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9 smart ways for seniors and mature drivers to save on car insurance

Kat Aoki
Ways to save on car insurance for mature drivers (monkeybusinessimages via Getty Images)

If you're retired or nearing retirement, you know that every dollar counts — especially when it comes to fixed expenses like car insurance. The good news? Your years of experience behind the wheel might actually pay off.

Mature drivers can often snag lower car insurance premiums and access special discounts that can put hundreds back in your wallet each year. Without further ado, here are nine proven ways to maximize your car insurance savings into 2025 and beyond.

You might think most auto insurance companies charge about the same rates. Not so — simply comparing quotes from different insurers could save you anywhere from $350 to a whopping $3,000 a year or more, based on my own personal experience.

That’s because each company uses its own formula to set rates, and there’s no way to find the best deal unless you shop around.

Key times to compare new policies include:

  • Six months after renewing your current policy

  • When buying a new vehicle or changing vehicles

  • After moving to a new city or state

  • Removing an adult child from your policy

  • After major life changes, like retirement or divorce

  • After an accident or moving violation

💡 Expert tip: While insurance agents can be helpful, they often work with a limited number of companies — which means you may not get the best rate quotes from one source. Taking 30 minutes to get your own car insurance quotes could save you hundreds and give you leverage when negotiating rates.

Defensive driving and safe driving courses offer safety refreshers and financial benefits, especially for older drivers. Insurers like GEICO, Nationwide and American Family Insurance offer discounts of 5% to 15% off your insurance policy, depending on the state.

To secure this discount, you’ll need to verify the age and state-specific requirements and contact your insurer for a list of approved course providers. Then, complete the course and submit your certificate of completion to the insurer. You should see your hard-earned discount by your next statement.

Your retirement lifestyle might mean less time on the road, and that could translate into significant savings on your car insurance. “If you're driving relatively infrequently — less than 8,000 to 10,000 miles annually — it may be worth exploring a pay-per-mile program,” explains Maya Afilalo, a car insurance expert and industry analyst.

Afilalo points out that pay-per-mile programs are different from a low-mileage discount, which is a rate reduction for driving under a certain mileage annually — usually 7,500 miles a year. So, if you’re a low-mileage driver, it’s worth investigating both options to see the types of savings available for each category.

Usage-based insurance (UBI) programs have gained popularity, especially among retirees who no longer commute to work. These insurance programs work by relying on monitoring devices or smartphone apps to track your driving behaviors — including rapid acceleration, hard braking and phone use — offering potential savings of 10% to 40% off your policy.

However, these programs may not be right for everyone. Tracking devices are known to misinterpret defensive driving techniques as risky behavior. And you’ll want to consider privacy, as these programs are designed to collect data about your driving habits and movements.

To save money with one simple move, consider bundling your auto insurance with other insurance policies offered by the same company. Most insurers are willing to knock 5% to 25% off your premiums when you combine auto and homeowners or property coverage.

And while that's the most popular combo, you can also get multipolicy discounts by bundling with:

This is a big one, because nothing will jack up your premium faster than filing a damage claim.

Of course, it's sometimes necessary to file a claim — after all, that's why you have insurance. But if you can pay for minor repairs yourself, it might be cheaper (and less aggravating) in the long run.

Experts say it best to avoid filing claims that are under $1,000 to $2,000, because you'll likely end up paying more in increased premiums over time than you'd receive from the claim payout. "Minor at-fault accidents can raise premiums by 20% to 40%," says Afilalo. "For major at-fault accidents, increases of 50% aren't uncommon." (I learned this the hard way when I filed a claim with my insurer for a $2,000 repair job resulting from a minor fender bender. Little did I know that my insurer would cancel me for it. Even worse, when I went shopping to find a new insurer, my premium jumped from $883 to $1,558 a year!)

Additionally, insurance claims stay on your record for three to five years, and having a recent claim could temporarily disqualify you from defensive or safe driver course discounts — a costly double hit to your insurance costs.

Beyond age-specific driver discounts, you may be eligible for general savings opportunities available for all drivers.

Allstate, Geico, Farmers, Liberty Mutual, Progressive, State Farm and Travelers are among the auto insurers willing to knock money off your policy for common and hidden policy discounts that include:

  • Pay-in-full discounts. Your insurer may be willing to knock 5% or more off your policy if you pay at least six months of coverage up front.

  • Low-mileage discounts. If you drive less than 7,500 miles a year, it could save you money off your quote.

  • Paperless billing and autopay discounts. Many insurers offer savings for policyholders who opt for electronic billing or are willing to put payments on autopilot.

  • Good student discounts. If you or a household driver attend college with a GPA of B or better, you might get a moderate discount.

