Retirement changes a lot of things about daily life, and driving is one of them. Maybe you commute less, take more trips for pleasure, or share one car with a spouse. Your car insurance should change with you. Many drivers over 55 keep paying the same premium they always did, simply because nobody suggested they look again. This guide explains how age affects pricing, which discounts are worth asking about and how to keep your protection strong without overpaying.
How age affects car insurance prices
For most drivers, premiums fall through their thirties, forties and fifties as experience builds. For some, prices begin to rise again in the late sixties or seventies. The reason is statistics, not your personal driving skill. The Insurance Institute for Highway Safety reports that fatal crash rates per mile driven start to climb at around age 70 and rise more steeply after 80, and older drivers are more likely to be seriously hurt when a crash does happen because their bodies are more fragile. Insurers price by group, so a careful senior with a spotless record can still see an increase.
Age is only one factor, though. Your driving record, your car, your ZIP code, how many miles you drive and the coverage you choose all matter. Many older drivers have decades without a claim, and some companies reward that heavily. That is why the same senior can be quoted very different prices by two insurers.
Discounts worth asking about
- Mature driver or defensive driving courses. Approved courses, such as the AARP Smart Driver course or other state-approved classes, can earn a discount. Several states, including New York and California, require insurers to give a discount to eligible drivers who complete one. Ask your insurer which courses it accepts and how long the discount lasts.
- Low mileage. If you no longer drive to work, tell your insurer. Annual mileage is a rating factor, and a big drop can lower your price.
- Retired status. A few companies offer a small discount for retirees, so it is worth asking.
- Bundling and multiple cars. Combining home, renters or a second vehicle with one company often reduces the total.
- Safety and anti-theft features. Airbags, anti-lock brakes, automatic emergency braking and an alarm can all help.
- Claim-free and safe driver rewards. Long, clean histories should be reflected in your price.
- Paying in full or going paperless. Small savings add up over the policy term.
Our page on auto insurance discounts lists more.
Rethink your coverage after retirement
When your driving habits change, your coverage may need a fresh look. A few points deserve special thought.
Do not shrink liability too far. Many retirees have savings, a home and retirement accounts that a lawsuit could put at risk. Liability limits protect those assets, so lowering them to save a few dollars a month is rarely wise. If you have significant assets, ask about an umbrella policy. Our guide to how much car insurance you need explains how to think about limits.
Check collision and comprehensive on an older car. If your car is worth only a few thousand dollars and you could replace it from savings, the yearly cost of collision and comprehensive may no longer make sense. Read whether full coverage is worth it before deciding.
Look at medical coverage. Medical payments or personal injury protection helps with injury costs after a crash, whoever is at fault. If you have Medicare, ask how it works alongside your auto policy, because in many cases auto medical coverage pays first. A licensed agent can explain how the two fit together.
Keep uninsured motorist coverage. Roughly one in seven U.S. drivers is thought to be uninsured, according to the Insurance Research Council. This coverage protects you if one of them hits you.
Pay-per-mile and usage-based options
If you drive very little, a usage-based or pay-per-mile program may cost less than a standard policy. These programs track your mileage, and sometimes your braking and speed, through a plug-in device or phone app. They suit people who drive a few thousand miles a year. Read the terms carefully, since poor driving scores can raise a price with some programs, and check what data is collected and shared.
Keep your driving safe, and your record clean
Staying safe on the road also protects your premium. Safety groups such as the IIHS suggest a few habits:
- Have your vision and hearing checked regularly.
- Talk to your doctor or pharmacist about whether any medicines may affect driving.
- Take a refresher course, which also may earn a discount.
- Avoid driving at night, in heavy rain or at rush hour if those conditions make you uneasy.
- Choose a newer car with modern safety features when it is time to replace yours.
Common questions from older drivers
Will my rate go up just because I turn 70? It may, but not always. It depends on your insurer, your record and your state. Comparing quotes is the best way to find out.
Can my insurer drop me because of my age? Many states limit insurers from cancelling or refusing to renew a policy only because of age, but rules differ. Your state’s department of insurance can tell you what applies where you live.
Should I keep my policy if I drive less? Yes, as long as you own a car and drive it. If the car is parked for a long time, our guide to parked car insurance explains your options.
How to compare quotes
Get at least three quotes with the same coverage and deductibles, and ask each company which discounts apply to you. Our article on how to compare car insurance quotes walks you through it, and seven ways to lower your premium has more ideas. If you are on a tight budget, see no down payment car insurance too.
A few minutes of comparing can save real money every year. Compare quotes and see what is available for you.
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This page is for general information only and is not insurance, legal or financial advice. Coverage, rules and prices vary by insurer and state.