Car Insurance Discounts for Senior Citizens

Name: Car Insurance Discounts for Senior Citizens
Item: Car Insurance Discounts for Senior Citizens
Author: Mark Fitzpatrick

To cater to mature drivers, some auto insurance providers offer senior-specific discounts. These include GEICO, Progressive, Allstate and Farm Bureau. Most of these companies require a safe driving course certificate, which can be tricky if you’re on a budget.

Insurance providers offer a number of other discounts that are easy to qualify for and require no extra steps, which can help you maximize your savings. Even without discounts, some providers also offer cheaper overall auto insurance for seniors, which may be worth exploring.

What Are Car Insurance Discounts for Senior Citizens?
How Much Is Auto Insurance for Senior Citizens?
Other Car Insurance Discounts Senior Citizens Can Use
Other Ways Senior Citizens Can Save on Auto Insurance
Frequently Asked Questions About Car Insurance Discounts for Seniors

What Are Car Insurance Discounts for Senior Citizens?

A car insurance discount for seniors offers a small reduction in your annual premium. This is typically given to those between 45 and 55 years old but will depend on the insurance provider.

Most big companies offer senior citizen discounts, and regional companies may offer them in your area too. To help you narrow down your search, MoneyGeek made a list of companies that offer senior citizens auto insurance discounts and outlined some of their requirements.

Companies That Offer Senior Citizen Discounts

Company With Senior Discount	Description
21st Century	Drivers 55 years or older can save on their insurance coverage. In order to qualify, drivers must complete a state-recognized defensive driving course.
Allstate	Allstate offers seniors a special discount, but the discount will depend on their circumstances. To qualify, seniors must complete a state-recognized defensive driving course, such as one from AARP.
American Family	American Family offers drivers 55 and older a discount if they complete an approved defensive driving course. However, this is not available in every state.
Direct General	You can qualify for Direct General's discount if you are 55 years old or older and have successfully completed a motor vehicle accident prevention course.
Farmers	Farmers offers a Senior Defensive Driver discount. To be eligible, drivers must be between the ages of 55 and 65 — the actual age depends on the state — and have successfully completed a Department of Motor Vehicles-approved driver’s education course. A certificate of completion must be provided.
GEICO	If you are 50 years old or older, GEICO offers discounts, such as their defensive driving discount and retirement, government and military discounts. Eligibility rules and requirements for defensive driving discounts vary by state. They also offer discounts between 12% and 15% for retired federal employees and military members.
Kemper	For drivers over the age of 65, Kemper offers a senior discount.
Mercury	Mercury provides a discount to drivers 55 and older who have completed a driver improvement course at a DMV-approved school.
National General	Seniors in certain states can apply for National General’s safe driving discount, but eligibility can vary by state.
NJM Insurance Co.	NJM Insurance Co. offers a mature driver discount to drivers over a certain age who have taken a qualified course. Eligibility varies depending on the state, and you must upload your information for review at the site.
Shelter	Policyholders, who are at least 48 of age with a Shelter Insurance property policy, can get an auto insurance discount.
The Hartford	Through a partnership with AARP, The Hartford offers car insurance for seniors, including special features for policyholders over 50. AARP members also get up to 10% savings simply for being a member.
Farm Bureau - Indiana	Farm Bureau offers drivers ages 45 years old or older a lower rate in Indiana through their mature driver rates.
Farm Bureau - Kentucky	Farm Bureau in Kentucky offers discounts to drivers ages 55 or older who have completed an approved safety course. A certificate of completion is required.
Wawanesa - California	To be eligible for Wawanesa's discount, drivers must be 55 years old or older and have completed a defensive driving course approved by the California DMV within the last three years. Taking the course as part of a court order does not qualify you for the discount.

How Much Is Auto Insurance for Senior Citizens?

Auto insurance rates depend on several factors, such as your age, location and level of coverage. Once you qualify as a senior, insurance premiums tend to get more expensive, so it’s prudent to opt for discounts where possible.

After age, your level of coverage has the greatest effect only our rates. And each state requires a minimum level of coverage, which will not change as you grow older. You can use MoneyGeek's tool to estimate how much your auto insurance may cost.

Average Cost Of Auto Insurance For Senior Citizens

Auto Insurance Type	Cost
Minimum Liability Annual Cost	$797
Comprehensive/Collision (50/100/50) annual cost	$1,334
Comprehensive/Collision (100/300/100) annual cost	$1,454

MONEYGEEK EXPERT TIP

Review each company's product offers then narrow down your choices to 3-5. Ask for an online quote from each insurer to get a better understanding of each cost.

