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Here are a few ways seniors can lower their car insurance premiums

Car insurance is one of the biggest burdens in retirement because premiums keep rising

Updated:

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Key Insights

  • Car insurance costs have surged, rising three times faster than overall inflation, posing a significant financial strain on retirees with fixed incomes.
  • Seniors can reduce premiums by taking defensive driving courses, comparison shopping annually, reevaluating coverage types, and using discounts like low-mileage or policy bundling.
  • Regularly reviewing and adjusting insurance policies ensures alignment with current needs, helps prevent unnecessary costs, and can significantly reduce overall vehicle-related expenses, which average over $4,200 annually for seniors.

The cost of car insurance has been one of the major inflation drivers over the last two years, rising three times faster than the overall inflation rate. While that’s a hardship for all consumers, it may be particularly burdensome for people living on a fixed income.

However, there are some things retired consumers can do to reduce their premiums or keep them from going up.

“One of the best things you can do as a senior to help keep your automobile insurance expense low is to take an automobile defensive driving course,” Alex Black, chief marketing officer at EpicVIN, told Retirement Living. “Some insurers offer a good discount for that. Also, don’t be shy to comparison shop each year. Rates can be raised for no reason, and loyalty does not necessarily reward.”

Melanie Musson, a car insurance expert with CarInsurance.org, agrees. She told us seniors should regularly check other companies for lower rates and discounts. Just because you’ve been with a company for a long time, she says, it doesn’t mean it’s not worth seeing what other options might be better.

“It may be time to reevaluate coverage types,” Musson said. “Liability coverage is the foundation and non-negotiable, but other types of coverage may no longer be appropriate. For example, if a senior is driving around a car that’s 15 years old, they may no longer need to be paying for full coverage.”

Zach Patten, principal agent at Oak Grove Insurance, explained that most insurance companies offer ways to lower premiums. Some are available to everyone, but a few are reserved for seniors.

“Seniors can lower their car insurance costs by taking advantage of low-mileage programs, bundling their home and auto policies, and by asking about mature driving programs,” Patten said. 

Patten said other factors can impact the cost of the policy, such as listed drivers and coverage selections. 

“The key is to proactively review coverages and discounts, ensuring your policy is aligned with your current needs and preventing unnecessary rate increases.”

For a retired couple, a question to consider is “Do you still need two vehicles?” In 2024, AAA released a study estimating that the average annual cost of car insurance for seniors is approximately $1,715. When combined with fuel and maintenance, the total annual vehicle-related expenses can reach around $4,218 for those driving 10,000 miles per year.

Overall, vehicle insurance premiums aren’t likely to go down much more because of the cost of new vehicles, vehicle parts, and skilled labor, so any action to get any kind of discount will probably pay off.

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