- Retirement is a good time to review your car insurance and see if driving less could lower your costs.
- You may also save through discounts for safety features, loyalty, defensive driving and paperless billing.
- If you have more than one car, it may be worth comparing the cost of keeping both versus downsizing.
- As you look for savings, make sure your coverage still fits your needs, especially your liability limits.
Tips for Saving on Car Insurance When You’re Retired
Car insurance does not automatically go down when you retire, but depending on how much you drive, the car you insure, and the coverages you carry, there may be ways you can save.
Key Takeaways
Quick takeaway: If you're retired, reviewing your annual mileage, the vehicles you insure, available discounts and your coverage limits may help you identify opportunities to save without sacrificing important protection.
Are you driving less?
Now that you’re retired and don’t have a commute, you may be driving less. That change can affect what you pay for coverage, especially if your insurer considers annual mileage when calculating your premium. It can be a good time to ask your insurer whether updating your annual mileage could affect your premium.
Review the vehicles you insure
Retirement is also a good time to evaluate whether the vehicles you own still fit your needs.
Older vehicles
The vehicle you keep in retirement can influence what you pay. For example, in some cases an older vehicle may cost less to replace than a newer one. If you’ve recently paid off your car, it may also be worth reviewing whether all optional coverages still make sense for the vehicle’s current value.
Should you keep multiple vehicles?
If your household owns two vehicles, retirement may be a good time to evaluate whether you still need both. Downsizing could reduce insurance, fuel and maintenance costs, but remember to compare those savings with any multicar discount you currently receive.
Things to consider
| Retirement-related savings check | Why it may matter |
|---|---|
| Driving fewer miles | Lower annual mileage may affect your premium, depending on your insurer and policy details. |
| Age of the vehicle | An older car may cost less to insure, so it’s worth reviewing your coverage based on its current value. |
| Keeping one car instead of two | You may reduce insurance, gas and maintenance costs, though you should compare that with any multicar discount. |
Quick tip: If you’re looking for the best car insurance for retirees, start by reviewing how much you drive, what discounts you qualify for and whether your current coverage still matches your needs.
Check for available discounts
Retirement may also be a good opportunity to review the discounts available through your insurer. Depending on your eligibility, you may qualify for savings such as:
Safety feature discounts
Are you keeping up with the latest safety features? Insurers sometimes offer discounts if your car has features like a car alarm or vehicle recovery system, adaptive headlights, electronic stability control, forward collision warning and passive restraints such as airbags. Stay on top of which features qualify for discounts to ensure you’re receiving them. (Terms and conditions apply, must qualify for each discount. Not all discounts are available in all states.)
Need more info? Find out if safety features can lower your car insurance.
Defensive driving discounts
If you’re a qualified adult driver who has completed an approved driving course, you could see significant savings on your auto insurance. (Ages and discount can vary by state.)
Loyalty discounts
If you’ve been with one company for your car insurance for a long time, many carriers offer a loyalty discount. (Discount depends on length of time with the company.)
Paperless billing
Some insurers will offer you a discount if you sign up to receive policy information and bills electronically.
Review your coverage
While saving money is important, retirement is also a good time to make sure you continue carrying liability limits that provide appropriate financial protection. It’s generally recommended that your liability insurance should be well above your state’s minimum requirement. Opting for bodily injury and property damage limits of 100/300/100 is a good starting point, but 250/500/100 may be even better, depending on your situation. While it may cost a little more, you’ll save in the end if you’re ever involved in an accident that causes injuries to other drivers or damage to property.
As you enter retirement, don’t forget to talk to your insurer about these potential discounts and other ways to save on your car insurance. It may also help to review how much car insurance you need and when to review auto insurance so your coverage stays aligned with your needs.
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FAQs about saving on car insurance after retirement
It can, but not always. If retirement means you drive less, qualify for new discounts or insure fewer vehicles, your premium may change. Your rate can also depend on your location, driving history, vehicle and coverage choices.
It may be in some situations, especially if the car is worth less than a newer model. But the premium can still vary based on the type of vehicle, repair costs, where you live and whether you carry optional coverages.
If you’re comparing the best car insurance for retirees, look beyond price alone. Review available discounts, liability limits, customer service, and whether the policy still fits how often and how far you drive.
Common strategies include asking about low-mileage options, reviewing multicar discounts, checking for safety-feature discounts, taking an approved defensive driving course and choosing paperless billing when available.
Insurance Institute for Highway Safety
MoneyGeek
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