InSure

Retirement is the time of life when many people expect to slow down, reduce their responsibilities, and often see a reduction in their cost of living. Among the bills you can hope to see go down is your auto insurance rates, but what you might not know is that where you live can make a big difference in those rates.

What are the best states for cheap retiree auto insurance? Whether you’re staying put or planning to move and enjoy your retirement elsewhere, the cost of insurance for senior drivers differs quite a bit from state to state.

We’ve listed the cheapest states to buy auto insurance as a retiree by looking at average rates for senior drivers, available car insurance discounts, and even how easy each state makes it to qualify for a discount by taking a driving course.

The Top States to Save on Auto Insurance as a Retiree

For most people, retirement brings cheaper car insurance rates. That’s partly because you’re no longer commuting to work, and being on the road less puts you at a lower risk for an accident. That’s not the only reason, though.

Older drivers get lower rates thanks to their many years of experience on the road.

Although rates can increase for older seniors as the risks of impaired vision and slower reaction time increases the chance of an accident, when you first retire, you’re likely to see some of the lowest rates of your driving years to date. Auto insurance for seniors over 80 rises again for most people.

Where you live makes a difference as well. We looked at every state to compare them for the average cost of insuring a 60-year-old driver, and then added the number of discounts available to senior drivers in the state. We also ranked them based on the state’s requirement that insurance companies provide a discount for taking a driver education course, and whether that course could be completed online.

If you’re a retired driver, these are the best states to find cheap auto insurance rates.

The 12 Cheapest States for Retiree Auto Insurance

Which states are most affordable for retirees when it comes to auto insurance?

The states on our list are the cheapest for senior drivers overall. They also have plenty of older driver discounts offered by the top insurance companies and which have a government-mandated auto insurance discount for seniors.

#12 – Illinois

Average Monthly Cost of Senior Auto Insurance: $153
Number of Possible Senior Discounts: 7
Online Driver Education Permitted: No

Although Illinois doesn’t allow you to take your driving course online, the state does mandate a discount if you take a driver’s ed course like the AARP Smart Driver Course in person. And with a total of seven discounts available for senior drivers from the insurance companies serving the state, you have a lot of options to save.

The average rate for Illinois auto insurance is likely skewed by the high cost of insurance in Chicago. If you live outside the city, you’re likely to see even lower insurance costs.

#11 – Wyoming

Average Monthly Cost of Senior Auto Insurance: $152
Number of Possible Senior Discounts: 4
Online Driver Education Permitted: No

The wide-open spaces of Wyoming might call to you in retirement if you’ve lived in a city your whole life, or maybe you’re a lifelong resident and want to stay. Either way, the average cost of insurance for senior drivers here is lower than in most states.

There aren’t as many major insurance companies to offer discounts in Wyoming, but smaller companies might be able to help you as well. Taking a driver’s ed course in person guarantees you a discount on Wyoming auto insurance.

#10 – New Hampshire

Average Monthly Cost of Senior Auto Insurance: $145
Number of Possible Senior Discounts: 5
Online Driver Education Permitted: No

The average cost of auto insurance for senior drivers in New Hampshire is less than $150 a month, and an in-person driver education course will earn you a discount.

Most of the big insurance companies offer auto insurance in New Hampshire, and there are a good number of discounts available that can be stacked with your driver ed course discount.

#9 – Indiana

Average Monthly Cost of Senior Auto Insurance: $143
Number of Possible Senior Discounts: 6
Online Driver Education Permitted: No

Indiana’s average rate for retiree car insurance falls a little lower than the rates in New Hampshire, and the state adds an additional available discount. That earns it a place one spot higher on the list.

Indiana does have some big cities, but nothing on the scale of Chicago, which means the Indiana auto insurance average isn’t as skewed by big-city rates. There will still be some variation in the price you pay, of course, but Indiana has a lot of insurance companies large and small to choose from.

#8 – Iowa

Average Monthly Cost of Senior Auto Insurance: $137
Number of Possible Senior Discounts: 5
Online Driver Education Permitted: No

Iowa’s lack of really large cities allows the average rate for senior auto insurance to drop below $140 a month.

The cost of living here is generally more affordable than in many other states, which makes your dollar stretch a bit more in retirement.

Senior drivers in Iowa can save even more by comparing rates from not only the biggest companies but smaller options as well. Finding the best deal on Iowa auto insurance is likely just a matter of shopping around.

#7 – Wisconsin

Average Monthly Cost of Senior Auto Insurance: $136
Number of Possible Senior Discounts: 6
Online Driver Education Permitted: No

Wisconsin auto insurance rates for seniors are very nearly tied with Iowa, which indicates that the Midwest, in general, appears to be a cheaper place to insure a senior driver. A slightly lower average rate and a slightly higher number of available discounts land Wisconsin in the number seven spot.

Although you won’t be able to take the driver ed class online, the state does mandate a discount if you take it in person.

#6 – Alaska

Average Monthly Cost of Senior Auto Insurance: $134
Number of Possible Senior Discounts: 3
Online Driver Education Permitted: Yes

Good news for Alaska’s senior drivers: You don’t have to go anywhere to earn that driver’s education discount on your car insurance.

Alaska not only mandates a discount for taking a driving course, but also allows you to take that course online from home.

The average cost of Alaska auto insurance is low across the board, but senior drivers do very well here with an average cost of only $134 a month. And since Alaska has higher than average minimum coverage limits, that average rate buys more protection.