  • Military or occupational discounts. It’s not only members of the military who can enjoy policy discounts — first responders, healthcare workers and even teachers might see reduced rates.

  • Discounts for anti-theft and vehicle safety features. If your car comes with anti-lock breaks, collision or lane-departure warnings, blindspot detection technology, airbags — or you’ve installed anti-theft devices — you might be eligible for a discount.

  • Professional membership discounts. Belonging to a specific nonprofit, credit union, college or alumni association, social club or even wholesale shopping club might net you exclusive discounts, depending on your insurer.

Don’t be afraid to call your car insurance agent or auto insurer to ask about discounts you might be eligible for but don’t yet know about.

Dig deeper: Clever ways to save money — and outwit rising costs

Having good to excellent credit can unlock more than lower rates on personal loans and premium credit card rewards. Drivers with poor credit can expect to pay from $230 to nearly $550 more per year for car insurance when compared to those with fair or poor credit, according to a recent report, with even higher rates that depend on where you live. Put another way, having a poor credit score can lead to paying double or more for your car insurance — highlighting the need to maintain a healthy credit score, even in retirement.

Whether fair or not, many auto insurers use credit-based insurance scores as a way to predict whether you’re more or less likely to submit a claim against your policy. And the rise in artificial intelligence models could mean we’ll see real-time premium adjustments linked to your credit score.

Dig deeper: Why your credit scores matter after you retire

A driving record free of violations, citations and accidents is ultimately the best way to keep your premiums low. Your motor vehicle record is one of the most important factors that auto insurers use to determine the rates you’ll pay for car insurance coverage. And while a speeding ticket can stick around on your motor vehicle record for up to three years, a DUI or DWI can linger for five years or longer, limiting your coverage options and driving up what you’ll pay — from $10 a month for minor infractions to more than $800 a month for more severe violations, according to AAA.

Interested in seeing what insurers are reviewing? Contact your local DMV to request a copy of your driving record. You might be surprised what’s in it.

Senior drivers often enjoy lower insurance rates than younger drivers until around age 70. After that, Afilalo says, “rates can tick up for drivers in their 70s and 80s due to a slight increase in the likelihood of accidents.”

Here are average annual policy costs by age for liability-only and full-coverage auto insurance, according to carinsurance.com.

Age

50/100/50 liability only

100/300/100 full coverage

Age 70

$676

$1,841

Age 60

$611

$1,717

Age 50

$625

$1,790

Age 40

$649

$1,897

Age 30

$669

$2,012

Age 20

$1,233

$3,739

No. The Age Discrimination Act provides important protections for seniors, which means, by extension, that insurance companies can’t refuse coverage based solely on age. However, they can consider factors that often correlate with age, such as medical conditions and driving history.

"For example, if your doctor notifies the DMV that you're unfit to drive, your license could be suspended, and your carrier could drop you, leading to higher premiums down the line," says Afilalo. “However, minor health issues — like needing to wear glasses or contact lenses while driving — won't affect your insurance rates.”

Some state DMVs can require additional testing for specific age groups, such as California's in-person renewal tests for drivers older than 70. Contact your state's motor vehicle services for details on these programs and general DMV services.

Other stories in our budgeting and saving series

Learn more about how auto insurance quotes, policies and rates work with these common questions.

When you move to a new state, you can’t always transfer your existing auto insurance policy. Each state requires different insurance regulations and minimum coverage levels. You'll likely need to get a new policy or update your current policy so that complies with your new state's laws. Get in touch with your local DMV for guidance.

Yes. Your car insurance typically covers most loved ones who borrow your car occasionally during holiday visits, thanks to what insurance companies call "permissive use." This means if you give someone permission to drive your car, your policy usually extends coverage to them. However, important limitations and considerations exist, especially for longer stays or frequent borrowing. Learn more in our guide to auto insurance coverage when lending your car.

No, a rate increase in auto insurance isn't necessarily age discrimination. That said, insurance companies can legally use age as one of many factors in setting rates, as long as they base it on statistical data about accident risks for different age groups — and not your specific age only.

Not necessarily. While AARP partners with The Hartford to offer auto insurance to its members, you'll still want to compare rates with other insurers — you might find a better deal by shopping around.

If your car is more than 10 years old and worth less than $3,000, you might consider dropping comprehensive and collision coverage while maintaining the required liability insurance. However, your decision should be based on your state’s requirements for minimum coverage and your personal situation.

Kat Aoki is a seasoned finance writer who's written thousands of articles to empower people to better understand technology, fintech, banking, lending and investments. Her expertise has been featured on sites like Forbes Advisor, Lifewire and Finder, with bylines at top technology brands in the U.S. and Australia. Kat strives to help consumers and business owners make informed decisions and choose the right financial products for their needs.

Article edited by Kelly Suzan Waggoner

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