Companies Offering Cheap Car Insurance for Seniors

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Written by Paige Cerulli Edited by Quiana Darden Reviewed by Amanda Clear

Updated February 6, 2023

If you’re a senior driver, you may have noticed that your car insurance rates have started to increase as you’ve aged. That’s to be expected, but it doesn’t mean that you have to settle for these higher rates. Instead, you can shop around for cheaper car insurance and find a new policy that’s right for you. Starting with these companies can help you find cheap car insurance for seniors and quickly narrow down your search. 

Key Takeaways

• Car insurance rates decrease once you turn 25 and remain steady until you reach about sixty years old; at that point, they start to increase and continue to climb as you age. 
• Concord Group Insurance offers the cheapest car insurance for seniors, but there are many insurance companies, including American National Insurance Company and IMT Insurance, that also offer great rates. 
• When choosing the best insurance company for your needs, it’s important to make sure that the company not only offers great rates, but also provides the type of coverage you need. 
• There are several ways to save money on car insurance for senior drivers, including exploring policies with higher deductibles. 

Cheap Car Insurance Options for Senior Drivers

Every car insurance provider uses their own formula to calculate insurance premiums, and some companies tend to have lower rates than others. If you want to save on car insurance for senior drivers, then you may want to consider these insurance providers. The pricing below reflects the average annual insurance premiums for a 65-year-old driver of a Honda Accord with one driver and one vehicle on the policy. 

Concord Group Insurance  

Average Annual Premium: $651 per year

Concord Group Insurance was founded in 1928 and is based in Concord, New Hampshire. The company has an A+ AM Best rating and is known for its strong focus on providing quality, personalized customer service. With more than 600 local independent agents in Maine, Massachusetts, New Hampshire, and Vermont, drivers can connect with skilled professionals who can help ensure they find the policy that’s the right fit for their needs. 

In addition to standard coverage options, Concord Group Insurance offers some more unique policies as well. Its Redi-Paycheck coverage will reimburse wages that the policyholder and resident relatives may lose as the result of a car accident. New car replacement coverage for vehicles purchased within the last 12 months. Is available at no extra cost, too. 

American National Insurance Company  

Average Annual Premium: $799 per year

American National Insurance Company operates in all 50 states and Puerto Rico. The company holds an A rating from AM Best. In addition to car insurance, American National offers a broad selection of other products, including life insurance, annuities, homeowner’s insurance, farm and ranch insurance, health insurance, and recreational insurance, making it a one-stop-shop for insurance needs. 

While American National offers plenty of standard coverage options, it also provides some more unique car insurance perks. Policyholders who protect their home and vehicle with American National will only pay one deductible if both the home and vehicle are damaged or destroyed in the same event. The company covers up to $2,000 of custom equipment on a vehicle, and an Added Coverage Endorsement can help pay the cost of replacement parts on vehicles. 

IMT Insurance  

Average Annual Premium: $986 per year

IMT was founded in 1884, giving it a 130-year history of providing insurance products. Located in West Des Moines, Iowa, it offers insurance coverage throughout Iowa, Illinois, Minnesota, Nebraska, South Dakota, and Wisconsin. Independent insurance agents within those communities offer personalized service, whether that’s helping drivers to shop for a policy or processing a claim. 

IMT offers a broad selection of car insurance policy options that includes some less common policies like pet injury, theft of clothing and luggage, lock replacement, and identity recovery. Available discounts include good student, paid in full, customer loyalty, multi-car discounts, and more. 

CIG Insurance  

Average Annual Premium: $1,038 per year

CIG Insurance, or Capital Insurance Group, began over a century ago in Ventura, California with the goal of protecting farmers from disasters, including fires. Today, CIG offers agriculture, commercial, and personal insurance coverage throughout Arizona, California, Nevada, Oregon, and Washington. 

Rather than restricting drivers to standard coverage options, CIG provides customized protection and features. Some available options include come-to-you glass repair, name brand vehicle part replacement, and more. CIG also gives you the option to purchase an additional premium to protect valuables including jewelry or golf clubs. 

West Bend Mutual Insurance  

Average Annual Premium: $1,109 per year

Based in Wisconsin, West Bend Mutual Insurance was founded more than 125 years ago. Today the company offers a broad portfolio of insurance options, including condo, homeowner’s, identity theft, personal umbrella, renter’s, and sport and recreational vehicle insurance. 

