6 Best Car Insurance for Seniors

David Bolton

/

October 6, 2020

Retirement Wealth
6 Best Car Insurance for Seniors | Retire Fearless

As a senior, finding the best car insurance for you is all about finding excellent customer service at the right price. So if you're aged 50 or older, the time has come for you to enjoy the best car insurance rates that are a true reflection of your good driving history and many years of experience on the road.

Even though your life will probably get more costly as you get older, your life as a senior will get sweeter in a lot of ways. When it comes to your auto insurance, you should be able to get the best car insurance rates that reflect your maturity and experience as a senior driver and this means getting better pricing and senior discounts. While your car insurance rates may drop when you're in your 50s, you may notice that the costs of auto insurance will increase in your 60s and 70s. It may not be as high as it would be for a teenager but it's relatively higher than when you were in your 30s and 40s. And because you're probably retired and on a fixed income, this is certainly the right time to look for the best car insurance for seniors.

Fortunately for you, there are a lot of insurance companies that specialize in car insurance and offer discounts that make auto insurance more affordable to seniors. You should, therefore, take a look at the best car insurance for seniors and tips on how to save on the cost of auto insurance for retirees now that you're on a fixed income.

With so many insurance companies out there offering auto insurance for seniors, how can you determine the best car insurance for you? We've done a thorough research and compile a useful list of the best car insurance for seniors. Among other things, we will look at the coverage offered by these insurance companies; evaluate their discounts as well as various incentives that are beneficial to seniors.

But before jumping straight into the best car insurance for seniors, there are various things that we need to highlight as they're of great importance when looking for the best auto insurance for seniors.

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So Why Do You Need to Find an Auto Policy for Senior Drivers?

Here are the reasons why you should find an auto insurance policy for senior drivers.

  • You've just turned 50 and you're now considered a senior, so you can enjoy the numerous benefits that come with that age including discounts on auto insurance.
  • You may have not filed for a claim in the last two years but your current auto insurance policy is still high
  • Your current auto insurance policy doesn't offer discounts for seniors
  • The insurance company that you're affiliated with doesn't have a local agent to regularly review your auto insurance needs 

Factors that Affect Auto Insurance Rates for Seniors

Several crucial factors can affect the rates of your auto insurance as a senior and even how much insurance you're expected to buy. Let's take a brief look at these factors.

Age and Health - Age and health are among the primary factors that auto insurance companies consider when determining the appropriate car insurance rate for you. While health may be used to determine how fast you can react to situations on the road, age is generally used to measure your driving experience and accident risk.

Gender - Gender also plays a crucial role in auto insurance costs for seniors. Generally, men will pay nearly 12% more than women.

The type of car that you drive - Switching from a standard car to a high-end car will mean that you pay more insurance premiums. For example, driving a Mercedes Benz will cost more than driving a standard family car such as Ford Focus.

How often you drive - As a senior, you will most likely take a laid back approach when it comes to being on the road. But if you're planning to spend more time on the road, then your insurance rate will be higher. So if you're still paying the same premium as when you were driving to work daily, you probably have the worst car insurance deal now that you're retired. Remember, driving to work daily comes with several risks that are greatly reduced when you're retired and driving less frequently.

Car Insurance Rates Based on Age

Although many states stipulate that drivers aged 55 or older should be given car insurance discounts for their driving experiences, good driving, and/or for taking approved driving courses, you're probably still wondering why auto insurance often costs more. Well, most insurance companies categorize older senior drivers as being more accident-prone than their middle-aged counterparts. This is because they often have age-related issues revolving around vision and hearing issues, slower reflexes as well as other health conditions that may affect their driving.

Similarly, insurance companies tend to base their higher rates for senior drivers on the fact that many seniors will most likely suffer more injuries and fatalities than their younger counterparts in case of an accident and increases their claim costs. As such, auto insurance for seniors tends to be more expensive and the premiums are likely to increase as you get older.

At this point, you're probably wondering whether your auto insurance premiums will increase just because you become a senior. And what happens if you do not have any bad history of accidents or bad driving behaviors? Well, this may depend on the insurance company you choose, but the number of auto insurance premiums that you choose will be, to some extent, be determined by the entire age group that you belong to.

Here's what to expect based on your age.

Car Insurance for 50-year-olds

Auto insurance for 50-year-olds tends to be a lot cheaper than it is for both older drivers and younger drivers. The idea here is that drivers in their 50s are among the safest since they've attained many years of experience and generally have proper hearing and vision as well as quick reflexes based on their good health.

