Updated
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. Senior drivers currently pay monthly averages of $86 for liability car insurance and $162 for full coverage.
But auto insurance costs in the U.S. have spiked around 54% since 2020, according to the U.S. Bureau of Labor Statistics.
A record 12.5 million seniors spent more than 30% of their monthly income on housing costs in 2024, according to USA Today. And home insurance rates continue to climb. The national average is currently $2,772 annually, and Insurify data scientists project rates will climb another 4% by the end of 2026.
Even though costs are rising, bundling your home and auto policies with the same company can save you anywhere from 10% to 25% per year. Here’s what you should know about home and car insurance bundles for seniors.
NJM offers the cheapest auto insurance rates among the companies analyzed. Its average liability-only rate for seniors is $27 per month.
While bundling home and auto is the most common type of insurance bundle, you can also save money by bundling other types of policies, like pet or life insurance.
Sometimes switching to a new insurer could save you more than a bundling discount.
Best home and auto insurance companies for seniors
Insurance Company | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | Bundled Annual Average* | Bundling Discount |
|---|---|---|---|
| The Hartford | 8.3 | $3,296 | Nearly $1,000 |
| 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% |
How we calculated bundled annual average
To estimate the average annual cost of bundled home and auto insurance, we added each insurance company’s annual average cost of car insurance for seniors and its average annual cost of homeowners insurance for a policy with $300,000 in dwelling coverage. We then applied the insurer’s publicly stated discount amount to the total average to arrive at the bundled average.
The Hartford: Best for AARP members
| User Reviews | 4.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $132/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $229/mo |
The Hartford's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.6 | 2.9 |
Drivers appreciate the prompt customer service and reliable coverage but are frustrated by the significant annual price increases and limited policy options.
The AARP partners with The Hartford to offer auto and home, condo, or renters insurance bundles to AARP members. The Hartford says bundling can save you nearly $1,000. You may be eligible for additional discounts to save even more, such as discounts for adding a burglar alarm or installing fire sprinkler systems.
Bundling can save you nearly $1,000 per year
Manage multiple policies in one place
Can work with a single insurance agent to tailor your coverage
Must be an AARP member to be eligible
Below-average JD Power customer satisfaction ratings in multiple regions
Accident forgiveness and disappearing deductible not available to California seniors
Erie: Best overall
| User Reviews | 4.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $66/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $116/mo |
Erie Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 4.4 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 4.2 | 3.1 |
| Value | 4.0 | 2.9 |
Customers appreciate the insurer’s excellent customer service and quick claim handling but are dissatisfied with the unexpected and unexplained rate increases. Some also found the policy details hard to understand.
Erie offers affordable coverage, a lower-than-average number of customer complaints, and a high customer satisfaction rating. It also offers numerous senior-friendly savings options and perks, like a diminishing auto deductible for every year you remain claims-free.
For all these reasons, we’ve chosen it as our pick for best overall insurer for seniors interested in bundling their home and auto coverage.
Bundling discount: 15% or more
AM Best financial strength rating of A+ (Superior)
Low rates compared to competitors
Transparent about bundling discount percentage
Only available in 12 states
Can’t file a claim online
Fewer discounts than some competitors
State Farm: Best for low-mileage drivers
| User Reviews | 4.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $54/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $103/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 4.4 | 3.6 |
| Discounts | 4.0 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.9 | 2.9 |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
State Farm could be a good option if you don’t drive long distances. Not only does this insurer offer relatively low average rates for coverage, but you can also save up to 30% by enrolling in its Drive Safe & Save program. This program gives you a combined discount for low mileage and safe driving behaviors.
Bundling discount/claim: Up to $1,356
Generous safe driving discount
Available in almost all states
Can file a claim online
Gap insurance not available
Higher rates than some competitors
Fewer discounts than some competitors
Country Financial: Best for low auto rates
| User Reviews | 4.1 |
|---|---|
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $47/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $92/mo |
Country Financial's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.5 | 2.9 |
Customers appreciate the prompt claims service and personal touch but are frustrated by the constant rate increases and lack of discounts.
If cheap auto coverage is a top priority for you, Country Financial is worth a look. This insurer offers significantly lower rates, with senior drivers paying an average of $34 per month for auto insurance coverage. That said, its home insurance rates are fairly high, so if you’re planning to bundle, it’s important to compare quotes from other insurers to ensure you’re getting the best deal.