#5 – Washington State

Average Monthly Cost of Senior Auto Insurance: $130
Number of Possible Senior Discounts: 6
Online Driver Education Permitted: Yes

Washington state is a great place to retire whether you’re heading west to get away from cold winters or have been there your whole life. Auto insurance for older drivers is affordable, with an average rate of only $130 a month and six available discounts from the top companies.

Like in Alaska, seniors can get a discount on their Washington auto insurance for taking a driver education course either in person or online. Stack it with other discounts to save even more.

#4 – Idaho

Average Monthly Cost of Senior Auto Insurance: $127
Number of Possible Senior Discounts: 6
Online Driver Education Permitted: Yes

Idaho offers a low average car insurance rate for retirees along with a good list of discounts from the top insurance companies. The state also allows seniors to take a driver education course online or in-person to earn a discount.

Like some of the other states on our list, Idaho’s cities are on the smaller side. Not having large cities prevents an impact on the average cost of car insurance. That means the Idaho auto insurance average is applicable to a wider range of people without as much fluctuation.

#3 – Maine

Average Monthly Cost of Senior Auto Insurance: $127
Number of Possible Senior Discounts: 7
Online Driver Education Permitted: Yes

Maine is the cheapest state in the U.S. for car insurance, a fact made even more impressive by the state’s high minimum limits. Only Alaska has the same 50/100/25 minimum liability limits, but Maine auto insurance is still cheaper.

Maine also has the lowest percentage of uninsured motorists on the road, according to the Insurance Information Insitute (III).

Combine that with a hefty list of discounts and a driver education course that can be taken online for one of those discounts, and Maine is a great place for seniors to save on car insurance costs.

#2 – Ohio

Average Monthly Cost of Senior Auto Insurance: $119
Number of Possible Senior Discounts: 6
Online Driver Education Permitted: No

Although Ohio doesn’t allow drivers to take their course online to get a discount, the discount is mandated and you can earn it by taking the course in person. That’s more than made up for by an average rate for senior auto insurance of $119 a month.

Most of the big companies offer insurance here, which gives drivers a lot of choices and a lot of available discounts on Ohio auto insurance.

#1 – Virginia

Average Monthly Cost of Senior Auto Insurance: $112
Number of Possible Senior Discounts: 7
Online Driver Education Permitted: Yes

With an average rate of only $112 a month for senior drivers, seven available discounts from the top insurance companies, and the option to earn your driver education discount with an online course, Virginia tops our list.

Virginia is also one of the states in which pay-per-mile auto insurance from companies like Metromile is available. For seniors no longer driving much, that can mean a much cheaper rate.

Of course, Virginia auto insurance rates vary from person to person, and you’ll need to shop around to see what you’ll actually pay. But if you live and drive in Virginia, retirement will bring you the cheapest average rates of any state.

Complete Results: U.S. Retiree Auto Insurance Cost and Perks

The map below shows how every state scored in our study based on the average cost of car insurance for retired drivers, discount availability, and the ease of taking a driver education course to qualify for reduced rates.

The most expensive state for retired drivers is Michigan. That’s not surprising, since Michigan has ranked among the most expensive states for car insurance overall for years.

States with no-fault insurance such as Michigan and Florida have higher average auto insurance rates for all ages.

Somewhat more surprising is Delaware’s rank as the second most expensive state, since it’s a small state that’s not generally known for high insurance costs.

Frequently Asked Questions: Senior Auto Insurance

If you have more questions about senior car insurance and which states offer a low cost of living, take a look below.

#1 – What’s the best auto insurance for senior citizens?

The best car insurance for senior citizens will depend on a lot of factors, so there’s no one company that’s the best pick for everyone. There are some companies that cater to seniors more actively, however.

The Hartford’s AARP-sponsored insurance program is a popular pick, and the AAA auto insurance senior discount is also well known. There may also be smaller local companies near you that can provide cheap car insurance for those 50 and over.

#2 – What is the cheapest and safest state to live in?

Mississippi has the lowest cost of living of all 50 states, according to World Population Review. When it comes to the safest state, however, Statista names Maine the safest with the lowest crime rate.

Maine also has the lowest car insurance rates in the nation and landed at number three on our list for cheap senior car insurance.

#3 – What company has the cheapest auto insurance for seniors?

Finding both the best and cheapest auto insurance means finding a combination of low rates and great coverage. Frequently, GEICO insurance for seniors is low in cost, and the company has a solid reputation. That said, shopping around will turn up the cheapest rates for you.

Bundling car and house insurance for seniors is a quick way to reduce rates on both and simplify your life by keeping everything in one place. Take a look at some of the other factors that affect auto insurance rates and car insurance rates by age chart to make sense of the rates you’re being quoted.

Methodology: Ranking States by Cheap Retiree Auto Insurance

To determine which states have the cheapest car insurance rates for retired drivers, we started with the average cost of auto insurance for drivers aged 60 years old in each state. Those rates were sourced from Quadrant Data Solutions.

We then gathered discount information from the company websites of the largest car insurance companies in the country and counted how many discounts were available in each. The total of the discounts available was based on which of the top companies offer coverage in each state.

Finally, we checked state law to determine which states mandate a discount for senior drivers that take a driver education course, and which of those states allow the course to be taken online.

Cheap Auto Insurance

15.03.2021 /