Seniors and retirees can get car insurance for much cheaper than young adult drivers because they have many years of experience behind the wheel and may drive fewer miles. However, rates also tend to rise once drivers reach their 70s, so you may need to change insurance companies over time to ensure you're getting the best rates and coverage.
When shopping for car insurance as a senior, it's important to make sure that the company not only offers low premiums, but also key features like an easy claims process and guaranteed renewal program. Ahead, CNBC Select reviews the best car insurance companies for seniors based on various categories. Many of our top picks are also top picks for anyone searching for the best car insurance. (See our methodology on how we chose the best car insurance for seniors.)
Best car insurance for seniors
- Best overall: Geico
- Best for low-mileage drivers: Nationwide
- Best for customer service: Auto-Owners
- Best for military members: USAA
Compare auto insurance companies
Best overall
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursem*nt and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
Pros
- Lowest average rates
- Inclusive coverage options, including high-risk drivers
- Available nationwide
Cons
- High premiums for high-risk drivers
- Fewer branches for in-person services
Geico is highly rated for financial strength by AM Best and for customer satisfaction by J.D. Power. Seniors can take advantage of a number of discounts available to bring down the cost of coverage, such as for defensive driving course completion, being accident-free for at least five years and for retired government employees. For those aged 50 or older who qualify, its guaranteed renewal program could protect you from being dropped by your insurance company as you get older.
Best for low-mileage drivers
Nationwide Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you.
Terms apply.
Pros
- Available in 47 states and the District of Columbia
- Lowest average premiums for full coverage
Cons
- High average premium for minimum coverage
Nationwide is ideal for retirees who may be driving less than they used to. Its SmartMiles program offers flexible monthly rates based on the number of miles you drive, so the less you drive, the less you pay. Coverage is available in most states and Nationwide is rated highly for both financial strength and customer satisfaction.
Best for customer service
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Pros
- tOffers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from JD Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
Auto-Owners consistently achieves high customer and claims satisfaction ratings by J.D. Power and has a superior A++ credit rating from AM Best. While this auto insurance coverage is not available in every state and you must work with an agent to get a quote, Auto-Owners does offer affordable rates for seniors with a number of discounts available to advantage of, such as its low mileage discount.
Best for military members
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA's auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circ*mstances, such as for active-duty members, customers have access to an intuitive mobile app.
Terms apply.
Pros
- Lowest average premium for minimum coverage
- Highest customer satisfaction ranking
- Superior discounts for military members
Cons
- Only available to military members, veterans and their immediate family members
USAA is one of the top choices for seniors who have served in the military (or their immediate family members). Not only has the insurance company consistently earned high marks for customer satisfaction and financial strength, but it also offers low premiums for drivers of all ages. It offers a variety of discounts for people of all ages, including seniors, and a number of other types of insurance products to bundle and save more.
FAQs
- Is car insurance higher for seniors?
- At what age do car insurance rates increase?
- Why are seniors considered a high-risk driver?
- How can I lower my car insurance?
Is car insurance higher for seniors?
Those in their 50s and 60s pay the least for car insurance, according to data from Bankrate. While the average 40-year-old male pays an average of $2,020 per year for full coverage car insurance per year, the average 50-year-old pays $1,885, and the average 60-year-old pays $1,832. However, car insurance rates begin to increase once you hit your 70s.
At what age do car insurance rates increase?
Car insurance rates increase for 70-year-olds, who pay an average of $2,001 per year. That's about $170 more than the typical 60-year-old pays.
Why are seniors considered a high-risk driver?
Seniors are considered high-risk drivers because they pose a greater risk of being injured or killed in a car accident. According to the Center For Disease Control and Prevention (CDC), this is because of age-related changes in vision, hearing, cognition and physical functioning, as well as the fact that some medications might affect some elders' driving abilities.
Other types of high-risk drivers include those with less driving experience, poor credit, a previous at-fault accident, a history of traffic violations, a DUI or a large number of points on their license.
How can seniors save money on car insurance?
Seniors can save money on car insurance by taking a defensive driving class. These courses are often offered online and can be taken through the National Safety Council, AARP, and AAA.
Shopping around can also ensure you're getting the best deal. To start, get quotes from several insurance companies and compare the quotes, paying attention to the amount of coverage and the types of coverage included.
Raising your credit score is another way to lower the amount you'll pay for coverage. In many states, car insurance companies consider your credit score in deciding how much you'll pay. The higher your credit score, the lower your premium.
Bundling your homeowners insurance or renters insurance with your auto insurance policy can help bring down your insurance costs. Many insurance companies offer discounts for bundling policies.
Lastly, consider raising your deductible, or the amount you'll be responsible for paying before your insurance kicks in. As deductibles go up, premiums tend to go down. However, you'll want to make sure that your deductible is reasonable for you, as you'll need to be able to cover that amount if something happens.
Bottom line
There are several car insurance options for seniors that are both affordable and high-quality. Shopping around for coverage, bundling your policies and raising your deductible can also help to make car insurance more affordable for elder drivers.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurancereview is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insuranceproducts.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best car insurance for seniors.
Our methodology
When determining the best car insurance companies for seniors, CNBC Select looked at several car insurance companies, focusing on those that are available in a wide variety of states.
When narrowing down the best car insurance companies for seniors, we focused on average cost data from Bankrate, customer satisfaction data from J.D. Power and financial strength ratings from AM Best. We also considered the number of states where coverage is available, along with the number of discounts available.
Average annual premium data is based on a 70-year-old driver with a clean driving record, good credit, and a 2020 Toyota Camry driven 12,000 miles annually with the following coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
After reviewing the features and costs above, we sorted our recommendations by the best overall, best for customer satisfaction, best for military members, and best for low-mileage drivers.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
