Find Your Perfect Policy: 866-843-5386
The best rates, plans, and discounts for older Americans
Full Coverage Averages
• Annual Premium: $1,520
• Monthly Premium: $127
Read our review of The Hartford (AARP).
✓ Specifically caters to seniors
✓ Extra benefits like new-car replacement for AARP members
X Doesn’t insure Teslas
Full Coverage Averages
• Annual Premium: $1,249
• Monthly Premium: $104
Read our USAA review.
✓ Low rates and stellar customer service
✓ Benefits extend to children and grandchildren
X Only for military members, veterans, and their families
Full Coverage Averages
• Annual Premium: $1,460
• Monthly Premium: $122
Read our Nationwide review.
✓ Pay-per-mile option
✓ Gap coverage and new-car replacement
X Higher premium after at-fault an accident or DUI
Is it challenging to lock down low car insurance rates? The cost of auto insurance tends to creep up when drivers enter their 60s and 70s, meaning the best insurance company won’t necessarily be the one they had in their 40s or 50s. We looked through thousands of insurers and narrowed down the best three auto insurers with different price ranges, senior discounts, and coverages for drivers with low mileage. Besides inexpensive premiums, we reviewed multiple factors, including senior-specific benefits, customer service, at-fault coverage, and accident forgiveness.
We believe that drivers of all ages should have access to reliable auto insurance plans at reasonable prices. That’s why we’ve scoured the internet to aid you in your search. Keep reading to discover the best auto insurer for seniors.
GEICO ($1,334 annually) and USAA ($1,249 annually) typically have the cheapest auto insurance rates for seniors. Depending on your location and driving habits, you may save money by purchasing a pay-per-mile plan with Nationwide or Allstate. Certain regional providers, like NJM, Erie, and Farm Bureau, also tend to have good rates for seniors.
Best Senior Auto Insurance for AARP Perks: AARP
Best Auto Insurance for Military Seniors and Veterans: USAA
Best Senior Auto Insurance for Low-Mileage Drivers: Nationwide
Best Auto Insurance for Seniors With an At-Fault Accident: State Farm
Best Cheap Auto Insurance for Seniors: GEICO
Company | Average annual rate for senior drivers | Criteria for senior-specific discount | Retirement and investments plans | J.D. Power claims satisfaction score (industry average is 873 out of 1,000)1 |
---|---|---|---|---|
The Hartford (AARP) | $1,520 | Take a defensive driver course | Yes | 869 |
USAA | $1,249 | No discount (but low rates regardless) | Yes | 890 |
Nationwide | $1,460 | Age 55 or older, 3 years accident-free, and take a defensive driver course | Yes | 868 |
State Farm | $1,544 | Age 55 or older, accident free, and take a defensive driver course (availability and criteria vary by state) | Yes | 882 |
GEICO | $1,334 | Age 50 or 55 or older (depending on state), accident free, and take a defensive driver course (availability and criteria vary by state) | No | 874 |
The American Association for Retired Persons (AARP) has been serving Americans over the age of 50 for more than half a century. On top of that, AARP has offered car insurance through its partnership with The Hartford since 1984. The annual average auto insurance cost of $1,520 is significantly cheaper than the national average of $2,071.
Although you don’t need to be an AARP member to sign up for auto insurance with The Hartford, its unique senior program is exclusive to AARP members. We like the AARP auto insurance program with The Hartford for its wide range of coverage options, discounts, benefits, and customer support services for seniors specifically.
When you buy a policy from The Hartford, you gain access to a robust set of AARP membership benefits on top of your auto insurance. From European rail tour deals and AARP travel guides to hotel deals and a variety of health and wellness benefits, your membership provides far more than just auto insurance. For example, your membership comes with a safe buying program that provides you with recommendations on the newest car safety features. Your membership opens you up to the following:
Not only does the AARP have dedicated customer service representatives available 24/7, but it also has a number of safety nets in case of an emergency. For example, members can benefit from lifetime car repair assurance. If you use one of AARP’s more than 1,600 auto repair shops, AARP will pay for any unsuccessful repairs.
