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Updated June 15, 2022
Living comfortably on a fixed income means keeping your budget in tight order. Ensuring you’re getting the best deal on your car insurance premiums can relieve that financial pressure and make your retired years all the more enjoyable.
Plus, we will show you how to get the lowest rate by comparing your options with Insurify. Our free and confidential tool allows you to view six or more quotes from top companies in your area, adjust coverage options, and explore discounts. Comparing car insurance quotes has never been simpler. Let’s get started.
The average monthly car insurance premium for retired drivers is $141.
The cheapest insurer we found for retired drivers is Amigo USA, with average premiums of $93 per month.
Usage-based discounts can help retired drivers save on car insurance if they drive fewer miles because they’re not commuting to work.
Cheapest Car Insurance Companies for Retired Drivers
We reviewed more than millions of car insurance quotes given to retired Insurify users. Below are our findings for which companies consistently offered the lowest rates overall.
|Insurance Company||Cheapest Monthly Quote|
Smaller companies tend to offer better rates than the nation's largest companies. However, many larger companies, like Progressive, Travelers, and State Farm, offer great rates, even if they’re not the absolute cheapest.
Remember that the cheapest company on average doesn’t mean it’ll be the most affordable company for you. Insurers base their rates on many factors, including where you live, the type of car you drive, your driving record, credit score, and even marital status.
So always be sure to compare your car insurance rates before you buy. And don’t forget to compare at least every six months afterward—things can change, and chances are the cheapest company for you today won’t be the cheapest company in the future.
See More: Best Car Insurance Companies
How much does car insurance cost for retired drivers?
How much is car insurance for required drivers?
Although retirement does not directly affect car insurance rates, drivers in their 50s and 60s pay the least for car insurance premiums on average. Retiring may indirectly affect your car insurance rates if the primary use of your car changes from “commute” to “pleasure”, or if you drive fewer miles annually and qualify for low-mileage discounts.
Among the thousands of car insurance quotes generated for retired drivers on our site, we found that the average monthly premium is $141. But your rate will depend on several factors that insurance companies use to assess your risk. The lower the risk you pose, the lower the premium.
Older drivers are more likely to practice safe driving habits and have more driving experience. Therefore, older drivers tend to get lower rates for insurance coverage. Having a clean driving history and modest car will lower rates even further.
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Best Car Insurance Discounts for Retired Drivers
Many companies offer a special discount to drivers older than a certain age, often called a mature driver discount or senior discount. This discount typically gets you 10 percent off your car insurance premiums.
In our analysis of the best car insurance discounts, we found that maintaining good credit is one of the best ways to get discounted insurance—saving you as much as 80 percent compared to drivers with poor credit!
The good driver discount can also save you up to 40 percent. Eligibility depends on you staying accident-free and maintaining a clean driving record. Some companies also participate in accident forgiveness, which can reduce rate hikes in the event of an at-fault accident.
You save significantly by having car safety features like airbags and antilock brakes. Homeowners can get a discount simply for being a homeowner or for bundling auto with home insurance. You can find additional discounts if you’re a military member, a federal employee, or belong to a professional organization, such as AARP.
There’s no reason not to stack as many discounts together as you can. Though a single deal may not make a huge difference, stacking three or more discounts can save you hundreds in annual premiums. If you’re unsure you’ve received all the discounts you’re entitled to, speak to your insurance agent to learn about anything you’re missing.
See More: Cheap Car Insurance
Tips for Cheaper Car Insurance for Retired Drivers
Saving on car insurance is about more than everyday discounts. Using the following tips helps you get the most significant savings now while setting you up for even more savings in the future.
Maintain a Good Driving Record
Nothing will raise your rates more than multiple marks on your driving record. According to our research, speeding tickets, accidents, and DUIs inflict the most significant rate increases for auto insurance premiums. On the other hand, policyholders with clean records get low rates and additional perks, like a safe driver discount.
Take a Driving Course
Defensive driving courses are the best way to remain a good driver. They help you reduce the risk of accidents, and they also save you money. The typical course costs between $20 and $50, but it can save you up to 20 percent off your insurance premiums for three or more years. Just be sure that your insurance provider approves the course you take.
Try Usage-Based Insurance
If you’re a low-mileage driver, you should look for pay-per-mile insurance. With this type of car insurance policy, you pay based on the number of miles you drive. The less you drive, the less you pay—a great motivation to use alternative transportation like bicycling.
Enroll in a Telematics Program
If you’re driving better and putting fewer miles on your car, a telematics program is an excellent way to lower your auto insurance rate. Telematics programs track your driving patterns and give you discounts for good driving habits. All you need to do is download an app or install a device in your car (it's easier than it sounds!). Your insurance company does the rest.
Adjust Your Policy
If you drive a vehicle that costs less than $5,000, you probably don’t need a full-coverage car insurance policy. By forgoing collision or comprehensive coverage, you can save hundreds every year. You can also lower your rate by raising your deductible(s).
A word of caution: before dropping full coverage, you should be sure to have enough in your savings to be able to replace your car when the time comes. That means keeping at least enough for a down payment. Before raising your deductible, you should also have enough money saved to pay it in the event of a claim.
Shop Around for Car Insurance
Comparing car insurance quotes is the only way to be sure you’re getting the best deal on your car insurance. You can do this much faster by using Insurify. Fill out one confidential form to receive quotes from six or more insurers in your area. And, when you sign up for notifications, you can receive an email every time we find a lower rate, so you’ll never miss a chance to save.
Cheapest States for Car Insurance for Retired Drivers
Where you live has a significant effect on your car insurance. The local traffic patterns, claim rates, crime rates, and weather patterns all influence your risk. The less risky your location is (according to insurance companies), the lower your insurance cost.
Below are the five cheapest states for car insurance for retired drivers.
|State||Cheapest Monthly Quote for Retired Drivers|
The Best Way to Compare Cheap Car Insurance Quotes
Conducting comparison shopping is a must when it comes to car insurance. There is no other way to be sure you’re getting the best deal. In the past, that meant calling or going online with each company to get a quote. But you can do this in just a few minutes with Insurify. Compare car insurance rates in minutes!
Fill out one form to start comparing prices in your area. We use proprietary data and AI technology to get you accurate quotes from top insurers without sharing your information with any of them unless you want to. If you find a price that beats your current insurer, you can purchase your policy by following a link to their website or speaking with one of our insurance agents. It’s easy and free!
Frequently Asked Questions
The average cost of car insurance for a retired driver is $141 a month. But how much you pay will depend on many factors, including where you live, the car you drive, and your driving record. You may pay as little as $68 a month or as much as $315.
You can get the cheapest insurance in a few ways. First, adjust your insurance policy so that you are covered only for what you need. Next, shop for car insurance with Insurify so you can see which company offers you the lowest rate. Finally, take advantage of all the discounts you’re entitled to by your company.
The cheapest way to get car insurance is by comparing your rate before you buy. While many companies offer low-cost insurance, you won’t know which one offers you the best rate unless you compare. You can do this in less than five minutes by using the Insurify rate-comparison tool—without sharing any of your information unless you’re ready to buy.
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Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.