The best rates, plans, and discounts for older Americans
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.
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.
Best Overall Auto Insurance for Seniors: AARP
Best Auto Insurance for Military Seniors and Veterans: USAA
Best Auto Insurance Add-ons for Seniors: State Farm
Best Auto Insurance and Retirement Plans for Seniors: Liberty Mutual
Best Bundling Auto Insurance for Seniors: Allstate
|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|
|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|
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.
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:
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:
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.
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.
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:
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:
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.
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.
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.
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.
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.
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.
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.
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.|
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:
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.
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.
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.
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.
|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.|
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.
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.
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.
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, 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.
Auto Insurance Rate Hikes Erode Price Satisfaction, Drive Surge in Value Shopping, J.D. Power Finds. J.D Power. (2022, May 23).
Facts + Statistics: Insurance company rankings. Insurance Information Institute. (2021).
State Farm Mobile App – 2021. The Webby Awards. (2021).
AM Best Affirms Credit Ratings of The Allstate Corporation and Its Key Subsidiaries. AM Best. (2020, Jun 19).