Best Auto Insurance for Seniors

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.

AARP Membership Benefits

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:

• 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

Additional Car Support 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 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.

Long List of 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)

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.

USAA Membership Benefits

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:

• Financial advice for managing debt, planning for retirement, buying a home, saving, investing, and more
• Special rates on auto loans
• $0 down on ADT home security installation
• Banking guidance to help you manage your loans and auto insurance
• 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

Good Savings and Discounts

USAA has a healthy list of discounts that save the average driver $725 per year — and those discounts extend to your spouse, children, step-children, 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:

• Multi-vehicle discount
• 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 10 percent off for transitioning off a parent’s policy (good for children and grandchildren)
• Up to 30 percent off for completing the USAA SafePilot driving program
• Good student discount, which can help children or grandchildren save

Coverage for Rideshare Drivers

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.

Mileage- and Usage-Based Options

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 annually or less. 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.

On Your Side Review

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:

• Whether your current policy or policies give you the coverage you need
• If recent or upcoming life events necessitate a change in coverage
• Taking advantage of all available discounts

Coverages for New Cars

Nationwide offers a couple coverage options that will benefit new car owners in particular:

• Gap coverage, which pays for the difference in the actual cash value (ACV) of your vehicle and what you owe on the loan or lease in the event of a total loss
• New-car replacement, which pays for a replacement vehicle in the event your new car is totaled

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.

Lower Rates After an Accident

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.

Easy Mobile App Experience

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.

RV Coverage

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:

• Bodily injury and property damage liability
• Bodily injury due to an accident with an uninsured motorist
• Damage to your RV or motor home sustained in an accident
• Theft, fire, vandalism, and other losses, even if your vehicle is in storage
• Emergency roadside service if your vehicle breaks down during travel

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.

Prime Time Contract

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:

• At least 50 years old
• No one under the age of 25 on your policy
• No violations or accidents in the past three years
• No vehicle on the policy used for business purposes (e.g., rideshare)

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.

Low Rates and Many Discounts

GEICO keeps premiums low by offering more discounts than many competitors, including several that seniors, in particular, may benefit from:

• Defensive driving, for drivers over age 50 (or 55, depending on the state) who take an approved defensive driver course; in some states, you also need to be accident-free for three years to qualify
• Accident-free, which can save you up to 22 percent if you’ve gone five years without an accident
• Retired federal, which can save retired government employees GS-7 and above (or GS-11 equivalent if not on the GS pay system) up to 12 percent
• Retired military, which can save retired U.S. military members up to 15 percent

Accident Forgiveness

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.