Car Insurance for 60-year-olds

Unless you've become prone to accidents, you are more likely to pay a lot less for your car insurance in your early 60s. However, many insurance companies are likely to increase their insurance premium rates as you reach 65. So as you reach 65, it would be a lot better to start shopping for the best auto insurance for seniors and a better deal.

Car Insurance for 70-year-olds

According to statistics from the National Transportation and Safety Bureau (NTSB), drivers aged 70 or older generally experience more accidents and fatalities than their younger counterparts. And because these accidents and fatalities often lead to more claims, you're more likely to pay higher auto insurance rates in your 70s. The idea here is that your ability as a driver will significantly degrade in your 70s.

Car Insurance for 80-year-olds

According to the American Automobile Association (AAA), drivers aged 80 or older are 17 times more likely to get involved in accidents than drivers aged between 25 and 64. This is because of the fragility that naturally comes when a person is in the eighth decade of life. As such auto insurance will get costly, so it's essential to shop around for the best auto insurance for seniors especially now that you won't be driving that regularly.

Crucial Tips of Saving on Auto Insurance for Seniors

As a senior, your auto insurance rates will drop in your 50s but will gradually increase as you hit your mid-60s and 70s. This means that you have to look for tips on how to save on your auto insurance and here are the most crucial ones.

Take Approved Driving Class

While most states mandate that you should get auto car insurance as you attain the age of 55, taking up driving classes to brush up on your driving skills can be a great way of saving on your auto insurance. While many classes are offered online by groups such as AARP and AAA, some classes can be offered in person. The best thing to do is to confirm with your state's insurance department to determine which driving classes can make you eligible for discounts.

Generally, these classes are relatively cheap and will cost you not more than $20 in many states. They often cover a lot and you'll be able to learn various things including how your age and medication might affect your driving skills. You'll also learn various ways to help you safely accommodate such changes and how you can deal with various challenging driving situations at that age.

In short, senior driver refresher courses can help you reduce your car insurance premiums by 5-15%.

Drop a Second Vehicle

When you have retired, chances are that you'll be commuting less and less, so you might not need a second vehicle. The best thing to do is to move to a once vehicle insurance policy so that you can streamline your finances and save some money.

Go for a Cheaper Car

The type of car that you drive will affect your auto insurance premiums, so it's important to consider the type of car that you type of car next time you go car shopping. For example, insurance for a high-end car will cost a lot more than that of a standard family car. Keep in mind that the cheapest cars in terms of insurance are those that do not cost much to replace and repair. They also must be good at protecting the driver and passengers in the event of a crash. Again, most insurers will offer additional discounts for cars equipped with airbags and antilock brakes, so these are some of the features to look at when car shopping. 

Drive Less

It's of great importance to let your insurer know that you're now commuting or driving less than you used to now that you've retired. Depending on your state, your insurance company should adjust the premium rates accordingly based on your mileage. This can be a great way of having your insurance premiums reduced by about 10%.

This is also the best time to consider the pay-per-mile program as it determines your auto insurance premiums partly based on how much you drive your car. This will, of course, involve plugging a device into your car's diagnostic port so that it can record the mileage that you cover. Keep in mind that most insurance companies will categorize 5,000 to 7,000 miles as "low mileage" but other insurers could be even more generous. 

Protect Your Car

While you do not have to be super high-tech to get discounts on your auto insurance for seniors, using anti-theft devices will not only help you avoid losing your car to thieves but it can also give your discounts with many insurance companies. Technological devices such as disabling devices, alarms, and vehicle tracking devices can lead to discounts.

It's, therefore, important that you check with your insurer some of the things that you can do for you to qualify for an auto insurance discount. And even if you do not want to get so much involved with technology, you can keep in mind that having your Vehicle Identification Number onto the windshield can lead to discounts.

Drop Unnecessary Coverage

As a senior car owner who is probably on a fixed income or budget, it's essential to take a closer look at the details of your auto insurance policy. By doing that, you'll realize that there are a few things that you can have removed from the policy. For example, gap insurance can be very unnecessary if you don't have a car loan. Similarly, you may not need coverage for a rental car if your car is in repair, especially now that you no longer commute to work.

Increase Your Deductibles

If you're wondering what a deductible is, it's the amount of money that your insurer subtracts from the cost of a comprehensive or collision claim. Auto insurance policies that have low deductibles are often structured in such a way that you may be required to pay more if there's a claim. There's definitely no problem with this if you can afford to pay the claims. The best thing to do is to opt for a higher deductible while reducing your premiums.

