You’ve come a long way since you passed your driver’s test and you should be rewarded for staying safe on the roads. Now that you’ve retired or are approaching retirement, your car insurance rates are likely to go down for a number of reasons.

With discounts specifically offered to retirees, you’ll have more money to spend on special projects and good times: renovate your home, go on vacation, or pick up that special hobby. By saving more on your auto insurance, your retirement years can be truly a golden time!

Remember that if you want to save the most money possible on your auto insurance policy, you’ve got to regularly compare quotes from a range of different insurance providers. Thanks to Insurify, comparing quotes is a fast and easy process.

Best Car Insurance Companies for Retired Drivers

Retirement is a major life change. As a result, you’ll want to review your entire financial situation, including your insurance. 

Now that you’ve retired or are about to retire, your existing auto insurance provider may no longer be the best choice for you. A few auto insurance companies offer special programs that are a great way for retirees to get just the right insurance for them, often at a lower price.

This is not to say that these are the only insurance companies that retirees should consider, just that it’s probably worth your while to investigate these programs to see if they can improve your insurance situation.

Allstate

Allstate offers its customers complimentary financial reviews, which can be especially helpful during a lifestyle transition like retirement. Your local Allstate financial representative can assist with financial planning in areas besides insurance, including advice for managing your IRA.

Allstate also has a special discount called “55 and Retired.” As you may have guessed from the name, if you are retired and at least 55, you can qualify for this discount.

GEICO

GEICO has a special program for drivers age 50 and up called the Prime Time contract. This contract gives guaranteed renewal to qualifying customers. To claim the Prime Time contract, you have to be at least age 50, have no drivers under the age of 25 on your policy, no violations or accidents in the past three years, and no business use of your vehicle. Prime Time contracts are currently available in these states: Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Mexico, North Dakota, Ohio, Oregon, South Carolina, Tennessee, Utah, Virginia, Washington, West Virginia, and Wisconsin. 

The Hartford

The Hartford has partnered with AARP to provide special benefits on auto insurance and homeowners insurance for AARP members. These benefits include a 12-month rate lock on auto insurance, lifetime car repair assurance, lifetime renewability for auto insurance, and the RecoverCare program—which reimburses AARP members for essential home services that they need after having been in a covered auto accident. RecoverCare even pays for things like grocery delivery while you can’t drive and dog walking services if you’re not able to walk the dog yourself.

Cheapest Auto Insurance Quotes for Retired Drivers

Retirees will often find that their auto insurance rates drop significantly, both because they qualify for more discounts and because they are driving less (thanks to no commute) and are considered lower risk drivers. Here are some examples of low auto insurance quotes for retired drivers.

Insurance CompanyLowest Rate
MetLife$24/month
Clearcover$24/month
Infinity$27/month
Metromile$27/month
Bristol West$28/month

Best Auto Insurance Discounts for Retired Drivers

Despite what you may have heard, aging definitely has its benefits especially when it comes to saving money on your car insurance. 

Insurance providers begin to offer senior discounts to their customers somewhere around the age of 50. This discount is a general percentage taken off of your premium for reaching a certain age set by the provider. Luckily, this discount comes at a time when older drivers are looking to retire or put their children through college. So wherever you are in life at age 50, you’ll have savings to spend however you wish. Here are some other car insurance discounts you could receive.

Retired Drivers vs. Others: Who Pays More?

Retired drivers often pay less for auto insurance than any other group. That’s because they often have an excellent driving record and are generally considered to be a low-risk group by insurance companies. Compared to minors and new drivers, you’ll save a bundle thanks to your extensive driving experience.

Car Insurance Tips for Retired Drivers

To get the best deal on your retiree car insurance policy, make sure you’re implementing one or more of the following tips. The more of these steps you take, the more likely you are to get the best possible deal on your auto insurance.

Commuting and Driving Post-Retirement 

  • If you’re driving fewer miles, consider raising your deductible so that your monthly premiums become lower. It’s smart to choose the highest possible deductible that you can afford, but it’s important to figure out how much you can actually afford to pay out of pocket if you have to at a moment’s notice.
  • If you no longer drive yourself very often and have a relative drive for you, consider changing the primary driver on your policy. Having a younger primary driver may lower your premium.
  • Additional coverages, such as collision or comprehensive, may no longer make financial sense if you’re driving significantly less than you used to when you worked full time. Decreasing or dropping these coverages altogether will lower your premium.
  • Don’t forget to tell your insurance company that you’ve retired. Making this tiny change to your reported employment status can result in significant savings.
  • Consider taking a defensive driving course so that you can qualify for a safe driver discount. This can help keep your rates low as you get older.

Navigating Your Living Situation as a Retired Driver:

  • If your home is located in an area with high rates of traffic or crime and you’re concerned about your vehicle being stolen or damaged, you may want to keep comprehensive or collision coverages on your policy. Insurance companies use your location to assess rates. Buying an anti-theft device or tracking device can unlock discounts.
  • One of your retirement projects could be cleaning out the garage so that you can store your vehicle in it. Garaging your vehicle may lower your insurance rates since it reduces the risk of theft or vandalism.
  • If you move to a gated retirement community or one that has on-site security, be sure to mention this to your insurance provider. The more secure your living situation, the more likely you are to reduce your auto insurance rates.

Buying a Car as a Retired Driver

  • Consider buying a vehicle that has up-to-date safety features. Cars that include full-front airbags and restraint devices can qualify you for safe driving discounts.
  • Along with shopping for a car with safety features, remember that reliable vehicles such as family sedans are usually cheaper to insure, especially if they’re used. Convertibles are cool, but higher premiums aren’t.

Retired Driver Car Insurance FAQs

Will my insurance rates go up when I retire?

Probably not. In fact, retirees often get better rates than full-time professionals and other employees, because they are considered a lower risk demographic by most insurance companies. Just make sure that you notify your insurance company that you’ve retired, and also ask if you are now eligible for new discounts.

What discounts can I get as a retiree?

Retirees often qualify for savings thanks to low-mileage discounts, having a good driving history, being a member of certain organizations such as AARP, and more. See above for our list of the best auto insurance discounts for retired drivers.

Should I change my car insurance company now that I’ve retired?

Different insurance providers have different attitudes about retirees. Some actively seek to ensure retired customers, while others don’t. If your current insurance company happens to belong to the former group, you can probably get a great deal from them—but you’ll definitely want to compare car insurance quotes on Insurify to see what you can get from the competition.

Conclusion: The best way to save on car insurance

Any time you have a major life change, you definitely need to review your insurance policies and decide which changes you need to make. Retirement qualifies as a major life change, so don’t skimp on your insurance review. At the very least, you’ll want to contact your insurance company and let them know you retired, as well as checking to see if you qualify for additional discounts based on your new status.

Retiring can get you a much better deal on auto insurance, but you’ll never know what deals are available unless you shop around and compare rates from different providers. Insurify makes it easy to review comparable policies from different insurance companies and see which one you can get at the lowest rates.

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Updated March 31, 2020

Wendy Connick is the founder and owner of Connick Financial Solutions, a provider of tax and bookkeeping services and a QuickBooks Online Certified ProAdvisor. A long-time freelance writer, she specializes in business and finance articles on subjects including taxes, investing, and retirement. Wendy is an Enrolled Agent (EA), the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. She is a member of the National Association of Enrolled Agents and a certified volunteer for VITA (Volunteer Income Tax Assistance), an IRS-sponsored program to provide free tax help for low-income individuals and families.