Get the Best Senior Discounts for Auto Insurance
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When it comes to car insurance for seniors, many drivers may feel there aren’t enough discounts available. As older adults age and face rising auto insurance costs, they may wonder if there are ways to decrease how much they pay out of pocket.
After years of affordable rates, no one wants to overpay for auto insurance. To help you find the cheapest car insurance rates, we’ve put together the best senior discounts for auto insurance. Take a look at these discounts and reach out to your insurer to see which ones you might qualify for.
- Senior drivers can secure competitive car insurance if they know where to look and what to ask for.
- Consider shopping around for new car insurance if you’ve recently retired. You may be eligible for a discount because you’ll use your car less without a daily commute.
- Seniors pay higher rates than drivers 30-55 years old because their reaction time may be slower increasing the risk of being in an accident. Taking a defensive driver course specifically for seniors can help offset those higher rates.
How Much Does Senior Car Insurance Cost?
The cost of senior car insurance varies between drivers. Your state regulates insurance, so your premiums may be higher or lower than the national average.
There are many factors that insurance companies take into account when determining car insurance rates. They will look at factors such as:
- Your driving record
- Credit score
- Location/zip code
- Car make and model
Senior Auto Insurance Discounts
There are many ways to save on car insurance as a senior. Here are a few of the most common discounts available:
Many insurers look to give back to those who served their country. You may qualify for special military discounts on auto insurance if you’re a veteran who retired from the government or armed forces. Veterans often qualify for discounts through insurance companies like USAA, which offer impressive discounts for military members and their families.
Bundling policies together is one of the most common discounts for drivers, regardless of age. As drivers age, they will likely start thinking more seriously about life insurance. Or they may have other assets they wish to insure, such as a rental property or their own home. Combining multiple policies under the same company can save you up to 25% on car insurance.
Vanishing Deductible Discount
While this isn’t an exact discount on your policy premium, it’s still a way for older drivers with good driving records to save. With a vanishing deductible, seniors will receive a discount on their deductible for each policy period they go without an accident on their record.
Good Driving Discount
Drivers in their golden years with good driving records can enjoy a good driving discount from insurers. If you’re someone who hasn’t had any accident or ticket for at least three years, you qualify for the discount. The savings can range anywhere from 10 – 40%.
Another way to qualify for a good driver discount is to have your insurance company track your driving habits. You’ll install a tracking device in your car or phone that monitors your driving and reports it back to your insurer. With this method, you can save up to 30% on your premium. Avoid braking suddenly, fast accelerations, or speeding to increase your savings.
That’s right. You can get a discount on car insurance when you hang up your work hat for the last time. Not only will you enjoy more time with your family and friends, but you’ll also enjoy savings on car insurance. Many popular car insurance companies offer a retirement discount, also known as a mature or senior discount.
Do you have a membership to specific organizations, or are you an alum of a university? If so, you could use these positions to get some extra savings. Check your insurance company’s website or call and ask which university or organization they recognize to enjoy your discount.
Paid-in Full Discount
Instead of paying for your insurance policy monthly, why not pay it in full if you can? You avoid the pesky monthly payments, and you can get a discount along the way. Several insurers offer drivers a discount for paying upfront. They may waive your monthly payment fee, which is small, but savings are savings.
If you can’t afford to pay for your policy in full, some companies offer a discount for signing up for automatic payments. Check with your insurance agent to see what options they have available.
Vehicle Safety Discount
If your car has safety features installed, you can earn a discount on your auto insurance. Each insurance company determines the features they’ll accept, but general ones include anti-lock brakes, daytime running lights, airbags, and electronic stability control.
Another way to ensure you get the lowest rates on auto insurance is to join a group like AAA or AARP. These groups give you access to affinity group discounts that can knock anywhere from 5-10% off your auto insurance rates, depending on your state and insurance company.
Other Ways Seniors Can Save on Car Insurance
Although plenty of discounts are available to older adults, not all of them are in every state. In addition, you may only enjoy some discounts on parts of your coverage, leaving you to pay the full amount on the rest.
Besides the major discounts from car insurers, there are other ways seniors can secure lower rates. We’ve put a few together to help you save a few extra dollars a month. Here are seven ways seniors can further reduce their cost of car insurance.
Choose an Insurance Company Only for Seniors
While you may be familiar with larger auto insurance companies like GEICO, State Farm, or Progressive, many people are unaware of smaller companies specializing in insurance for seniors and retirees.
These smaller companies may be local or insure older drivers nationally. Start your search by looking for insurers offering competitive rates to drivers 55 and older. You can also hone in on companies targeting retirees or other “high-risk” drivers.
