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Icon CheckLast updated: October 24, 2022

Best Auto Insurance for Seniors

The best rates, plans, and discounts for older Americans

Best Overall Auto Insurance for Seniors
AARP logo

The AARP auto insurance program from The Hartford has been serving Americans over 50 for more than 40 years. With a robust set of AARP membership benefits, a great service team, and a number of discounts, the AARP is our top overall pick for seniors.

Best Auto Insurance for Military Seniors and Veterans
USAA Logo

The USAA’s auto insurance plan is exclusive to active military members, veterans, and military families. If you’re eligible to apply, you can enjoy some of the cheapest auto insurance rates in the country ($1,151 on average annually) and a host of USAA membership perks.

As Americans get older, their lifestyles, goals, and auto insurance needs will change. Older Americans who enter retirement, decide to travel the country or purchase a new vehicle are looking for the best deals that fit their circumstances. But how do you know who offers the best deals? And which auto insurance policies become available to Americans as they age?

Below is a list of the best auto insurance policies and companies for seniors. We looked at plans, prices, deals, and unique benefits to come up with a well-rounded list of auto insurance providers.

 

Summary of the Best Auto Insurance for Seniors

  1. 1.

    Best Overall Auto Insurance for Seniors: AARP

  2. 2.

    Best Auto Insurance for Military Seniors and Veterans: USAA

  3. 3.

    Best Auto Insurance Add-ons for Seniors: State Farm

  4. 4.

    Best Auto Insurance and Retirement Plans for Seniors: Liberty Mutual

  5. 5.

    Best Bundling Auto Insurance for Seniors: Allstate

Comparison of the Best Auto Insurance for Seniors

Insurance company #1. AARP (The Hartford) #2. USAA #3. State Farm #4. Liberty Mutual $5. Allstate
Average annual rates for drivers $1,520 $1,151 $1,419 $1,637 $1,673
Bundling discounts (renters or homeowners insurance) Yes Yes Yes Yes Yes
Senior discount Yes No No Yes Yes
Retirement and investments plans Yes Yes Yes Yes Yes
J.D. Power customer satisfaction index (Southeast) (out of 1,000)1 886 860 855 831 833
Review AARP (The Hartford) review USAA review State Farm review Liberty Mutual review Allstate review

Detailed List of the Best Auto Insurance Companies for Seniors

1. Best Overall Auto Insurance for Seniors - AARP
AARP logo

What We Like Most:

  • Best option for seniors
  • RecoverCare adds more coverage
  • Discounted policies from The Hartford

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. The AARP auto insurance program with The Hartford is our No. 1 choice for its wide range of coverage options, discounts, benefits, and customer support services for seniors specifically.

ProsWho It's Best For
  • pro
    Americans over the age of 50
  • pro
    People who want to bundle their auto insurance
  • pro
    People who could benefit from AARP membership perks
  • pro
    Drivers who want gap insurance
ConsWho It's Not Best For
  • con
    Non-AARP members
  • con
    Drivers under the age of 50
  • con
    Tesla owners (AARP does not insure Tesla’s vehicles at the moment)

AARP Membership Benefits

You’ll 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 deals. 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:

  • Rental car discounts
  • Exclusive AARP cruise tours
  • Flights and vacation packages
  • Hotel and resort packages
  • Dental, health, and vision bundling options
  • Shopping and grocery deals
  • Restaurant discounts
  • The AARP Social Security Resource Center for help with retirement
  • Access to the AARP job boards
  • Access to the AARP magazine

Long List of Car Insurance Discounts

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:

  • 5 percent off with an anti-locking braking system
  • 10 percent off with the installation of an anti-theft system
  • Up to 20 percent off for insuring multiple vehicles
  • Up to 12 percent off if you complete the TrueLane safe driving program
  • 5 percent off if you move your insurance to The Hartford from another provider
  • Paying in full as opposed to monthly
  • Requesting a quote online
  • Up to 25 percent off for renewing your insurance
  • Hybrid and electric car (not available for Teslas)

Additional Car Support and Services

You and your loved ones can rest easy with the AARP’s robust support system and services. Not only does the AARP have dedicated customer service representatives available 24/7, but it also has a number of safety nets in the case of an emergency. Members can benefit from lifetime car repair assurance, for example. 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 unique needs.

