How Much Is Car Insurance for Seniors?

While auto insurance rates generally favor older drivers, costs begin to rise around age 70. However, seniors can keep premiums manageable by comparing rates, leveraging low-mileage discounts, and adjusting coverage on older vehicles.

A 55-year-old pays about $1,999 a year, and a 65-year-old about $2,002. That’s less than the $2,294 a similar driver would pay at age 35.

Car insurance premiums don't start climbing until around 70, when the average rises to about $2,126. According to the Insurance Institute for Highway Safety (IIHS) insurance-claims data, drivers in their late 60s file the fewest property-damage and collision claims per insured vehicle, with rates ticking up after about 70.¹

The most affordable carrier for a 65-year-old is American National, at about $797 a year, followed by Root and USAA, which is open only to military servicemembers, veterans, and qualified family members.

The cheapest premium doesn’t always indicate the best value. A rock-bottom premium from an insurer that's slow to pay a claim or deeply discounts your settlement can cost you more after a wreck than a slightly higher premium from a company that pays quickly.

Don’t just look at premium alone: You should also consider the policy's overall coverage quality, clear policy terms, and the true value the insurer delivers when you need to file a claim.

The biggest savings for most seniors come from driving less, bundling policies, and trimming optional coverage you no longer need.

Ask for the low-mileage discount. 

If you've retired and dropped the daily commute, you probably drive far less than you used to. Tell your insurer your new annual mileage and ask them to re-rate you, then use Luva to compare rates from multiple insurance companies.

Bundle your home and auto

A bundling discount especially fits this age group. In Luva’s research, about 41% of homeowners 75 and older who are shopping for car insurance flag interest in adding a home insurance quote. reflecting high homeownership late in life.² Buying both from one insurer cuts a premium by about 14% on average for a homeowner. Actual savings vary.

Try a usage-based (telematics) program

These track how and how much you drive, then set your rate. However, while low-mileage drivers can save, some programs will potentially raise your rates at renewal, too, if the data shows you’re a risky driver.³

Take an approved defensive driving course

Many insurers give drivers 55 and older a discount for finishing an approved accident-prevention course.⁴ The AARP Smart Driver course and AAA's senior courses are two well-known examples. 

Pay in full, autopay, and go paperless

These are small discounts, but they add up. Ask your insurer to apply all three.

Increase your deductible

A higher deductible lowers your premium immediately. However, make sure you don't raise it so high that you can't afford out-of-pocket costs to repair or replace your car if you need to file a claim.³

Shop around every year or two

Every company prices age differently, so the insurer that was cheapest at 60 may not be the cheapest at 72.

With Luva, you can compare the same coverage across several insurers before you renew to see which insurer prices your profile the lowest.

Dropping collision and comprehensive coverage can be a smart move on an older, low-value car.³ But switching to liability-only means you pay for any damage to your own vehicle out of your own pocket.

If you’re considering dropping collision and comprehensive, ask yourself these questions:

1. Is the car paid off? If you still owe or lease, your lender almost certainly requires collision and comprehensive.

2. Multiply your collision and comprehensive coverage by ten. Is the car worth less? If so, you may be better off dropping the additional coverage. 

3. Could you afford to repair or replace it out of pocket tomorrow?

If you answered yes to all three, dropping collision and comprehensive may make sense. Otherwise, it may be wise to keep it. But whatever you do, don't drop liability, which protects you and, in every state except New Hampshire, is legally required to drive.

Snowbirds are natural candidates for low-mileage and pay-per-mile programs, since a car that mostly sits may only cover a few thousand miles a year.³ Sharing your seasonal driving habits with your insurer ensures you only pay for the time you're actually behind the wheel.

Just don't cancel outright while you're away, or you'll trigger a lapse penalty when you restart. Maintaining continuous coverage also protects your rate and keeps your vehicle legally compliant. 

You may also want to keep comprehensive, which protects you against vandalism, break-ins, floods, fires, and insect/critter infestations while you’re away.