Take a Defensive Driving Course
The leading reason car insurance companies tend to charge older drivers more for insurance is senior drivers often have failing vision, slower reflexes, and other health issues. These factors make them more prone to accidents than younger, healthy drivers.
One way to avoid increases in car insurance is to take a defensive driving course. This helps you prove to your insurance company that you’re still a driver with sharp driving reflexes. These courses teach defensive driving tips and techniques such as:
- How to prevent road rage
- Avoiding aggressive driving patterns
- Predicting potential driving hazards
- How to scan the road and be aware of your surroundings
While these techniques may seem simple, they can go a long way toward preventing accidents and keeping your auto insurance costs low. To qualify, you must take a state-approved defensive driving course.
To find these courses near you, check out the National Safety Council to find approved courses you can take online. Be sure to ask your insurance company which defensive driving courses they accept before you purchase one.
Switch to Pay-Per-Mile Insurance
Even if you already enjoy a low mileage discount from your insurer, you might want to consider switching to pay-per-mile insurance to enjoy further savings. With this policy, you only pay for the miles you drive every month.
Your insurer will use two factors to calculate your monthly insurance premium: your base rate and pay-per-mile rate.
Your base rate is calculated similarly to a standard insurance rate, and insurers look at factors like age, driving history, gender, and credit score to determine how much you pay each month. Your pay-per-mile rate is typically only a few cents, but it can quickly add up if you spend a lot of time on the road.
Work to Improve Your Credit Score
Your credit score can directly impact your car insurance quotes in many states. Insurance companies feel that your credit score reflects your financial stability, which correlates with your chances of filing a claim. Drivers with lower credit scores will find it harder to secure affordable auto insurance.
To combat this, work to improve your credit score. Start by paying off any existing debt, avoid opening multiple credit cards, and continue paying your bills on time. As your credit score improves, you’ll see that it’s easier to find cheap car insurance. If you don’t currently have a credit card, getting a secured one that lets you build credit safely might be worth it.
Shop Around for Auto Insurance Often
Ever heard the saying, “If it’s not broken, don’t fix it?” Many seniors have been with the same car insurance company for years and have likely qualified for a loyalty discount at this point. However, sticking with the same auto insurance company for too long could have you overpaying for coverage.
Compare different companies to see pricing and coverage options. Try to shop around for the best car insurance companies every six months. You might realize that you can get a cheaper deal from another company. Look at each company’s reputation and check customer reviews and their J.D. Power ranking.
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Increase Your Deductible
If you’re retired and can afford to increase your deductible, this is a great way to enjoy more savings on car insurance. While raising your deductible decreases the amount you’ll pay each month, you’ll need to pay more out of pocket if you file a claim. If paying $500-$1,000 upfront will put you in financial turmoil, it’s best to keep your deductible low and look for other ways to save.
Insure a Cheaper Car
Seniors can save on car insurance by choosing to insure a cheaper car. Remember that auto insurance companies keep data about different vehicle makes and models, and they use this information to determine how much you’ll pay for coverage. For example, cars more prone to theft will be more expensive than car models that don’t tend to get stolen.
Also, more affordable vehicles often come with more affordable insurance.
Before shopping for a new car, run the numbers to see how much you can expect to pay by the make and model. If your new vehicle is safer and costs less to repair than your old one, it might be worth it to make the switch to enjoy savings.
Change Your Coverage Limits
If you’re retired, you’re likely spending less time on the road. If so, you might find that your policy includes some coverage that isn’t necessary anymore. For example, you might own several vehicles or live in a house with spare cars. Although you previously needed rental car coverage, it’s not necessary now. Dropping this can help you save money.
However, before you run to drop your collision or comprehensive coverage, think again. We typically recommend that you maintain higher levels of coverage unless your vehicle has diminished in value to a point where it’s no longer worth it.
FAQs About Discounts on Car Insurance for Seniors
Why do seniors pay more for car insurance?
The cost of auto insurance for older drivers starts to rise once they reach the age of 65. Senior drivers typically get into more accidents than drivers in their 40s or 50s. As drivers age, their slower reflexes and failing vision or hearing make them more accident-prone.
Which auto insurance is best for senior citizens?
The best auto insurance company for senior citizens depends on their needs and locations. What works for one older driver may not work for another. To find the best car insurance company for you, take the time to shop around, compare policies and review customer satisfaction ratings.
Do you pay more for car insurance if you are retired?
Not necessarily. Retirees often qualify for special discounts simply for being retired. Ask your insurance company if they offer a retirement discount to enjoy extra savings on your car insurance premiums. In addition, the lack of a work commute will make you spend less time on the road, which can lower your car insurance costs.
Does car insurance go up after age 80?
Car insurance rates start to increase at the age of 65 and only get higher from there. Since your insurance premiums will become more expensive, you want to shop for the best deals.
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