2. Best Auto Insurance for Military Seniors and Veterans - USAA

What We Like Most:

  • Lowest rates for military members, veterans, and their families
  • Rideshare insurance available
  • Usage-based insurance available for low-mileage drivers

The United Services Automobile Association, better known as USAA, offers the cheapest rates among the 10 largest insurance providers.2 You have to be a USAA member to apply for coverage, and membership is exclusive to military personnel, veterans, and their families.

If you qualify for a membership, you can get some of the cheapest auto insurance rates in the country, exclusive USAA membership benefits, and financial support for investments and retirement.

ProsWho It's Best For
  • pro
    Active military members, veterans, and their families
  • pro
    Military members stationed overseas who have cars in the U.S.
  • pro
    Individuals who can benefit from USAA membership perks
  • pro
    Safe drivers
ConsWho It's Not Best For
  • con
    People who aren’t a part of the military or a military family
  • con
    Drivers who have a DUI
  • con
    Non-USAA members

Big Car Insurance Savings

The USAA has a healthy list of discounts that save the average driver $725 per year. Remember that all discounts extend to your family members as well. That being 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. Here are some examples:

  • Good student discount
  • Multi-vehicle discount
  • Up to 15 percent off if you keep your car on a military base
  • Up to 60 percent if you keep your car in storage while deployed overseas
  • Discount for being accident-free for over five years
  • Up to 10 percent off for bundling home and car insurance
  • 3 percent off for setting up automatic payments.
  • Up to 30 percent off for completing the USAA SafePilot driving program

USAA Membership Benefits

Similar to AARP, the USAA offers several attractive 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:

  • Financial advice for managing debt, planning for retirement, buying a new home, saving, investing, and more
  • $0 down on ADT home security installation
  • Banking guidance to help you manage your loans, auto insurance, bundling options and more
  • Discounts on hotels, cruises, shopping, vacation packages, travel insurance, and more
  • 24/7 customer support hotline
  • Benefits extend to former military members, spouses, and children of active/former military members

Extra Coverage Options

On top of being one of the most affordable auto insurance providers in the country, USAA is comprehensive when it comes to coverage. It comes with full coverage car insurance options such as liability coverage (bodily injury and property damage), uninsured/underinsured coverage, collision coverage, comprehensive coverage, and medical coverage (PIP), but it has a few add-ons as well. These include rideshare insurance, car replacement insurance if your car is totaled, and accident forgiveness.

3. Best Auto Insurance Add-ons for Seniors - State Farm

What We Like Most:

  • Local agents
  • Rideshare insurance available
  • Discounts for having multiple cars

Funny commercials and catchy taglines aside, State Farm is an all-around great auto insurance option for older Americans. At $1,419 annually on average, State Farm is the second-cheapest provider on our list. Not only is it the largest auto insurance provider in the country, but also it has some of the most flexible coverage options, discounts, and add-ons available.

ProsWho It's Best For
  • pro
    People who need SR-22s
  • pro
    Drivers who like managing their insurance from a mobile app
  • pro
    People looking to bundle multiple insurance policies
  • pro
    Safe drivers
ConsWho It's Not Best For
  • con
    People with a history of at-fault accidents
  • con
    People who want gap insurance
  • con
    People looking for new policies in Massachusetts and Rhode Island (State Farm no longer sells new policies in those states)

Flexible Add-ons

On top of basic and full coverage options (liability, comprehensive, collision, etc.), you can add on several other types of protection. Mix and match add-ons to create a policy that caters to your specific needs. Some of State Farm’s add-ons include emergency service coverage, rideshare insurance, rental car and travel insurance, and glass coverage.

Bundling Options

With State Farm, you can customize and maximize your auto insurance needs by bundling other types of coverage under the same plan. This is a good option for people who want the convenience of managing all of their insurance policies with the same provider, and it offers additional discounts. With State Farm, you’ll be able to bundle coverage for your golf cart, RV, house, apartment, condo, life insurance, health insurance, and more.