It's important to consider that the cheapest car insurance may not always be the best option for you. The best car insurance may offer better services, coverages, and financial security. And, if you take advantage of the discounts available, it can still be an affordable option.

Other Car Insurance Discounts Senior Citizens Can Use

Aside from senior-specific discounts, older drivers can find other car insurance discounts. These can include behavior-based, loyalty and telematics-based car insurance discounts for seniors.

Other Discounts For Senior Citizens

Discount	Best For
Customer Loyalty Discount	A customer loyalty discount grants you a percentage off your premiums for being insured by a company for a certain number of years. Best for seniors who have been insured with the same company for years
Accident-Free Good Driver Discount	Being a good driver and not having any accidents on your record for a certain number of years can grant you a discount through many insurers. Best for seniors with a clean record
Driver's education	Taking a driver’s education course at a DMV-approved center can get you a discount at many insurers. Best for seniors keen on taking driver education courses
Vehicle and Safety Equipment Discount	Having a safer car can lower your insurance premiums. If you have safety equipment such as airbags, anti-lock brakes and anti-theft systems, your insurer may grant you a discount. Best for seniors driving newer or safer vehicles
Pay in Full	Paying your auto insurance in full can save you a lot on premiums. Best for seniors who can pay a lump sum on their auto insurance
Military Discount	Being an active-duty military member or veteran can give you a discount through certain insurers. Best for seniors who are or have been in the military

Other Ways Senior Citizens Can Save on Auto Insurance

Aside from qualifying for discounts, seniors can save on their auto insurance by shopping around for quotes, bundling policies or increasing their deductibles. Occasional drivers can also try usage-based or pay-per-mile insurance, which charges you based on the number of miles you drive. Removing unnecessary coverage is also a way to lower premiums.

Shopping around for quotes

To find the cheapest car insurance company, it’s smart to shop around for quotes. Gather several quotes from different companies to compare your options.

Bundling policies

Getting a home and auto insurance bundle is a great way to save money on your premiums, as insurers like to reward loyal customers.

Increase deductibles

Your deductible is the amount you pay out of pocket before your insurance kicks in if you file a claim. The higher your deductible, the lower your premiums.

Pay-per-mile insurance

One form of car insurance for seniors is pay-per-mile insurance, which charges you based on the miles you drive. This is beneficial for those who drive fewer than 12,000 miles annually.

Drop unnecessary coverage

Removing comprehensive coverage is a practical solution if your premiums are worth more than 10% of your vehicle’s cash value. However, this can leave you underinsured. Determine how much auto insurance coverage you need before applying for a new policy or dropping any coverage.

Pay in full

While availing a no down payment car insurance will allow you to get insured with the lowest up front payment, paying in full will save you more money in the long run. Additionally, some insurance companies provide discounts for full payment.

Frequently Asked Questions About Car Insurance Discounts for Seniors

Finding car insurance discounts for seniors can be difficult if you don’t know where to start. Review the most frequently asked questions below to help guide you in your search.

Do seniors get a discount for car insurance?

Yes. Some insurers offer senior-specific auto insurance policies but often require that the driver take a DMV-approved driver safety course to qualify.

Bundling your insurance coverage or increasing your deductibles are some tips to help you save on insurance cost in addition to getting discounts.

How much can you save with a senior citizen auto insurance discount?

How much you can save with a senior discount depends on the insurer.

How much does auto insurance cost for seniors?

A minimum-liability policy costs an average of $797 for drivers aged 70 years old, while a full coverage policy with 100/300/100 in limits costs an average of $1,454 for the same driver.

What other discounts can you get for seniors?

Aside from qualifying for car insurance discounts for seniors, drivers can also opt to get other discounts not specific to their age. For instance, senior drivers can get a good driver discount, a customer loyalty discount, a vehicle and safety equipment discount or a military discount. Older drivers can also get a discount if they pay for their policy in full.

Many insurance companies also offer driver’s discount as a reward for completing a defensive driving courses but take note of the qualifying requirements and rules for each provider.

How else can seniors save on auto insurance aside from discounts?

To save on auto insurance, seniors can also compare quotes from different providers, bundle policies, increase their deductibles or purchase pay-per-mile insurance.

Learning about safe driving for seniors will also help direct you to the right path.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

Read Full Bio »