West Bend Mutual Insurance provides more traditional auto insurance options, but coverage for classic cars is also available. Classic cars coverage carries no deductible and has low premiums. Coverage is also available for motorhomes, trailers, and motorcycles, and the company offers 24-hour emergency roadside service.

Oregon Mutual  

Average Annual Premium: $1,205 per year

Oregon Mutual was founded in 1894 and is an independent mutual insurance company. Oregon Mutual offers insurance policies in Oregon, Washington, California, and Idaho. The company has maintained an A rating from AM Best since 1990, and the business focuses on core values of integrity, respect, innovation, independence, and citizenship. 

Oregon Mutual’s farm and ranch coverage options include auto insurance. Coverage is available for farm trucks, seasonal drivers, and more. The company also offers general liability coverage. 

Car Insurance Options for Seniors

As you shop for car insurance as a senior driver, you’ll find you still have many different coverage options. The best coverage will depend on your state’s minimum requirements, whether you have lease or loan requirements, the level of risk you’re willing to take and your driving habits. 

Liability Coverage

Liability coverage helps to protect you if you are responsible for damaging someone else’s property or injuring someone else. Most states require drivers to carry a minimum amount of liability coverage, so liability is usually included in a standard auto insurance policy. 

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage helps to pay for expenses that result if you’re hit by a driver who is uninsured. Underinsured motorist coverage protects you if you’re hit by a driver who carries minimal insurance coverage that won’t fully pay for the damage or injuries that they caused. These types of coverages can help to prevent a situation where you are left paying for medical bills from an accident that you didn’t cause. 

Many states require uninsured and underinsured motorist coverage. Even if your state doesn’t require this type of coverage, it’s still a good idea to purchase a policy.

Collision Coverage

Collision coverage protects you from expenses that result from a collision, whether it’s an accident that you or another driver caused. Collision coverage also applies if your vehicle has collided with an object, like a fence, or if you’ve had a single-car rollover.  This type of policy is required if you are leasing or financing your vehicle. 

Comprehensive Coverage

Comprehensive coverage protects you against damage to or loss of your vehicle that occurs because of an event other than a collision. This type of coverage protects you against fire, falling objects, natural disasters, theft or vandalism, or damage done by animals.

If you’re leasing or financing your vehicle, you’ll be required to have comprehensive coverage. 

Personal Injury Protection

Personal injury protection (PIP) coverage, helps to pay for your medical expenses resulting from an accident. Sometimes it will also pay for lost wages. This coverage pays for medical bills regardless of who is at fault and may include ambulance bills, prescriptions, follow-up medical visits, and more. While some states require drivers to carry PIP, it’s optional in other states.  

Medical Payments Coverage

Medical payments coverage, also known as Med Pay, is an optional coverage that can help to pay for medical expenses after an accident. This coverage pays for medical bills for you or your passengers, even if you were at fault. It can help to pay for everything from hospital visits and ambulance fees to funeral expenses and surgeries.

Medical payments coverage isn’t available in every state, but most states that don’t support this type of coverage have personal injury protection coverage, instead.

Roadside Assistance

Some insurers include roadside assistance in their policies, while others offer it as an optional coverage. This type of coverage can pay for expenses like tire changes, towing, battery changes, and more, so you can quickly get back on the road again. 

Classic Car Insurance

Classic car insurance is a specialized policy for vintage, antique, or collectible cars. While traditional insurance might overlook some of the nuances of classic cars, like the fact that replacement parts are expensive and hard to find, this type of policy is designed to address those challenges if you ever need to file a claim. You and your insurance company will establish an agreed-upon value for your vehicle to ensure that, if you file a claim, you’ll receive what your classic car is truly worth. 

Is Car Insurance Cheaper as You Get Older?

Many factors impact your car insurance rates, including your age. Teen drivers pay significantly higher car insurance rates than middle-aged drivers. In fact, Forbes found that teens pay about $6,800 per year when they have their own car insurance policies. In contrast, a 40-year-old driver pays an average of $1,610 per year. Those higher rates for teens are due to the fact that teens are much more likely to get into car accidents than older drivers. 

