Best car insurance for seniors April 2024 (2024)

Finding a car insurance company that matches your needs at a budget-friendly premium is the ideal scenario. However, finding the perfect one can feel like a challenge. We’ve rounded up the best car insurance for seniors to help you find a company that delivers everything you’d want in a policy.

Why do seniors need car insurance?

• It’s legally required: Most states require all drivers to carry the minimum amount of car insurance coverage. Driving without insurance can result in rate increases, legal fines and license suspensions.
• It can provide financial protection: Car insurance can help pay for bodily injury and property damage liability expenses. It can also help cover your medical bills and repair or replace your car if it’s damaged in an accident or stolen.
• It can cover emergency roadside services: Seniors can get coverage for vital roadside assistance services like towing, changing a tire, jump starting a battery, delivering gas or helping with a lockout.

What is car insurance for seniors?

Car insurance for seniors is typically for drivers ages 50 and above. It can provide normal coverage for bodily injury liability, property damage liability, medical expenses, comprehensive and collision.

Senior drivers face different risks. For example, they may:

• Commute less after retirement
• Be more likely to experience injuries after an accident
• Have slower reaction times, impaired vision or other medical conditions
• Have more assets to protect in the event of an at-fault accident
• Live on a fixed monthly income

The best car insurance for them will provide coverage valuable for those risks at an affordable premium.

What is different about car insurance for seniors?

The primary difference between car insurance for seniors versus car insurance for young and middle-age drivers is its costs. Drivers in their 50s and 60s may see lower premiums than younger drivers due to their experience and safer driving practices.

In contrast, senior drivers in their 70s and 80s may see higher rates than those in their 60s, likely due to declining physical and cognitive functions. This can lead to a higher chance of being involved in an accident and having a claim.

Additionally, older drivers are more susceptible to severe injuries after an accident, which may mean a higher claim payout for medical coverage. So, insurance companies often increase rates to account for those risks.

How much is car insurance for seniors?

The average annual car insurance rate among seniors was $2,175, according to our research. This is the average for drivers who are 60, 70 and 80 years old. USAA was the cheapest insurance company at $1,554 per year, and Allstate was the most expensive, averaging $3,048. Keep in mind that your insurance costs will differ based on location, driving history, coverages and other factors.

What factors affect senior car insurance rates?

Car insurance rates for seniors increase or decrease for many of the same reasons that general car insurance rates do. Some of those reasons include:

• Type of car: Newer cars tend to be more expensive than older cars to insure because they cost more to repair and replace.
• Driving history: Drivers with a history of speeding tickets and insurance claims will typically pay higher rates than those with clean driving records.
• Location: Areas with hazardous weather, lots of traffic, or high crime will tend to increase insurance premiums.
• Age: The average cost of car insurance tends to decrease for drivers as they get older.
• How much you drive: Insurers tend to increase your rates the more miles you drive.
• Your insurer: The rates you’re quoted can change significantly depending on the insurer.
• Coverage amounts: The higher the coverage amounts you select, the higher your premium will go.
• Deductible amount: Lowering or raising your deductible (the set fee you pay before an insurer covers your claim) can lower or raise your rate.

Different types of car insurance for seniors

Insurance can help protect your assets by lowering your financial burden after a car-related incident. If you’re a senior, the following coverages may be valuable, some of which may be legally required in your state:

• Bodily injury liability coverage: Covers the other party’s medical expenses if you’re at-fault in an accident
• Property damage liability coverage: Pays for the other party’s damaged property like their car, fence or mailbox if you’re at-fault in a car accident
• Uninsured/underinsured motorist coverage: Covers your medical expenses and vehicle repairs if the at-fault party doesn’t have any or sufficient liability insurance
• Personal injury protection (PIP) coverage: Pays for your and your passenger’s medical expenses, lost wages, replacement services and other qualifying costs after a vehicle accident, regardless of fault
• Medical payments (MedPay) coverage: Pays for your and your passenger’s medical expenses, regardless of fault
• Comprehensive coverage: Covers your vehicle’s repairs or replacement after a noncollision incident (e.g., theft, vandalism and weather damage)
• Collision coverage: Covers your car’s repairs or replacement after a crash with another car or with a stationary object
• Roadside assistance coverage: Offers towing, battery jump start, fuel delivery and other services if you’re stuck on the road
• Rental car reimbursem*nt coverage: Pays for a rental car while your vehicle is in the shop for repairs after a covered claim
• Gap coverage: Covers the outstanding balance on your loan or lease if the vehicle’s value is less than what you owe on it

Are car insurance rates lower for seniors?

Seniors who experience lower rates generally have longer driving histories and practice safe driving habits. Additionally, many retirees and seniors drive less frequently, lowering their risk of an accident.

On the other hand, those in their 70s and 80s will likely see increased rates. Age-related conditions like reduced vision or slower reaction times impair driving abilities and increase the likelihood of a claim, making drivers 70 and older a higher risk to insurance companies.

Can I add a senior driver to my insurance?

It’s possible to add a senior to your auto policy, depending on the situation, the insurance company’s eligibility rules and your state’s laws. In general, if the individual lives with you or drives your vehicle regularly, you may be able to add them to your policy.

Remember that adding a senior driver may impact your premium due to their age, driving record and claims history. Contact your insurer or agent for more information.

How to choose the best car insurance for seniors

The best car insurance for seniors will fit your budget, have the necessary coverage and offer a satisfactory experience.

Firstly, the best car insurance will fit your budget. A good way to find affordable car insurance is comparing similar quotes from multiple insurers. Consider companies that offer discounts for seniors to maximize your savings.

