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. 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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.