Seamless Mobile App Features

State Farm has a simple and easy-to-use mobile app that seniors will love. Recently, it won the best insurance mobile app and bank mobile app in The Webby Awards and Mobile Web Award.3

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.

4. Best Auto Insurance and Retirement Plans for Seniors - Liberty Mutual

What We Like Most:

  • Save up to 30 percent with driver monitoring program
  • Cheap average rates
  • Over 2,000 local agents throughout the U.S.

Although it’s one of the more expensive providers on the list, Liberty Mutual’s $1,637 annual average price is still cheaper than the national average. Liberty Mutual has a great life insurance plan for older Americans looking to improve their retirement plans and get some added benefits like guarantees on your income tax credit and flexible life insurance options. Like State Farm and some of the other major providers, Liberty Mutual has multiple coverage types, several discounts, and extra benefits.

ProsWho It's Best For
  • pro
    People with new cars
  • pro
    Safe drivers
  • pro
    People who don’t have insurance currently
  • pro
    People who can take advantage of the retirement benefits
ConsWho It's Not Best For
  • con
    Drivers with a DUI on their record
  • con
    People looking for cheaper insurance options
  • con
    People who want the best customer service ratings

TIP:

Reach out to AutoInsurance.com if you’ve had a DUI recently. We can connect you to an insurer that meets your specific needs.

Gap Insurance

Liberty Mutual is a good option if you’re looking to lease or finance a vehicle. If you total your car in an accident, your gap insurance will cover the remaining balance on your auto loan. That way, you aren’t required to continue making monthly payments on a vehicle that’s no longer operational. Gap insurance will provide the same protection if your leased/financed vehicle is stolen.

Life Insurance and Retirement Benefits

Liberty Mutual has three life insurance options that can give seniors some added benefits as they head into retirement. The three life insurance options are term life insurance, whole life insurance, and fixed annuities or fixed income insurance.

Type of insurance Definition
Term life This is an affordable option to meet shorter time periods if you’re just starting to invest in life insurance. Payments remain the same for a predetermined period, and you’re guaranteed a specific death benefit based on the term you select.
Whole life This guarantees an income-tax-free benefit, level premiums, a minimum return, and immediate access to principal. You get the strongest guarantees and most protection from whole life insurance.
Fixed annuities/income This has a simple structure that requires you to make one lump-sum premium payment in exchange for a guaranteed stream of income for retirement.

Lots of Savings

One way to bring down the cost of insurance with Liberty Mutual is to take advantage of its many discounts. While these vary from state to state, you may be able to access the following Liberty Mutual discounts:

  • Paperless policy discount
  • Multi-vehicle discount
  • Military/veteran discount
  • Clean driving history discount
  • Up to a 30 percent discount for good driving behavior with the RightTrack program, which you can access through the mobile app or a plug-in device (the plug-in device is available in New York only)
  • Up to a 12 percent discount for purchasing insurance online
5. Best Bundling Auto Insurance for Seniors - Allstate

What We Like Most:

  • Low rates for teen drivers
  • A+ rating from AM Best means financial stability
  • Great customer service

Allstate is one of the country’s major providers and has been serving Americans since 1931. It has great bundling options, a strong customer satisfaction score, plenty of discounts, and significant add-ons for your auto insurance.

ProsWho It's Best For
  • pro
    Homeowners who want to bundle their home and auto insurance
  • pro
    Low-mileage drivers
  • pro
    Safe drivers
  • pro
    People who want rideshare coverage
ConsWho It's Not Best For
  • con
    People on a budget
  • con
    Drivers with an at-fault accident in their history
  • con
    People who have a DUI on their record

Bundling Made Easy

Whether you have homeowners insurance or renters insurance, Allstate makes it easy to bundle. As a homeowner, you can receive up to 25 percent off your plan, and Allstate has other bundling options for condo or renters insurance. You can mix and match coverages and gain access to new discounts when bundling your home, renters, auto, and motorcycle insurance. All of your bundling options are available to you online, so you can easily adjust your policy whenever you want.