Another great support service is RecoverCare Essential Services Coverage, which provides you with a $2,500 reimbursement for household services if you’re hurt in an accident. That money can go to tasks like cleaning, lawn maintenance, snow removal, and household repairs.
TIP:
Speak to an agent about AARP’s umbrella policies. With an umbrella policy, you’ll gain extra coverage and bundling options to fit your needs.
The AARP’s auto insurance program with The Hartford may not be the cheapest provider on our list, but it has one of the longest lists of discounts available to seniors. You can lower your auto insurance costs with the following discounts:
USAA offers the cheapest rates among the 10 largest insurance providers.2 Membership is exclusive to military personnel, veterans, and their families. If you qualify, you can get some of the cheapest auto insurance rates in the country, exclusive USAA benefits, and financial support for investments and retirement. Additionally, once you sign up for membership, your children and grandchildren can become members and take advantage of USAA’s insurance offerings and financial services.
Similar to AARP, the USAA offers several membership benefits to go along with your car insurance. These benefits become available to you as soon as you become a member, but the specific offerings will differ from state to state. Some of the most notable USAA membership perks include the following:
USAA has a healthy list of discounts that save the average driver $725 per year — and those discounts extend to your spouse, children, stepchildren, and grandchildren as well. That said, USAA’s discounts will vary depending on the state you’re in, so be sure to speak to an agent to find out which savings are available to you and your family. Here are some examples:
Gig work — such as driving for Uber, Lyft, DoorDash, or a similar service — attracts a number of seniors looking for flexible work to supplement retirement income. According to market research, more than half of rideshare drivers are 50 or older, and nearly a quarter are 60 or older.3
When you drive for a rideshare company, your personal policy does not apply. The rideshare company covers you only after you’ve matched with a passenger, leaving a gap in coverage when the app is on but you’re waiting to match with a ride. A rideshare endorsement extends your policy during this time, ensuring you’re protected while working.
USAA offers rideshare coverage in every state except Hawaii, North Carolina, Michigan, Montana, New Mexico, New York, South Carolina, and Virginia.
Nationwide is one of the few major insurers that offers a pay-per-mile program, which can help seniors who are driving less after retirement save money. The company also offers extra coverages and perks you won’t find everywhere.
Along with teens, drivers age 65 and older drive the least, according to the U.S. Department of Transportation. On average, seniors log 7,646 miles annually, compared to the national average of 13,476 miles.4
Nationwide’s mileage-based plan, called SmartMiles, can help you save money if you drive 8,000 miles or less annually. You’ll pay a monthly base rate, plus a per-mile rate depending on how much you drive. If you take a road trip, your daily mileage is capped at 250. Nationwide offers this plan in every state except Alaska, Hawaii, Louisiana, North Carolina, New York, and Oklahoma.
Seniors who drive more can still save with Nationwide’s usage-based program, called SmartRide, which rewards you for safe driving behaviors related to braking, acceleration, nighttime driving, and number of miles driven. You’ll get 10 percent off just for enrolling and then up to 40 percent off within 80 days depending on your driving. It’s a good option, considering many other providers cap the discount at 30 percent and make you wait until your next policy renewal (usually six months) to earn the safe driving discount.
Whether it’s retiring, buying a new house or car, moving, or something else, as people age, their insurance needs often change. As a free benefit, Nationwide offers an annual insurance assessment to help you understand your policy and make any necessary changes. A Nationwide professional will talk with you about:
Nationwide offers a couple coverage options that will benefit new-car owners in particular:
DID YOU KNOW?
According to research from the Federal Reserve, the average age of a new-car buyer is 53, and older Americans make up a greater proportion of new-car buyers than they did in the early 2000s.5
Finally, Nationwide customers can reduce their deductibles by $100 for every year of safe driving, up to $500 total.
Seniors are statistically less likely to get into an accident, but it can still happen, even to the safest of drivers. State Farm’s rates go up less than competitors’ for drivers with an at-fault accident, and the company also offers some coverage options that are nice to have.
