Best car insurance for seniors

USAA and State Farm have the cheapest rates for drivers over the age of 65, but many companies offer unique benefits for seniors.

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Rachael Brennan

Rachael Brennan

Property and Casualty Insurance Expert

Rachael Brennan is a senior insurance editor at Policygenius, specializing in auto insurance. She worked for 21st Century Insurance, BlueCross BlueShield Massachusetts, and HealthPass New York. She also spent two years working as a content expert for dozens of auto insurance websites through 360Quote LLC.

Updated November 24, 2021|3 min read

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While not every senior driver has health issues that can impact their driving, certain problems, like slowed reaction times and vision loss, are more common among older populations. That’s one of the reasons car insurance rates can start to rise after you turn 60 or 65.

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But there are discounts and benefits that are only available to seniors, and some companies offer lower rates to older drivers than others, which means that if you’re an older driver, shopping around for a new policy could save you hundreds of dollars each year. 

Best car insurance companies for seniors

Car insurance rates are determined by a number of factors, including your age, ZIP code, and the type of car you drive. Depending on which insurance company they choose and the laws in their state, most drivers can expect to see their insurance rates begin to increase sometime between age 60 and 65.

The chart below shows the average rates by age for the 10 biggest insurance companies in the country:

Company4555606570
USAA$982$936$932$955$1,021
State Farm$1,155$1,093$1,068$1,064$1,107
Erie$1,047$996$1,022$1,071$1,138
GEICO$1,175$1,084$1,083$1,083$1,150
American Family$1,330$1,267$1,263$1,292$1,377
Nationwide$1,405$1,284$1,258$1,298$1,394
Travelers$1,415$1,285$1,295$1,355$1,451
Progressive$1,691$1,506$1,507$1,567$1,686
Farmers$1,902$1,710$1,674$1,837$1,983
Allstate$1,961$1,839$1,835$1,914$1,938

According to our data, USAA and State Farm have the lowest rates for drivers aged 60 and older. USAA has the lowest rates for 65-year-old drivers at $955 per year. State Farm has the second lowest rates for 65-year-old drivers at $1,064 per year.

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Which car insurance companies offer the best benefits for seniors?

Some insurance companies offer special benefits to drivers who are 50 or older: 

  • GEICO offers a guaranteed renewal for drivers over 50 who haven’t had any accidents or moving violations in the last three years.

  • Nationwide has a defensive driver discount for drivers over the age of 55 who have no accidents or moving violations in the last three years and complete a state approved accident prevention course.

  • American Family offers a generational discount, so if you have adult children who have an American Family policy, signing up could earn you a discount.

  • Erie offers an option called Rate Lock, which freezes your rate unless you make a change to your policy, so drivers won’t see a change in their premium due to aging, or even if you file a claim. 

Each insurance company has their own unique benefits, so the best way to make sure you are getting the right policy for you is to compare quotes with Policygenius.

Senior car insurance discounts

You can reduce your premiums even further with discounts offered by your carrier, such as the discounts listed below.

1. Take a driver’s education course.

Driver’s education classes aren’t just for teen drivers. Seniors can also get a discount on their car insurance by completing eligible driving classes. These classes are offered by organizations like AAA, AARP, and the National Safety Council, or even by your state, and may be offered in person or online. Confirm with your insurer that a given course qualifies for a discount. Such classes may include:

  • Defensive driving course

  • Mature driver training course

  • Occupational therapy classes, if a medical condition or disability makes it difficult for you to drive.

You may have to be 55 or older to partake, and after a certain age, your state may actually require you to periodically take refresher courses in order to keep your driver’s license.

2. Add safety and security features to your car.

Some drivers may want to add safety features to their current car while others might prefer to buy a new vehicle with safety features that are already installed. Some newer model cars come with built-in safety features, like rearview backup cameras and lane departure warning systems, that can make it safer to drive, no matter how old you are.

Some common safety features are:

  • Airbags

  • Anti-lock brakes

  • Lane departure warning systems

  • Automatic pre-collision braking feature

  • Advanced adaptive cruise control

  • Rearview backup camera

  • Car tracking and emergency services upgrades like OnStar

3. Sign up for a usage-based discount

Insurance companies offer a usage-based discount to drivers who allow them to track your driving behavior to give you the most accurate possible rates. That means the insurance company will either have a device installed in your car or, more likely, require you to download an app for your smartphone that tracks you while driving. 

These devices and apps record your speed, mileage, braking frequency, and the time of day you drive, among other measures of accident risk, and award savings for safe driving habits.

4. Look into organization discounts

Although eligibility depends on your insurer, you may be offered discounts, including:

  • Alumni discounts: Even if you graduated half a century ago, you may still be eligible for a discount just for having gone to certain universities.

  • Fraternity and sorority discounts: The same is true for having belonged to certain fraternities and sororities.

  • Military discounts: Most insurers offer car insurance discounts to veterans and active duty military.

  • Interest group-based discounts: Belonging to the American Automobile Association (AAA) or the AARP may help you earn a discount.

Frequently Asked Questions

When should seniors stop driving?

While there is no specific age when people should stop driving, seniors who are having medical issues that can impair driving ability (dementia, vision loss, etc.) should start looking for alternative transportation.

Are there states that offer discounts for senior drivers?

Massachusetts requires insurance companies to offer a discount to people aged 65 and older. However, because your rates start going back up in your late 60s, you might not notice a huge difference in your premiums. Also, several states have laws mandating a discount for safe-driving classes for seniors.

Should seniors purchase usage-based insurance?

Seniors who don’t spend much time behind the wheel could benefit from usage-based coverage, also called pay-as-you-go insurance. The insurance company tracks your driving behavior and rates you accordingly, so careful drivers or any age could potentially benefit from usage-based coverage.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

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