Bundling discount: Up to 30%
AM Best financial strength rating of A+ (Superior)
Extremely low auto insurance rates
Several discounts available
Higher home insurance rates than some competitors
Only available in 19 states
Low Trustpilot rating
USAA: Best for customer service
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $53/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $102/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
USAA is a good company to consider if you’re a veteran. This insurer offers policies exclusively for active-duty military members, veterans, and eligible family members. J.D. Power consistently gives USAA high marks for customer satisfaction.
Bundling discount: Up to 10%
Low-mileage discount available
Transparent about bundling discount percentage
Safe driving discount of up to 30% in eligible states
Only available to members of the military community
Fewer discounts than some competitors
Higher-than-average number of customer complaints for auto insurance
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.
Around 7 million seniors aged 65 and older rent their homes, according to data from Harvard University’s Joint Center for Housing Studies.[1] Seniors who bundle a renters policy with an auto policy could save 5% to 25% on average, according to Insurify data.
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Should you bundle your home and auto insurance?
Bundling your home insurance policy with your auto insurance has advantages and disadvantages. On the one hand, bundling typically gives you a significant discount. You also have 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.
These are some other options for lowering your insurance costs:[2]
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. Insurance rates vary by company, and so do bundling discounts and rates.
Find Savings with a Home/Auto Insurance Bundle
Unlock discounts and savings when you compare quotes
More auto insurance discounts for seniors
Beyond bundling, many car insurance companies offer a range of discounts for policyholders. Other common car insurance discounts that could benefit seniors include:
Good driver discount: Many insurance companies offer good driver discounts for people with no recent driving infractions, such as at-fault accidents, speeding tickets, or other moving violations.
Low-mileage discount: If you’re driving less in retirement, ask prospective insurers about a low-mileage discount. You can save on your auto insurance by driving fewer miles.
Defensive driver discount: Many insurance companies also offer a defensive driver discount if you take a safe driving course. This could be a good opportunity if you can find this type of course in your area.
Paid-in-full discount: You can also save by paying for your policy in full annually, as opposed to paying your premiums monthly.
Discount opportunities vary by insurance company, so ask prospective insurers which discounts they offer. Many also advertise potential savings on their websites.
More homeowners insurance discounts for seniors
Many insurers also offer opportunities to save on your homeowners insurance as a senior. Common home insurance discounts that could benefit you include:
Loyalty discount: You could be eligible for a loyalty discount on your home insurance if you bundle your policies or have maintained the same coverage with the same insurer for several years.
Retiree discount: Some insurers may also offer a retiree discount that lets you save on homeowners insurance in your golden years.[3]
Paid-in-full discount: As with car insurance, you could save on your homeowners insurance if you pay your full premium annually instead of monthly.
Home security features discount: Many insurance companies offer a discount to people who install safety features in their home, such as home security systems with an alarm, motion sensors, and surveillance cameras.
Again, discount options differ depending on the insurance company. Shopping around with multiple insurers is the best way to find a set of discounts that aligns with your situation.
Best home and car insurance bundle for seniors FAQs
If you’re still wondering about bundling home and car insurance, here are some common questions and answers.
What happens if you cancel one of your bundled policies?
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.
How much can you save by bundling?
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%.
Do auto insurance costs increase with age?
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.[4] That said, your insurance rates will vary depending on your driving history, ZIP code, gender, and other factors.
How much does homeowners insurance cost for seniors?
A homeowner’s age doesn’t affect their home insurance premiums, although the age of their home does. Many other factors affect home insurance costs, including where you live, the size and condition of your home, and, in some states, your credit. On average, homeowners insurance costs about $2,772 annually for a policy with $300,000 in dwelling coverage and a $1,000 deductible, according to Insurify data.
What company has the cheapest auto insurance for seniors?
NJM is the insurance company with the cheapest liability car insurance for seniors. Its average monthly cost for drivers in their 60s is $27.
What insurance company does the AARP recommend?
The AARP doesn’t recommend one single auto or home insurance company for seniors. But the AARP partners with The Hartford to provide auto, home, and renters insurance to its members.
Can you bundle home and auto insurance with different renewal dates?
Yes. It’s possible to bundle home and auto insurance policies with different renewal dates. But if you prefer both policies to renew on the same date, your insurance agent can help you streamline the process.
Can seniors bundle renters and auto insurance?
Yes. Seniors who rent rather than own their homes can bundle a renters insurance policy with their auto insurance policy. Bundling renters and auto policies together can save you anywhere from 5% to 25%, according to Insurify data.
Sources
- Harvard University Joint Center for Housing Studies. "Housing America's Older Adults 2023."
- Insurance Information Institute. "Nine ways to lower your auto insurance costs."
- AAA. "5 Discounts to Lower Your Home Insurance Premium."
- Centers for Disease Control and Prevention. "Older Adult Drivers."