Bundle Your Insurance Policies

Of course, there are still a lot of other insurance policies that you'll have to take even at old age. The best thing to do is to consider bundling your policies as this generally leads to discounts. In simpler terms, most insurers will offer higher discounts if you buy multiple policies from them. So if you have separate home insurance, car, insurance, or even boat insurance, you can consider buying them from a single insurance company and you'll more likely get huge discounts on your policies.

Shop around for the Best Coverage

Insurance companies tend to come up with various auto insurance rates. So as a senior, you may qualify for coverage that wasn't even in existence a year or so ago. As such, it's a good idea to shop around, compare multiple quotes, and ensure that you're getting the best auto insurance deals.

You have to keep in mind that auto insurance premiums vary greatly by company, state, and location. If you've retired and looking to move to a new location, you can consider checking your options in that area and see whether or not they're offering the best deal. Be flexible, get multiple quotes from various insurers, and go for the best rates as well as what works best for you. 

What are the Best Car Insurance for Seniors?

This is probably the part that you've been eagerly waiting for, so without wasting much of your precious time, let's roll on. 

The Hartford/AARP - The Best Overall

For close to four decades, The Hartford has offered what can be termed as the best auto insurance for 40 million AARP members. This insurance company specifically offers auto insurance for seniors who are members of AARP and remains one of the top insurance companies in the country.

While its car insurance policies may not be the most affordable on this list, the Hartford offers auto insurance benefits that are exclusive to senior drivers. For example, you can get the RecoverCare that can be of great help if you're injured in an accident and require help with moving around the house. Such a policy will never be dropped provided that you pay your premiums promptly and have a valid driver's license.

In terms of client satisfaction, Hartford has one of the best ratings in the insurance industry and it remains in a financially strong position, which is essential if you want an auto insurance company that guarantees that your claims will be paid in case of an accident.

Types of Coverage Offered

As the official AARP members auto insurance, Hartford offers auto insurance policies that are similar to other insurance companies but with several additional benefits. These benefits include:

  • Round the clock hotline for claims that can be accessed by phone or online
  • Round the clock roadside assistance
  • RecoverCare that can help you pay for the costs of transportation, cleaning, cooking among other things if you suffer injuries from an accident
  • Lifetime renewability provided that you have a valid driver's license and pay your premiums on time
  • Rate protection is essential in locking your auto insurance premium for an entire year instead of the standard six months.
  • New Car Replacement if your car clocks 15,000 miles or 15 months of purchase
  • Lifetime car repair assurance for your car to be fixed at an approved car repair shop
  • Disappearing Deductible to cover every year that you maintain a clean driving record
  • First-accident Forgiveness - Your first accident will not affect your premium rates
  • Deductible waiver - This is essential when you're not at fault when an accident occurs
  • One deductible for two cars - This is essential in case an event cause damage to your home and car

Discounts Provided by the Hartford for Seniors

The fact that the Hartford's AARP auto insurance policy is tailored for AARP members means that it already comes at much-discounted rates. But even with that, there are some additional discounts offered by the Hartford.

  • 20% discount if you bundle your home, renters, or condo insurance with your auto insurance policy
  • Additional discounts safety features such as blind-spot detection, airbags, and for driving environmentally friendly cars such as electric or hybrid cars through the alternative fuel discount
  • Additional discounts for paying six-month or annual premiums once and in full
  • You can get an additional 3% discount on your premium rates by completing a defensive driving course 

Pros

  • High customer satisfaction rates
  • Offers coverage and discounts that are exclusively tailored for seniors
  • Offers 24/7 claim filing
  • Offers some of the best additional discounts

Cons

  • Do not offer the most affordable rates
  • Only available to AARP members
  • Not available in some states such as New Jersey, Michigan, Massachusetts, and Hawaii

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Geico - The Most Affordable Rates

If you're in the market for an insurance company that offers some of the lowest auto insurance rates, look no further than Geico. As a senior, one of the first things you'll appreciate about Geico's auto insurance policy is the company's Prime Time Contract. This is basically an automatic renewal policy to ensure that you always have your car insured provided that you have a valid driver's license and have a clean driving record in the last three years.

This is one of the leading insurance companies in the country and offers some of the most affordable comprehensive auto insurance policies in the industry.

Types of Coverage Offered

In addition to the normal discounts for seniors, Geico offers the following.

  • Rental reimbursement
  • Rideshare coverage
  • Emergency road service
  • Accident forgiveness
  • Glass coverage

The best of the lot is, however, the Prime Time Contract, which is specifically tailored for seniors. In addition to having a valid driver's license and maintaining Geico as your car insurance provider, you are required not to have any driver aged 25 or below on your car insurance policy. You should also have a clean driving record in the last three years before enrolling for this coverage.