Financial Reliability

Allstate is one of the 10 largest providers in the country and one of the most reliable car insurance companies on the market. AM Best, the largest credit rating agency globally, gave Allstate an A+ rating for financial strength, which is the second-highest rating an insurance company can get.4 The score takes into account Allstate’s balance sheet strength, operating performance, and risk management rating.

Safe-Driver Incentives

If you’re looking for more incentives and savings on your car insurance, you can look at Allstate’s safe-driver discounts. Insurance prices start to dramatically increase for older Americans over the age of 70, so it’s important to take advantage of all the discounts you can get in order to keep your rates low. Safe drivers will be able to apply for deductible rewards, a Safe Driving Bonus program, and Allstate’s Drivewise program.

FYI:

The higher your deductible is, the lower your premium will be, and vice versa.

Allstate program Description
Safe Driving Bonus You get access to cash bonuses for each insurance policy period without an accident.
Deductible rewards You can get $100 off your collision deductible the day you sign up for insurance and an additional $100 off each year you drive accident-free (up to $500 total).
Drivewise Drivewise is a safe driving tool that tracks your driving habits from the mobile app. Drivewise will tell you how safely you’re driving every week for up to 40% off.

Methodology

Our focus throughout this guide was to find the cheapest rates for the various unique needs that you may have as a driver. It’s important to note that depending on your location, age, gender, driving record, or vehicle type, the rates you’ll find might differ from the averages we’ve presented. Based on the company information, quotes, and data we’ve collected, we think these rates will apply to most drivers within their respective categories (military families, seniors, students, and so on). Our approach for finding these rates involved the following sources.

  • Proprietary data: AutoInsurance.com has recorded and collected data from millions of car insurance transactions. That information and data help us understand which kinds of plans customers have the most success with and which insurance providers offer the best policies. Our data-driven approach allows us to make informed comparisons of the country’s major insurance companies so you don’t have to.
  • Expert institutional guidance: We consult directly with Paul Ford, the president of insurance services at Centerfield, AutoInsurance.com’s parent company. Paul has spent three decades in the insurance industry, with tenures at Capital One Insurance Services, NetQuote, Bankrate, Datalot, and Canadian Access, among others. Paul’s extensive institutional knowledge and expert guidance help us provide customers with everything they need to find the perfect policy.
  • Information from the providers: Sometimes, the best place to find the information you need is directly from the source. That’s why we look directly at insurance providers to compare prices, evaluate benefits and discounts, and assess their insurance processes.

Frequently Asked Questions

Which provider offers the cheapest auto insurance rates for seniors?

On average, Metromile and Root offer the cheapest car insurance rates in the country. If you’re a senior with a low annual mileage and a good driving history, Root and Metromile will be the cheapest options for you.

However, if you drive many miles, you shouldn’t go with a usage-based or pay-per-mile car insurance company. Rather, look for companies that offer other discounts that can apply to you and help you save money on your car insurance premium. For example, you may be able to find affordable car insurance for older drivers by taking a defensive driving course.

At what age do car insurance costs increase for seniors?

On average, insurance rates begin to increase for seniors age 70 and over. Seniors over the age of 85 pay the highest rates, at $2,416 annually on average.

Which company offers the best rates for seniors with a poor credit score?

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.

Which company offers the best rates for seniors who have been in an accident?

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.

Citations

  1. Auto Insurance Rate Hikes Erode Price Satisfaction, Drive Surge in Value Shopping, J.D. Power Finds. J.D Power. (2022, May 23).
    https://www.jdpower.com/business/press-releases/2022-us-insurance-shopping-study

  2. Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2021).
    https://www.iii.org/fact-statistic/facts-statistics-insurance-company-rankings

  3. State Farm Mobile App – 2021. The Webby Awards. (2021).
    https://winners.webbyawards.com/2021/apps-and-software/mobile-ott-app-features/best-user-interface/182895/state-farm-mobile-app–2021

  4. AM Best Affirms Credit Ratings of The Allstate Corporation and Its Key Subsidiaries. AM Best. (2020, Jun 19).
    https://news.ambest.com/presscontent.aspx?refnum=29520&altsrc=9