As you age and gain experience, your car insurance rates drop. Female drivers who are 55 years old pay an average of $1,465 per year, while males pay an average of $1,475. Rates are even lower for 60-year old drivers, with females paying $1,454 and males paying $1,468, on average. 

But rates start to increase again after that. Women who are 65 pay an average of $1,489 per year, and males pay $1,513. Those rates continue to increase, and by the time drivers reach age 80, females pay $1,880 per year and males pay $1,997. 

Several factors contribute to those rate increases for seniors. As we age, the risk of being injured or killed in a car accident increases, meaning car insurance providers could be responsible for hefty medical expenses. Seniors experience vision, physical fitness, attention, and reaction time changes that can also affect their ability to avoid accidents. To account for this increased risk, car insurance companies charge higher premiums. 

How to Get Cheap Car Insurance as a Senior Driver

While there’s not much that you can do about how your age impacts your car insurance rates, you can control some other factors and get cheaper car insurance. 

Carefully Choose Your Vehicle

If you’re considering getting a new car but also want to save on your insurance rates, then it’s important to carefully choose your vehicle. Newer vehicles with all the bells and whistles are typically more expensive to insure than more affordable cars. It may be best to look for a more affordable new car that’s still a quality vehicle without the high price tag.

Even better, if money is tight, then you might shop around for a used vehicle. That vehicle’s value will have depreciated and you could save not only on the purchase cost, but also on the cost of your insurance premiums. 

Look Into Discounts

As you shop around for an insurance company, pay attention to the discounts the company offers. Qualifying for multiple discounts can be a great way to keep your premiums down. Common ones include multi-vehicle, multi-policy, good driver, electronic bill pay, and pay in full discounts, though there are many more available as well.  

Try Telematics

Insurance companies are increasingly offering telematics options, which may help you to save extra money. When using telematics, you will typically drive with an app on your phone that tracks your driving habits. Alternatively, you might have to install a device in your car. The technology monitors behaviors like hard braking, swerving, and speeding that could indicate a risky driver.

Then, it reports that information back to the insurance provider. If you demonstrate good, safe driving habits, insurance companies will offer you lower rates to reflect the fact that you’re a lower-risk driver. 

Some companies offer mileage-based plans and use telematics to track how far you drive in a month. You will pay a base monthly premium and then an additional fee that’s calculated based on your monthly mileage. A mileage-based plan can be an excellent choice if you’re retired, work from home, or just spend little time on the road. 

Explore Different Deductible Options

You can also look into changing your deductible. By choosing a car insurance policy with a higher deductible, you will pay a lower monthly premium. This can be a risk, but it’ll pay off if you don’t file an insurance claim often.

It’s important to only consider a higher deductible plan if you know that you will be able to pay in the event of an accident. Your insurance company will require you to pay your deductible before it covers any expenses. Think carefully about how much you would be comfortable paying in an emergency. 

Shop Around

Taking the time to shop around for car insurance can help you to find the best rates. Compare.com makes it easy. With our auto insurance comparison tool, you just need to fill out a single quote request form, which takes about five minutes. Then, we’ll gather customized quotes and present you with the best options. You can easily narrow down those choices and determine which insurance policy gives you the best deal and the coverage that you need. 

FAQs About Cheap Car Insurance for Seniors

What is the cheapest car insurance for senior citizens? 

Based on average rates, Concord Group Insurance offers the cheapest car insurance for senior citizens, with a 65-year-old driver of a Honda Accord paying around $651 per year. The American National Insurance Company and IMT Insurance are the second and third cheapest options. Remember that this information is based on average rates, and your rates will depend on other factors like your driving history and the value of your vehicle. 

What is the best car insurance for senior citizens? 

The best car insurance for senior citizens is the policy that best meets your needs. When choosing the best insurance, consider not only price, but also other important factors like the quality of the customer service, the coverage options and limits, your deductible, and the claims process. 

Is senior car insurance worth it? 

Unless you live in New Hampshire or Virginia, you are required by law to carry car insurance when you drive. Insurance may be expensive, but if you want to continue to drive, it’s a must-have and can help to financially protect you and others after an accident.

Paige Cerulli Auto Insurance Writer

Paige has written extensively on automotive topics. She frequently covers autonomous driving and electric vehicle topics, writes about car insurance and auto loans, covers car and trailer towing safety, and has written content for automotive dealerships.