For seniors with an at-fault accident, State Farm is a good option. In general, premiums increase by about 50 percent after an accident, but State Farm’s go up by only 12 to 20 percent.
State Farm has a simple and easy-to-use mobile app, which recently received recognition as the best insurance mobile app and bank mobile app in The Webby Awards and Mobile Web Award.6
With the app, you can manage your insurance and banking needs, file claims, ask for roadside assistance, access your ID cards, speak with agents, and more. Whether you’ve been using mobile apps to manage your insurance for years or are a first-time app user, State Farm’s platform will be intuitive and seamless for anyone.
For many seniors, retirement brings extra time to pursue travel and leisure. RVs and motor homes are great ways to travel around the country, and you can insure them with State Farm. The company offers the following coverages for RVs and motor homes:
You can also purchase a personal articles policy, which provides extra protection for items in your RV like jewelry, cameras, bicycles, fishing equipment, and golf clubs.
GEICO is the most widely available company on our list. It’s also consistently one of the most affordable companies on the market, and its policies for seniors are no exception. Additionally, GEICO is unique in offering a special plan for drivers over age 50 that guarantees coverage.
For customers who prefer to stick with the same insurance company over time rather than shopping around at every renewal, GEICO is a good option. The company offers a contract option, called Prime Time, that guarantees your policy won’t be canceled, even if you’re at fault for an accident or get multiple tickets. Note that while the contract guarantees coverage, your rates may still rise as a result of violations and accidents.
You can sign up for the Prime Time contract when you buy a policy with GEICO or at your next renewal. To qualify, you must meet the following requirements:
GEICO offers the Prime Time contract in the following states: Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, and Wisconsin.
GEICO keeps premiums low by offering more discounts than many competitors, including several that seniors in particular may benefit from:
With GEICO, you can either earn accident forgiveness or purchase it (many providers offer only one or the other). With accident forgiveness, your premium won’t go up even if you or someone on your policy causes a crash, and you’ll keep any good driver discounts.
If you remain accident-free for five years, you’ll earn the benefit for free. You can also purchase the benefit at the time you buy the policy or upon renewal.
On average, insurance rates begin to increase for seniors at age 70. Seniors over the age of 85 pay the highest rates, at $2,416 annually on average.
Both GEICO and USAA offer some of the cheapest rates for seniors with poor credit. Prices at both GEICO and USAA come in at just under $2,000 per year for drivers with a poor credit score, which is cheaper than the national average of $2,300.
After one at-fault accident, both USAA and State Farm have the lowest insurance rate increases, with an annual premium increase of about $300. You can expect a 50 percent average increase if you’re at fault and a 10 percent increase if you’re not at fault in an accident, but the exact amount will depend on your state and local laws.
After one at-fault accident, both USAA and State Farm have the lowest insurance rate increases, at around $300 annually. You can expect a 10 percent increase on average if you’re not at fault in an accident, but this increase will depend on your state and local laws.
We used the following approach to find the best auto insurance companies for seniors:
Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).
https://www.jdpower.com/business/press-releases/2023-us-auto-insurance-study
Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2023).
https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings
Who are rideshare drivers: A demographic breakdown of rideshare drivers in the U.S. Gridwise. (2023).
https://gridwise.io/blog/b2b/who-are-rideshare-drivers-a-demographic-breakdown-of-rideshare-drivers-in-the-u-s/
Average Annual Miles per Driver by Age Group. U.S. Department of Transportation Federal Highway Administration. (2022, May 31).
https://www.fhwa.dot.gov/ohim/onh00/bar8.htm
DEMOGRAPHICS OF CAR BUYERS. Hedges & Company. (2023).
https://hedgescompany.com/blog/2019/01/new-car-buyer-demographics-2019/
State Farm Mobile App – 2021. The Weeby Awards. (2021).
https://winners.webbyawards.com/2021/apps-and-software/mobile-ott-app-features/best-user-interface/182895/state-farm-mobile-app–2021