Best car insurance for seniors for April 2023

Seniors and retirees can get auto insurance much cheaper than younger drivers because they have many years of experience behind the wheel and may drive fewer miles. However, rates also tend to rise once drivers reach the age of 70, so you may need to change insurance companies over time to ensure you get the best rates and coverage.

When shopping for auto insurance as a senior, it’s important to make sure that the company not only offers low premiums, but also key features like an easy claims process and a guaranteed renewal program. Ahead, CNBC Select reviews the best car insurance companies for seniors based on various categories. Many of our picks are also top picks for anyone looking for the best auto insurance in 2023. (See our methodology on how to choose the best auto insurance for seniors.)

Geico is highly rated for financial strength by AM Best and customer satisfaction by JD Power. Seniors can take advantage of a number of deductibles available to lower the cost of coverage, such as completing a defensive driving course, being accident-free for at least five years and for retired government employees. For those 50 and older, its Guaranteed Renewal Program can protect you from being dropped out by your insurance company as you get older.

Nationwide is ideal for retirees who may be driving less than they used to. Its SmartMiles program offers flexible monthly rates based on the number of miles you fly, so the less you drive, the less you pay. Coverage is available in most states and Nationwide is highly rated for both financial strength and customer satisfaction.

Car owners consistently achieve high customer satisfaction and claims ratings by JD Power and have a superior A++ credit rating from AM Best. While this auto insurance coverage isn’t available in every state and you must work with an agent to get a quote, car owners do offer affordable rates for seniors with a number of discounts available to take advantage of, such as a low mileage discount.

USAA is one of the best options for seniors who served in the military (or their immediate family members). Not only has the insurance company consistently received high marks for customer satisfaction and financial strength, but it also offers low premiums for drivers of all ages. It offers a wide variety of discounts for people of all ages, including seniors, and a number of other types of insurance products to bundle up and save more.

Those in their 50s and 60s pay the least for car insurance, according to data from Bankrate. While the average 40-year-old pays an average of $2,020 a year for full car insurance coverage annually, the average 50-year-old pays $1,885, and the average 60-year-old pays a year, $1,832. However, auto insurance rates start to increase once you reach your 70s.

Auto insurance rates increase for the 70-somethings, who pay an average of $2,001 a year. That’s about $170 more than a 60-year-old would pay.

Older adults are considered high-risk drivers because they pose a higher risk of being injured or killed in a car accident. According to the Centers for Disease Control and Prevention (CDC), this is due to age-related changes in vision, hearing, cognition, and physical performance, as well as the fact that some medications may affect driving abilities in some older adults.

Other types of high-risk drivers include those with less driving experience, poor credit, a prior at-fault accident, a history of traffic violations, a DUI or a large number of points on their license.

Seniors can save money on auto insurance by taking defensive driving lessons. These courses are often offered online and can be obtained through the National Safety Board, AARP, and AAA.

Shopping can also ensure that you get the best deal. To get started, get quotes from several insurance companies and compare prices, paying attention to the amount of coverage and the types of coverage covered.

Increasing your credit score is another way to lower the amount you will have to pay for coverage. In many states, auto insurance companies take into account your credit score in determining how much you will pay. The higher your credit score, the lower your premium.

Incorporating homeowners insurance or renters insurance with your auto insurance policy can help lower your insurance costs. Many insurance companies offer discounts for pooling policies.

Finally, consider increasing your deductible, or the amount you’ll be responsible for paying before the insurance kicks in. As deductibles go up, premiums tend to go down. However, you’ll want to make sure your deductible is reasonable for you, as you’ll need to be able to cover that amount if something happens.

There are many affordable, high-quality car insurance options for seniors. Shopping for coverage, pooling your insurance policies, and raising your deductible can help make auto insurance more affordable for older drivers.

In determining the best auto insurance companies for seniors, CNBC Select looked at several auto insurance companies, focusing on those available in a variety of states.

In narrowing down the best car insurance companies for seniors, we focused on average cost data from Bankrate, customer satisfaction data from JD Power, and financial strength ratings from AM Best. We also looked at the number of states where coverage is available, along with the number of deductibles available.

Average annual premium data is based on a 70-year-old driver with a clean driving record, good credit, and a 2020 Toyota Camry with 12,000 miles per year and the following coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 for property damage liability per accident
• $100,000 uninsured motorist injury per person
• $300,000 injury to an uninsured motorist per accident
• $500 collision deductible
• $500 for the all inclusive discount

After reviewing the features and costs above, we’ve sorted our recommendations by best overall, best for customer satisfaction, best for military members, and best for drivers who travel short distances.

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