

But you should still be able to find a policy with a new insurer if your current company drops you. Even better, there are many ways to save on auto insurance costs once you reach your 60s and beyond.

How much does car insurance for seniors cost?

A recent CarInsurance.com analysis found that Nationwide had the cheapest full coverage car insurance rates for seniors at $1,134 per year, followed by USAA at $1,171 per year and Geico at $1,244 per year. Note that USAA is only available to members of the military community and their families.

Average annual rates for senior drivers age 55-75, by company
Company State minimum liability only 50/100/50 liability only Full coverage
Nationwide$501$600$1,134
USAA$317$396$1,171
Geico$352$455$1,244
Erie$342$395$1,288
State Farm$418$527$1,343
American Family$605$667$1,345
Auto-Owners$388$488$1,363
Travelers$549$665$1,464
Progressive$578$717$1,683
Allstate$581$697$2,011
Farmers$746$953$2,133
Mercury$807$1,027$2,345
Kemper$739$930$2,376

How do you get cheap car insurance for seniors?

If you are a senior, the best way to get cheap car insurance is to shop around and compare rates. Each insurer has its criteria for setting rates, and some are likely to offer better deals to seniors and drivers who share your profile than others.

There are also other things you can do to reduce your costs:

Ask about discounts for seniors

There are several discounts that might be available to you as a senior driver.

For example, some insurers may offer discounts to military and government retirees. And sometimes, sticking with the same insurer over several years will earn you a loyalty discount.

You might be eligible for discounts if you bundle your coverage, such as buying car insurance and homeowners insurance from the same company. Remaining accident- and ticket-free also can net you a discount on premiums.

Take a defensive driving course

Completing a defensive-driving course can net you a discount. In fact, some states have laws mandating that seniors must be offered a price break on their premiums after completing this type of course. Organizations such as AARP, AAA and the National Safety Council offer such courses.

Pay less if you drive less

As you age, you might drive less. Seniors are less likely to have long commutes to work, and many older drivers are content to spend more time at home.

If this is true of you, look for an insurance company that offers a price break to those who drive relatively few miles annually. Typically, you qualify if you drive fewer than the average miles each year, but rules vary by insurer.

Some insurers will give you an even bigger discount if you agree to have your driving behavior monitored using a telematics device.

With these programs, you download an app to your smartphone or install a device in your car. The insurer can measure things like speed, hard braking and whether you are using your smartphone while driving.

“Most companies offer a discount just for signing up, with the possibility of a greater discount for good driving behaviors,” says Robert Passmore, vice president, auto and claims policy for the American Property Casualty Insurance Association.

Learn more about How Does Usage-Based or Pay-As-You-Drive Insurance Work

Are there any insurance companies that offer coverage just for seniors?

For nearly 40 years, AARP members have been eligible for insurance through the AARP Auto Insurance Program from The Hartford.

Policyholders get rates and rewards that are exclusive to those who belong to AARP. For example, you may qualify for a 10% discount simply for being a member.

Agreeing to have your driving monitored through the TrueLane Program saves you 12% upfront and the possibility of a 25% discount at your next renewal.

The Association of Mature American Citizens offers auto discounts to members through Travelers Insurance.

Cheap car insurance for seniors by states

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FAQ: Car insurance for seniors

What are government-mandated auto insurance discounts for seniors?

Dozens of states mandate that drivers receive a discount after completing a qualifying defensive-driving course. In many states, these price breaks are available to drivers who are 50 and older.

Check with your state’s department of insurance to find out which rules apply in your state.

When do insurance costs start to increase for seniors?

CarInsurance.com 2022 data show that you’ll pay the least for car insurance at age 60 – $1,511 per year for full coverage – but then start to climb, jumping to $$1,555 at 65, $1,661 at age 70 and $1,817 at age 75. Auto insurance for seniors over 80 is particularly expensive.

Check out our detailed guide on Average car insurance rates by age

Does auto insurance go down when you retire?

Auto insurance rates do not automatically decline when you retire. However, rates tend to be low for early retirees in their 60s. After that, rates tend to rise. But there are several things a driver can do to bring those costs down, such as taking a defensive-driving course or becoming eligible for a low-mileage discount.

Final thoughts: Car insurance for seniors

As we age, health issues – natural bodily and cognitive decline and illness – may gradually erode our driving skills. However, there are many things you can do to lower your costs. The most important of these is to shop around and compare rates until you find the insurer that fits your needs at the best cost.

Resources & Methodology

Sources:

  1. U.S. Census Bureau. “National Senior Citizens Day: August 21, 2022.” Accessed September 2022.
  2. AARP. “Auto Insurance Program from The Hartford.” Accessed September 2022.
  3. AARP. “Car Insurance Discounts & Savings Hartford.” Accessed September 2022.
  4. AMAC. “Auto Discounts to Members Through Travelers Insurance.” Accessed September 2022.
  5. NAIC. “State Insurance Department Information.” Accessed September 2022.

Methodology:

CarInsurance.com commissioned Quadrant Information Services to pull rates in 2022 for male drivers aged 55-75 with a good driving record and full coverage insurance on a 2021 Honda Accord LX.

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Contributing Researcher

Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.