Secondly, the best car insurance will have the coverage you need. For example, if you are a low-mileage driver, an insurer with a pay-per-mile policy may help you save money. Or, if your vehicle is modified to accommodate physical disabilities, having specific coverage for custom parts and equipment can help repair or replace them after a covered accident.

Lastly, the best car insurance will be from a reputable company with good customer service, claims processing and financial strength ratings.

Are there government auto insurance discounts for seniors?

Yes. Certain states require insurers in the state to provide you with a driving discount if you can pass a safe driving course. For example, Florida drivers aged 55 and older can get an auto insurance discount if they complete a mature driver discount driving course.

Methodology

To find the best car insurance companies for seniors, we started by examining 158 leading insurers and then narrowed it down to the top-rated 12 companies.

For each insurer, we analyzed 10 crucial categories, leveraging rate data from Quadrant Information Services, survey data from CRASH Network, complaint data from the National Association of Insurance Commissioners (NAIC) and study data from customer-research firm J.D. Power.

To identify the winning companies, we worked with more than 270 data points across the 12 companies and ten categories. The following sections describe the category we scored and the weight we gave that category in our scoring model.

Average annual rates for seniors (25%)

For the average annual rates, we used data from Quadrant Information Services. With access to insurance rates across the country, Quadrant provided us average auto insurance rates for senior drivers who are 60 years old, 70 years old and 80 years old. Our sample policy carried:

• Bodily injury coverage of $100,000 per person, $300,000 per accident
• Property damage coverage of $100,000 per accident
• Uninsured motorist coverage of $100,000 per person, $300,000 per accident
• Comprehensive coverage with a $500 deductible
• Collision coverage with a $500 deductible

Accident forgiveness (17.5%)

Being involved in an accident, especially when you are at fault, can significantly impact your rates. Some insurance companies offer accident forgiveness — either as an optional coverage or as an automatic benefit for qualifying drivers — to help drivers avoid a premium increase after their first at-fault accident. For this category, we looked to see if this coverage is available with each insurer.

State availability (10%)

Not all insurance companies operate in all states. Some policyholders prefer working with national insurers, while others prefer working with ones that only work in their regions. Having access to adequate coverage is an important first step when analyzing insurance companies. For this category, we researched how many states each insurer operates in. Companies that offered policies in 15 states or fewer received a scoring penalty.

J.D. Power score (10%)

We looked at the 2023 U.S. Auto Insurance Study for overall customer satisfaction. J.D. Power scores auto insurance providers based on five factors that are a key part of the policyholder experience: billing process and policy information, claims, interaction, policy offerings and price. This study is broken into 11 regions, so we took the average of all available scores for each insurance company. We included J.D. Power’s ratings in our scoring because they help you gauge what an insurer’s typical policyholder experience is like.

CRASH Network grade (9%)

CRASH Network publishes the “Insurer Report Card” each year, which assigns a grade to insurance companies based on responses from body shops around the country. For its 2023 survey, CRASH Network collected its data from over 1,000 collision repair body shops from all 50 states. The shops were asked one question: “How well does this insurer’s claims handling policies, attitude and payment practices ensure quality repairs and customer service for motorists?” The Insurer Report Card’s grades range from A+ to F. Our scoring method uses a one-point scale to reflect this — with A+ receiving a score of one and D, D- and F receiving a score of zero.

New car replacement (7.5%)

Cars quickly depreciate in value. Standard auto insurance policies cover their actual cash value (ACV), meaning their depreciation for things like wear and tear and mileage are considered when calculating claim payouts. Some insurance companies offer new car replacement coverage, so if your car is a total loss, it will be replaced with a newer version of the same make and model. This coverage may be subject to age limits (e.g., your car may not be eligible if it’s three years old). For this category, we looked to see if new car replacement coverage is available with each insurer.

Vanishing deductible (7%)

Some insurance companies offer vanishing deductibles, or disappearing or diminishing deductibles, for comprehensive and collision coverage. For each year you go without a claim, your deductible will decrease by a certain dollar amount or percentage, as dictated by your policy. In some cases, you may be able to reach a $0 deductible. After you have a claim, your deductible resets. For this category, we looked to see if vanishing deductibles are available with each insurer.

Usage-based insurance (UBI) or pay-per-mile options (5%)

If you want more personalized rates based on your driving behavior or if you don’t drive often, a usage-based insurance (UBI) or pay-per-mile insurance policy may be a good option for you. For this category, we looked to see which insurers offer these types of programs. We assigned a 2.5% weight for UBI programs and 2.5% for pay-per-mile programs.

Limited membership (5%)

Ensuring our readers have access to our winning companies is an important part of our process. Companies that have limited availability, such as having membership requirements or only operating in a handful of states, scored lower than companies that are more readily accessible to the general public.

NAIC complaint index (3%)

The National Association of Insurance Commissioners (NAIC) calculates an index for insurance companies based on the company’s share of premiums and complaints filed with the NAIC. An index of 1.00 indicates the insurer received the expected number of complaints for a company of its size. An index below 1.00 means the company received fewer complaints than expected for a company of its size and vice versa. We used the NAIC complaint index scores from 2022.

SR-22 (1%)

If you have a poor driving record or are caught driving without insurance, you may be required to file an SR-22 form, also known as a certificate of financial responsibility, with your state. Not all insurance companies will insure drivers who need SR-22s. For this category, we looked to see which insurers will offer coverage.

What didn’t make the cut

Of the 12 auto insurance companies we analyzed for our final rankings, four did not win a category: Westfield, Farmers, Allstate and State Farm. Which categories they received low scores in varied between each insurer, but some examples include average annual rates, state availability, CRASH Network grade and J.D. Power scores for overall customer satisfaction. For example, Farmers and Allstate had above-average rates, which made up 25% of our scoring model.

Frequently asked questions (FAQs)