Tips for Getting Cheap Car Insurance in Retirement

Last Updated on February 5, 2026

Retirement changes almost everything about your budget—including your car insurance. As drivers age, insurers often see them as higher risk, especially after 70, and premiums can creep up even with a clean record.

The reality nowadays is different: many retirees are healthier, drive less, and maintain excellent driving histories well into their 70s and 80s. If that sounds like you, you shouldn’t be overpaying for coverage.

In this guide, we’ll show you how to get cheap car insurance in retirement, which discounts to ask for, and the smartest ways to adjust your policy so your rates go down—not up—as your lifestyle changes.

Auto insurance rates often rise with age, but retirees still have many ways to reduce premiums.
Low-mileage discounts, defensive driving courses, and dropping unnecessary coverage can significantly cut costs.
Switching insurers or updating your policy is one of the fastest ways to save money in retirement.
Regular comparison shopping ensures retirees never pay more than necessary for car insurance.

Table Of Contents

How Retirees Can Save on Auto Insurance
Switch to a New Car Insurance Policy in Retirement
FAQs on Finding Cheap Car Insurance in Retirement
Final Word

How Retirees Can Save on Auto Insurance

Not every insurance company offers a dedicated “senior discount,” but nearly all insurers offer savings opportunities that retirees can take advantage of. The key is knowing which levers to pull.

Ways Retirees Can Get the Cheapest Possible Rates

Take a defensive driving course. Many insurers offer savings to older drivers who complete an approved defensive driving course. These classes refresh your knowledge and prove to insurers that you’re committed to safe driving.
Update your annual mileage. Retirement usually means no more commuting. If you drive fewer miles each year, ask your insurer whether they offer a low-mileage discount. Many carriers lower premiums significantly for drivers who stay under certain yearly mileage thresholds.
Drive a vehicle that’s cheaper to insure. Your car’s make and model has a major impact on your premium. Retirees often prefer vehicles with strong safety ratings, which can reduce insurance costs. Check the IIHS yearly “Top Safety Picks” list before buying your next vehicle.
Raise your deductible. Since retirees usually drive fewer miles and may face fewer daily risks, increasing your deductible can lower your monthly premium. Just be sure you can comfortably afford the higher deductible if an accident does occur.
Remove coverage you no longer need. Retirees who own older cars may save a significant amount by choosing to drop collision or comprehensive coverage. If your car’s value is low, paying for full coverage might not be worth it.
Designate the primary driver accurately. If only one person in the household is doing most of the driving, make sure that person is listed as the primary driver. This can help ensure the policy is rated correctly—and more affordably.
Remove non-driving spouses from your policy. If your spouse no longer drives, you can remove them from your policy. This is especially helpful if they have a ticket history or accidents that are affecting the premium.
Reevaluate when it’s time to stop driving. Safety should always come first. If you or a loved one shows signs such as slower reaction times, trouble staying in lane, difficulty seeing road signs, or frequent close calls, it may be time to adjust driving habits—or stop driving altogether.

Switch to a New Car Insurance Policy in Retirement

Just because you’ve been with your insurer for decades doesn’t mean you’re getting the best deal. Auto insurance rates can increase over time because of inflation, changing risk models, and the way insurers adjust prices for long-term customers.

Your rate is affected by everything from age to credit score, your mileage, your driving record, and more. As these factors change, your policy should change with them.

You can update your existing policy with new limits, deductibles, or coverage types—or you can shop around and switch insurers entirely.

Insurance companies commonly raise premiums over time. One of the best ways retirees can save money is by comparing rates regularly. Many insurers offer new-customer discounts that long-time policyholders don’t receive.

To see which companies offer the best prices for retirees, check out our guide to the best insurance companies for seniors. And don’t worry—most insurers do not charge cancellation fees, so you can switch mid-policy without penalty.

FAQs on Finding Cheap Car Insurance in Retirement

Why does car insurance often go up when I retire or get older?

Insurers typically see older drivers—especially those over 70—as higher risk due to potential declines in vision, reflexes, and reaction time. As a result, rates may rise even if you’ve never had an accident. That said, today’s retirees often drive less and have strong driving records, which creates many opportunities to offset age-related increases with discounts and smarter coverage choices.

What are the easiest ways for retirees to lower their car insurance premiums?

Some of the fastest ways to save include: taking an approved defensive driving course, updating your annual mileage (no more daily commute), raising your deductibles if you can afford it, dropping collision/comprehensive on older cars, and making sure only active drivers are listed on the policy. These steps can easily cut costs by 10–30% or more, depending on your situation.

Do insurance companies offer special discounts just for seniors or retirees?

Not every insurer offers a labeled “senior discount,” but many provide savings that retirees are well-positioned to use: low-mileage discounts, defensive driving course discounts, safe-driver and telematics discounts, multi-policy bundles, and savings for cars with strong safety ratings. The key is to ask your insurer which discounts you qualify for now that your lifestyle has changed.

Should I drop full coverage on my older car once I retire?

Maybe. If your car’s value has dropped enough, paying for collision and comprehensive coverage may no longer be cost-effective. A common rule of thumb: if your annual full-coverage premium is more than about 10% of your car’s value, it may be time to consider liability-only coverage—provided you can afford to repair or replace the vehicle yourself after an at-fault accident.

Is it worth switching insurance companies after I retire?

Yes, it often is. Being with the same insurer for decades doesn’t guarantee the best price. Rates change over time as insurers update their risk models and pricing. Retirees can usually save by comparing quotes every year or two, especially after major life changes like retiring, downsizing vehicles, or driving fewer miles. Many companies offer attractive new-customer discounts that long-time policyholders don’t get automatically.

How do I know when it’s time to stop driving altogether?

Insurance savings are important, but safety comes first. Warning signs include slower reaction times, difficulty seeing road signs or lane markings, frequent close calls, getting lost on familiar routes, or feedback from family and friends about your driving. If these issues appear, talk to your doctor, consider limiting driving to daylight and familiar routes, or explore alternatives like rideshares and community transit. Protecting yourself and others on the road is always the top priority.

Final Word

Retirement doesn’t have to mean paying higher car insurance bills. By updating your mileage, taking defensive driving courses, choosing the right coverages, and comparing rates regularly, retirees can save a substantial amount on auto insurance.

The best strategy is simple: shop around. Rates vary widely between insurers, and retirees often qualify for discounts they didn’t have access to earlier in life. Use the Insurance Panda quote comparison tool at the top of this page to compare rates and find the most affordable coverage for your needs.

Stop Overpaying for Car Insurance