Discounts Provided by Geico for Seniors

It's important to note that Geico does not offer discounts that are specifically tailored for seniors. However, they have a few discounts for seniors such as:

  • Up to 25% discount for newer vehicles that are equipped with various safety features including airbags
  • Up to 25% discounts if you bundle your car insurance with your home insurance
  • Up to 25% driving history discounts for safe drivers
  • 5 to 10% discounts for seniors who have completed defensive driving courses. The percentage will depend on your state.
  • You can receive an additional discount on your car if you're a retired military officer or government employee

Pros

  • It consistently offers one of the cheapest auto insurance rates in the country
  • It is available in all the states
  • Its customer satisfaction rating is one of the best
  • You can get accident forgiveness if you qualify

Cons

  • It exclusively operates online
  • 24/7 claim filing isn't up there with the best
  • Does not cover some high-risk drivers

Metromile - Perfect for Occasional Drivers

In all honesty, most traditional car insurance policies may not make a lot of sense for you as a senior, especially now that you won't be driving that much. Luckily for you, Metromile has a plan that's specifically designed for drivers who drive less than 10,000 miles per year. In other words, Metromile offers a great car insurance deal for seasoned drivers who are in their twilight years and only get to drive occasionally.

Types of Coverage Offered

Even though Metromile offers the same types of coverage that are offered by most car insurance companies, they have a very different payment structure. They do not charge a monthly flat rate as most insurance companies do. Instead, they break their car insurance rates into two parts: a base rate and a per-mile charge that's determined by the miles you cover.

These rates are, of course, determined by normal factors including your credit score, driving history, and age. The company has a Smart Driving app that enables them to track your mileage using a device that's plugged into your vehicle's diagnostic port. So in addition to the base rate premium that you have to pay monthly, your per-mile rate will be determined by the number of miles that you covered each month.

Discounts Provided by Metromile for Seniors

Here are some of the discounts offered by Metromile.

  • Towing coverage and roadside assistance
  • No-deductible glass repair if you choose to buy comprehensive coverage
  • Pet injury protection can offer you up to $1,000 if your pet was also injured in an accident. Keep in mind that this is unavailable in Virginia and Illinois.
  • Rental Reimbursement - Metromile will pay $30 per day for 30 days for you to rent another vehicle if your car ends up in a repair shop after an accident
  • There are also additional benefits that come with using the company's app. For example, it gives you the option of checking your car health report anytime you ask or help you locate your vehicle.
  • More importantly, Metromile will only charge you for the miles that you cover. As such, they do not offer a lot of discounts that are geared toward seniors. But you can get a very good discount on what's known as a multi-car discount but if you can insure more than one car.

Metromile can also cap your daily miles charge at 250 miles throughout the country except for New Jersey, which is 150 miles. This is designed to ensure that you do not pay excessive fees if you occasionally go for long trips.

Pros

  • Offers 24/7 claims service
  • Offers an intuitive software and excellent smartphone app that can help you track your car and vehicle maintenance
  • Offers low premiums based on the miles that you cover
  • Great for occasional drivers
  • It holds an A+ customer satisfaction rating from Better Business Bureau

Cons

  • It's not perfect for long-distance driving
  • It's only available in a few states

USAA - Perfect for Veterans

If you or your partner ever served in the military, it would make a lot of sense to consider getting auto insurance from USAA. In addition to offering some of the lowest rates in the country, it offers one of the best customer satisfaction ratings in the industry. The fact that it's available in all states is a bonus, especially if you're looking to relocate to another location.

Types of Coverage Offered

In addition to being one of the top-rated insurance companies in the country, USAA offers various types of car insurance policies that are tailored to satisfy all your car insurance needs. Some types of coverage offered by USAA include:

  • 24/7 roadside assistance
  • Rideshare coverage for Uber and Lyft drivers
  • Towing coverage
  • Bundling options between car and homeowners' policies
  • Car purchase assistance for new car purchase
  • Accident forgiveness

There are even more perks if you are a member of the USAA. For example, the insurance company gives USAA members flexible payment schedules that fit within their pay schedules. It also gives USAA members the option of having easier access to the company 24/7 both through an intuitive mobile app and the company's website.

