Consumer Reports Says These Are The 5 Best Car Insurance Companies For Seniors

As rates to insure autos continue to rise, retirees may be looking for the best ways to save money on car insurance. But if you're considering switching to a new provider to obtain a lower price, you might be wary of making the switch because you don't want to sacrifice customer service. If you are a senior who already trusts the independent, non-profit organization Consumer Reports for finding the most reliable products based on testing and research, it makes sense to use the organization for researching senior-friendly car insurance. 

Consumer Reports recently surveyed 40,000 policyholders of all ages across the United States, asking them whether they were satisfied with their policies. When split out by age, the survey discovered that seniors aged 65 and over have different preferences for their auto insurance than people in other age brackets. USAA topped Consumer Reports' list of the best auto insurers for seniors, followed by Amica, Erie, NJM, and Mercury. These rankings are different from Consumer Reports' list of the best auto insurers for drivers of all ages, which was led by Erie.

Car insurance is normally cheapest when you reach the age bracket of the mid-60s to mid-70s, so seniors already pay a bit less than their younger counterparts. However, it never hurts to find ways to save even more money while still receiving strong features and customer service. Below, we take a closer look at Consumer Reports' top five car insurance companies for seniors.

In the Consumer Reports auto insurance satisfaction survey for all ages, USAA Group received a "CR Recommended" designation. Meanwhile, in the survey of seniors, an impressive 86% of respondents were completely satisfied or very satisfied with their USAA policies, placing the company at the top of the list. 

Although USAA, short for United Services Automobile Association, did not receive a perfect score in any category in the Consumer Reports all-ages ratings, it received above-average scores for customer service, thoroughness of policy reviews, advice on policy decisions, clarity of policy options, claims help, and coverage choices. Other surveys give USAA high marks for the ease of filing a claim and receiving a claim resolution. USAA ranks among the cheapest auto insurance companies, according to a NerdWallet survey, providing below-average rates for both full and liability coverage.

There's a caveat, however, since only seniors with a military background are eligible to purchase USAA's policies. Generally, active U.S. military personnel and veterans can apply to become customers, along with some family members. If you are deployed and storing your vehicle on the base, USAA ranks as one of the best places to use a military discount on your insurance coverage costs.

According to the Consumer Reports survey of seniors, 84% were completely or very satisfied with their policies from Amica Mutual Group. Amica has a "CR Recommended" designation and receives a perfect score in claims resolution and clarity of policy from people of all ages who participated in a Consumer Reports survey. It has above-average scores in customer service, policy decision help, options for coverage, and thoroughness of policy reviews. A U.S. News & World Report review gives Amica high scores for its customer service performance, which may be a big selling point for seniors, who generally prefer speaking to human representatives instead of using digital solutions to resolve problems.

Seniors in Hawaii are not able to purchase Amica auto insurance, but it's available in the other 49 states. Amica is especially popular in the New England region, where a J.D. Power U.S. Auto Insurance Study showed Amica had the highest customer satisfaction score. 

Amica gives its best rates to drivers who have high credit scores, which is beneficial for seniors, who tend to have above-average credit scores. Amica did not make the list for NerdWallet's ranking of the cheapest car insurance companies. That said, it does offer more senior-friendly deals than its competitors, including discounts up to 30% for bundling homeowners', life, and auto insurance policies.

Ranking third on the Consumer Reports list is Erie Insurance Group, which received an 80% "very or completely satisfied" ranking from its senior customers. In Consumer Reports all-age rankings, Erie earned the top spot and a "CR Recommended" designation. Respondents of all ages give Erie a perfect score in claims handling and above-average scores in policy coverage options, clarity of coverage, customer service, advice on policy options, and helpful reviews of policy coverages. Erie claims to have a 90% retention rate among its auto and home insurance customers.

Erie does have a limited coverage area, as it only serves 12 states in the eastern half of the United States. Specific features and advantages that Erie offers that may appeal to seniors include waiving deductibles in certain claims and providing pet injury coverage for seniors and other people who take trips with their pets. 

Studies show that elderly drivers are more likely to receive moving violation tickets than younger drivers for things like running stop signs or turning improperly. If you're a senior driver with some tickets on your record, Erie tends to offer lower rates than competitors.

Among seniors who participated in the Consumer Reports survey, 78% of customers of NJM Insurance Group gave the company a completely or very satisfied score. Meanwhile, drivers of all ages placed NJM in a tie for second place with Amica. NJM, which holds a "CR Recommended" designation, received above-average scores in every category other than premium cost, where it got an average score. NJM did not receive perfect scores in any category, though.

Seniors may especially appreciate NJM's option for add-on coverage for 24/7 roadside assistance. Senior drivers may have physical limitations that make it impossible to self-repair their vehicle along the side of the road. For example, some may lack the strength required to change a flat tire, making roadside assistance a valuable service option. Other roadside services available include lock-out help, fuel delivery, towing, and jump starts.

NJM is the most restrictive auto insurance provider on the Consumer Reports list, as it's only available in five eastern states. It does not offer a mobile app for policy management, but seniors might not care about that missing option. Although you can report an auto claim 24/7 by phone with NJM, its customer service team is not available overnight and has very limited weekend hours.

Mercury General Group had the biggest difference in satisfaction scores between senior drivers and their younger counterparts, according to Consumer Reports. Among seniors, Mercury had a 76% "completely or very satisfied" rating, ranking fifth. However, Mercury ranked in the lower quartile of the 36 insurance providers Consumer Reports ranked based on a survey of policy holders of all ages. Mercury received average scores in coverage options, clarity of policy, claims resolution, help with policies, and the thoroughness of reviews of policy coverage options. It received below-average scores in customer service.

For seniors, one of Mercury's biggest benefits is the optional roadside coverage that you can add to your policy. You can receive towing, lock-out help, battery jump starts, fuel delivery, and flat tire changing with this coverage.

Not all seniors will be able to apply for a Mercury policy, as it is only available in 11 states. The company focuses on states with large populations, like California, Texas, Florida, and New York. For seniors who live in California, Mercury offers some of the most affordable auto insurance rates. If you're a senior driver who only needs basic coverage, Mercury has policies at favorable prices throughout its coverage area.