Lifestyle   Money
By Consumer Team | 03 Oct. 2022

Low Car Insurance Rates for Seniors: Pay Per Mile Discounts & Offers

Are you a senior looking for cheaper car insurance rates? Do you drive less nowadays and want to only pay for what you drive? Check out our guide to car insurance deals for seniors below.

As you gain experience on the road, car insurance rates typically decrease. However, as you reach retirement, you may notice rates start to climb. That can be frustrating, especially as you’re considering living on a fixed income.

When shopping for car insurance as a senior, there are a few things to look for. First, some insurers offer discounts specifically for seniors, starting around age 50. Discounts can vary based on your age, type of vehicle, and driving history, and may have additional requirements, such as not having any under the age of 25 on your policy. Additionally, there are other discounts seniors can take advantage of:

  • Safe driver: If you have a history of being accident-free, many insurers offer a discount.

  • Vehicle safety: Newer vehicles with safety features like anti-collision technology may qualify for a discount.

  • Multi policy: If you have multiple auto policies, or home or life insurance, many insurers offer a discount for bundling policies with them.

Drive Less, Save More

You’ll likely be driving less as you get older, so you might consider switching to a car insurance program that charges you based on your mileage or driving behavior.

These programs typically ask you to plug a device into your car or connect to an app on your phone to track your driving. The insurer then adjusts your rates or offers you a discount based on that information.

Let’s take a look at these programs and what each of these major car insurance companies offers for senior drivers.


If you prefer working with someone in person, Allstate gives you access to local agents who can discuss your options and available discounts. They also offer several benefits for seniors and have two different usage-based insurance programs that may be appealing.

Usage-based programs

Milewise:You pay a small daily base rate, and a per-mile rate when you drive. It provides transparency in its cost and is ideal for those who drive less than 10,000 miles a year.

Drivewise: The mobile app tracks your driving behavior and rewards you with cash back for every 6 months of safe driving related to your speed, braking, and other behaviors.


In addition to these two types of usage-based insurance, drivers can earn savings, deals, and gift cards through Allstate Rewards. You can also get $100 off of your deductible for each year of accident-free driving (up to $500) through their Deductible Rewards. If something does happen, Allstate is the only car insurer with a free claim satisfaction guarantee (available in most states), which credits your previous 6 months of premium for that car if you are unhappy with your experience.


It may cost more to work with an agent than if you buy online, and not all programs and discounts are available in all states. For example, Milewise is only available in a limited number of states.


The company is regularly named as one of the top insurers for customer satisfaction. As a mutual company, owned by its policyholders (and not shareholders), they return dividends in addition to offering discounts.

Usage-based programs

Flexmile:The company experimented with this no base cost, pay only for the miles you drive, program in Oregon. However, it appears to have suspended the program in 2020.


In addition to benefits like dividends and standard discounts like accident-free savings, Amica offers a few extra ways seniors can save. New customers get a discount if they switch from an insurer they’ve been with for more than 2 years, and if the time with your previous insurer and Amica equals more than 6 years, you can save up to 10%. Seniors can also take a defensive driving course to earn an additional discount.


The lack of a usage-based program is a real disappointment, especially for seniors who are driving less and want this option. While Amica is well-known for its customer service, the company does not use local agents, so you’ll have to use the web, phone, or email to have direct contact with a representative.


The second largest car insurance company in the U.S. is well-known for great rates. That’s because they offer a long list of discounts, including some for those over the age of 50. Although the company sells policies direct via its website and by phone, it has scored high customer ratings.

Usage-based programs

DriveEasy:Available via the GEICO mobile app, it scores your distracted-free driving, braking, and turning speed. The safer the app rates your driving, the more of a discount you can receive.


For those over 50, GEICO offers guaranteed renewals through its Prime Time contract (available in 30 states), which can be beneficial if you’re worried about being dropped after a couple crashes. They also offer discounts for membership in various college alumni and professional groups, the military, and other organizations. In many states, they also offer a discount for taking a defensive driving course.


While they offer some discounts for reduced annual miles, and the DriveEasy program can help you save money by being a safe driver, GEICO does not offer a pay-per-mile program. Also, similar to other insurers without agents, customer service is primarily online or on the phone.


The company has grown to become the third largest insurer by helping people who focus on price and want to easily compare prices. They are also transparent with their data, showing how age impacts insurance rate.

Usage-based programs

Snapshot:You can use either a device that plugs into your car or their mobile app. It measures when, how much, and how you drive, and adjusts your rate at the renewal period based on your results.


If price is your motivation, when you get a quote at Progressive they will compare their rates to competitors to help you find the best price. Their Name Your Price tool is great if you’re on a fixed income, since it lets you enter the amount you want to pay and then shows what coverage you can get in that price range. For safe drivers, Snapshot can save you money off of your base rate.


Snapshot can also cause rates to go up, which can result in an unexpected cost. While the company makes shopping for car insurance easy, if something happens, their claims satisfaction scores have been below average on industry surveys.

State Farm

The largest car insurer in the country has also been well ranked for customer service and claims satisfaction, primarily because more than 19,000 State Farm agents offer local, personalized service. Additionally, the company is known for competitive rates, so you’re not necessarily paying a lot more for good service.

Usage-based programs

Drive Safe & Save:Your can either use your phone to connect to a device in your car, or if your vehicle is equipped with it, OnStar. It tracks your mileage and driving behavior and gives you discounts off of your base rate from that information.

Benefits The company has been known for its service, and if you prefer help in-person, there’s likely a State Farm agent nearby. With Drive Safe & Save, you can save up to 30%, which is among the most generous usage-based discounts of all insurers. Like a few other insurers, you can also get discounts for an accident-free history, multiple policies, loyalty, and for taking a driver training course.


With a focus on interactions with agents, the online experience isn’t always as smooth as competitors who focus their business on phone and online engagement. Additionally, their Drive Safe & Save program is not available in all states.

The Best Choice for Seniors

The right choice depends on your circumstances and lifestyle. Insurance is regulated by each state, so prices, discounts, and other offers frequently vary based on where you live. Some people may want to do business online, and others may want to sit down with someone to discuss their needs. Others are more concerned with price, and may not worry as much about service. Shop around, ask about discounts for seniors, and talk with as