Discounts Provided by USAA for Seniors

While USAA is widely known for offering some of the lowest car insurance rates in the industry, the company also offers a couple of great discounts for seniors. They include:

  • Multi-car and multi-policy discounts - This is great for those who have multiple cars or those looking to bundle their car and home policies as a way of saving money.
  • The senior bonus - This is a special type of bonus that's offered for veterans who have been USAA members for at least 4 decades.
  • Defensive driving - You'll receive a discount if you've passed a defensive driver course as it's an indication that you're doing the right thing in terms of reducing your likelihood of getting involved in an accident event at old age.
  • New car discount - This is meant for seniors with cars that have been used for less than three years.
  • Per-mile charge discount - This can be perfect for seniors who drive their cars for a limited number of miles each month. This is also referred to as a low-mileage discount.

This is a great car insurance company for seniors who served in the military. Its military-only approach means that you'll access a wide range of discounts and benefits if you served in the military. This can also be a major downside for many seniors because you have to be an army veteran to qualify for USAA insurance.

So if you're still in the army, you should wait until after you've retired to start using the company's auto insurance. Remember, they'll consider whether or not you've been insured by USAA for the last 40 years for you to enjoy the incredible senior bonus. 

Pros

  • Offers one of the most affordable rates in the country
  • Available in all the 50 states
  • It offers other additional services such as banking
  • It has an excellent customer satisfaction rating

Cons

  • Only available for current and former military officers and their families

State Farm - Best for Senior who Travel Long-Distance

As a senior, you probably have a lot of time and sometimes it makes a lot of sense to travel around the country. So if you're looking for an auto insurance company that can best suit your traveling adventures, State farm might be the best way to go. This insurance company offers the best car rental and travel expenses coverage in the industry. The rental and travel expenses coverage is unique and also affordable for seniors who love going on road trips.

The policy's rental car reimbursement can fit the bill if you want a replacement car if your car is still in the repair shop after an accident and you still need to travel. You will be covered by the collision and comprehensive insurance if you get involved in an accident 50 miles from your home. More importantly, the company covers your travel expenses including your meals, transportation, and lodging, as well as a trip to pick up your car.

If you've been driving for decades and still love to spend most of your time on the road, using State Farm's Drive Safe and Save program can help you save a lot of car insurance money. For example, you'll get about a 50% discount if they've analyzed your driving abilities through their intuitive mobile app.

The company also offers discounts to seniors who have taken defensive driving courses. In essence, the company believes that wisdom comes with age and so you should be a better driver given your many years on the road.

Pros

  • Offers some of the best discounts for seniors
  • It's available in most states
  • It has one of the best customer satisfaction ratings
  • It gives you the chance to freely explore the country

Cons

  • It's only meant for those who love traveling long-distance

Chubb - Best for Luxury Vehicles

You've probably worked hard for decades and you are looking to enjoy the fruits of your sweat in your retirement. One way of enjoying this is perhaps by buying a luxury car of your dreams and you definitely want the best auto insurance for your new acquisition. If your current car insurance doesn't understand the true value of your luxury care, then why not try insuring it with Chubb.

As the largest publicly traded insurance company in the world, Chubb combines deep experience and precision craftsmanship to offer one of the very best auto insurance for seniors. This insurance company generally works by agreeing with you on how much your car is worth. This means that it does not look at the market value of your car when it is totaled or stolen.

So if you're a senior and do not want to drive a standard car, you can go for your favorite luxury car and buy auto insurance coverage from Chubb. If anything, the company can offer rental coverage of up to $15,000 anywhere in the world if your car is in the repair shop.

With Chubb, you're sure that you will get what you pay for and you're always guaranteed that they will pay since they have a superior financial backing to do so.

Pros

  • It's available all over the world
  • It has one of the best customer satisfaction ratings
  • Its coverage is based on the worth of your car not its market value
  • It's excellent for luxury cars

Cons

  • It has some of the most expensive premiums

There are going to be changes in your life with every passing season. Whether you're celebrating your 16th birthday, going to college, getting married, having kids, working on your career, and eventually retiring, your auto insurance needs will always change. As a senior, your auto insurance will never be the same as it was when you started driving or in your 30s. Your lifestyle has changed and you're probably driving less than you used to do. For this reason, you should get a perfect auto insurance solution for you and your situation.

And because you're perhaps on a fixed income, you should look for an auto insurance coverage that suits your type of car, the type of lifestyle that you want to lead, the monthly rates that are offered, and of course, the senior discounts that are offered. We believe that age comes with wisdom and the best thing to do when looking for the best car insurance for seniors is to shop around and explore what is best for you. Luckily for you, we've listed some of the best car insurance for seniors. They offer some of the best options and discounts that will help you glide graciously and with poise into your golden years.

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We love planning for retirement. It's somewhat of a hobby, and we want to share what we've learned with you.

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