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Senior Drivers and Auto Insurance Rates
Senior drivers pay some of the lowest car insurance rates of any age demographic, which is good news if you’re entering your golden years. But auto insurance costs in the U.S. have spiked around 54% since 2020, according to the U.S. Bureau of Labor Statistics.
Currently, the national average monthly rates for seniors sit at $162 and $85 for full coverage and liability only, respectively, according to Insurify data.
Home insurance rates have also climbed recently. The national average is currently $3,259 annually, and Insurify data scientists project rates will climb another 8% in 2025.
Bundling your auto and home insurance can help cut your costs. You can also compare rates from different insurers.
Best home and auto insurance companies for seniors
| Insurance Company | IQ Score | Bundled Annual Average* | Bundling Discount |
|---|---|---|---|
| Erie | 8.4 | $2,101 | 15% |
| State Farm | 9.3 | $1,785 | Up to $1,356 |
| Country Financial | N/A | $3,549 | Up to 30% |
| USAA | 9.1 | $2,854 | Up to 10% |
*Disclaimer: Table data is based on real-time quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
How bundling works to save seniors money
Bundling discounts are common, and they reward policyholders for their loyalty. While home and auto coverage is a common bundle, some insurers may also offer discounts for bundling renters and car insurance or other types of policies, like life or pet insurance.
Should you bundle your home and auto insurance?
Bundling your home insurance policy with your auto insurance has advantages and disadvantages. On one hand, bundling typically gives you a significant discount. You also enjoy the convenience of paying your premiums in one place.
But it’s important to compare insurance rates from different companies if you’re thinking about bundling. It’s possible that a lower-cost policy from another insurer may provide more cost savings than a bundling discount.
How seniors can save on auto and home insurance
If you decide bundling is a good way to save money, consider shopping around for coverage with multiple insurers. This could mean switching your current coverage, but the potential cost savings might be worth it.
Other options for reducing your insurance costs include:
- Increase your deductible. Both your full-coverage auto and home insurance policies have deductibles. Opting for higher deductibles can reduce your monthly or annual premiums, though you’ll pay more if you need to file a claim.
- Access discounts. Many insurers offer discounts for both auto and home insurance. For example, you could get a discount if you don’t drive often, take a defensive driving course, or install certain safety features in your home. And you may get a multi-policy discount for buying two or more types of insurance policies from the same company.
- Reduce your coverage. If you drive an older, low-value car, you might consider removing your collision coverage and comprehensive coverage. Removing these will reduce your premium. But if you cause an accident that damages or totals your car, your insurance won’t pay to repair or replace your vehicle.
- Compare home and auto bundles. Comparing home and auto bundles could also help you save money.
Best home and car insurance bundle for seniors FAQs
- You’ll likely lose your bundling discount if you cancel one of your bundled policies. But different insurers may have different ways of handling this. If you have questions about dropping a bundled policy, contact your insurance company directly.
- Bundle discounts vary by insurance company. Different insurers offer different opportunities to save. For instance, Erie offers a discount of 15% or more, COUNTRY Financial’s discount is up to 30%, and USAA offers a discount of up to 10%.
- Car insurance is generally less expensive for senior drivers than for other age demographics. But rates increase slightly around age 70, as accident risks increase for older drivers.