During retirement years, several seniors look to hit the road to explore and enjoy life in ways they couldn’t before. In such cases, having a reliable and affordable car insurance policy in place would act as a safety net in case of unforeseen circumstances. Insurance rates increase for drivers over 65 due to risks associated with age. Fortunately, many insurance companies offer affordable senior car insurance to help them offset such rising costs.
Affordable car insurance options for seniors
1. Nationwide
It is one of the insurance companies known for offering pocket-friendly car insurance rates for seniors over 70. The affordability factor, combined with a history of low customer complaints, makes Nationwide a top choice for senior drivers. In addition, the company also provides various coverage benefits to its customers.
- New car replacement
- Gap insurance
- Accident forgiveness
- Vanishing deductible
Seniors who drive less can also consider their pay-per-mile program. It is called SmartMiles and offers coverage similar to the traditional policy’s. But, a flexible monthly rate is involved, which primarily depends on the miles driven. To sign up for the program, seniors can purchase a Nationwide policy online or contact an agent for the same and choose SmartMiles as an option when buying the policy. But, it is important to note that Nationwide car insurance is unavailable in Massachusetts, Louisiana, Hawaii, and Alaska.
2. AARP
The company has been serving senior drivers for decades, having partnered with The Hartford since 1984 to roll out affordable auto insurance for individuals over 50. The average auto insurance cost offered by this provider is $1332 for a 12-month policy (around $111 monthly). This is significantly cheaper compared to the national average. Furthermore, the company also offers a unique add-on coverage option—RecoverCare, which increases the coverage amount. With RecoverCare, senior drivers are eligible for a reimbursement on household service-related expenses like cleaning, lawn maintenance, and repairs that they cannot meet due to an accident.
Customers need not be AARP members to purchase an insurance policy with The Hartford. But, their unique senior program is strictly exclusive to AARP members. The myriad of benefits, discounts, superior customer support, and various coverage options make AARP one of the best insurance options for senior drivers.
3. USAA
The organization offers one of the most affordable senior car insurance and is one of the largest providers in the country. But, it is important to note that their membership is restricted to a specific target group, which includes active military personnel, veterans, and their families. Qualifying individuals can avail of the cheapest auto insurance rates in the country, financial support for retirement and investments, and exclusive USAA perks like special rates on auto loans.
Further, once an individual signs up for membership, their children and grandchildren are eligible to become members and take advantage of USAA’s financial services and insurance offerings.
4. Travelers
Known for offering gap insurance at affordable rates, Travelers car insurance also helps drivers from expenses related to unforeseen circumstances like accidents or thefts. Furthermore, their new car replacement feature lasts for half a decade, making it one of the top affordable senior car insurance for those over 80. The average monthly rate is $139 for senior drivers. One can also receive discounts for vehicles less than three years old, as well as electric and hybrid cars. The company also offers minor violation forgiveness and accident forgiveness.
5. Allstate
While Allstate’s insurance premium for seniors is high, its solid claims satisfaction score from JD Power and A+ Rating from AM Best make it one of the top choices. Seniors opting for the policy can save big with its Deductible Rewards program, which lowers the collision coverage deductible for every year without any accident.
Beyond this, Allstate also offers a Safe Driving Bonus for its safe riders who go six months without any accidents. Although the company has limited endorsement options, it offers various perks like rideshare coverage, classic car insurance, and rental car reimbursement.
6. Erie
Often featured in the list of best car insurance companies for seniors, Erie is known for offering affordable annual rates for older drivers. Besides offering competitive rates, the company also ranks among the best insurance providers handling collision claims. They also have a low complaint level. With the Erie Rate Lock feature, older drivers can keep the rate the same year after year unless they want some notable changes to the policy, like adding a vehicle. But, drivers with poor credit history may not get the most competitive rates with Erie. Other key highlights of this car insurance provider include gap insurance, add-on coverage for accident forgiveness, diminishing deductible, and new car replacement.
7. GEICO
The company stands out as a widely available and affordable insurance option, especially for seniors. It offers a special plan for drivers over 50, providing a guaranteed renewal feature that ensures continued coverage, given premiums are consistently paid. This insurance policy will benefit seniors who are on a budget, long-term GEICO customers, drivers looking for accident forgiveness, and seniors with bad credit or speeding tickets. The company also offers a contract—Prime Time—which ensures the policy won’t be canceled even if an individual is at fault for an accident or if they get multiple tickets. But, to be eligible, drivers need to be over 50, with a history of no accidents or road safety violations in the past three years. The company also offers various discounts which may benefit senior drivers in particular.
- Defensive driving discount
- Discounts for being accident-free for five years
- Discounts for retired federal employees
- Discounts for retired military members
GEICO offers both earned and purchasable accident forgiveness, keeping premiums stable after an at-fault accident.