Many drivers reach their 60s and 70s with decades of experience and a clean record, and their insurance often reflects that. Life also changes around this time. Many people retire, drive less, move or downsize to one car, and each of those changes can affect what you pay and which coverage makes sense. This guide covers how age can affect rates, the discounts worth asking about and how to review your policy so it fits the way you drive now.
How age can affect your rates
Insurers set prices using many factors, including your driving record, claims history, the car, where it is kept and how much it is driven. In most states, age is one of those factors. Experienced drivers often pay less than new drivers, but some insurers begin to raise rates for drivers in their later years, based on their own claims experience for different age groups. When that happens, and by how much, varies widely by insurer, and a few states limit how insurers can use age at all.
Because insurers weigh age differently, a rate increase at renewal is a good reason to shop around. Two insurers can quote very different prices for the same driver and the same coverage. Our Compare Policies guide shows how to line up offers fairly.
Mature driver course discounts
A mature driver course, sometimes called a driver improvement or accident prevention course, refreshes driving skills and covers changes in traffic laws, vehicle technology and how aging can affect driving. Many states require insurers to offer a discount to older drivers who complete an approved course, often starting at age 55, and some insurers offer one where it is not required. In some states the course can be taken online.
- Ask your insurer which courses qualify before you enroll, and whether an online course counts.
- Keep your completion certificate and send a copy to your insurer.
- Ask how long the discount lasts. It often runs for a few years, and you may need to take the course again to keep it.
Driving less? Make sure your policy knows
Retirement often means no daily commute. How much you drive and what you use the car for are rating factors, so tell your insurer when they change. A car listed for commuting that is now driven only for errands and trips may be rated differently, and many insurers offer a low-mileage discount.
If you drive very little, two other options may be worth pricing. Usage-based programs track driving habits through an app or a device and may reward careful driving, though some can raise the price for risky habits where state rules allow. Pay-per-mile policies charge a base rate plus an amount for each mile you drive, which can suit drivers who rarely use the car. Neither option is available everywhere, so ask what your insurer offers in your state.
Review your coverage at retirement
Retirement is a natural time to look at the whole policy, not just the price. Go through these questions with your insurer or agent:
- Liability limits. Your savings, retirement accounts and home may be what a lawsuit could reach after a serious crash. This is usually not the time to lower liability limits, and some retirees raise them or add a personal umbrella policy. The Coverage Levels Guide explains how limits work.
- Medical coverage. Medicare does not always cover every cost after a crash, and how it works alongside medical payments coverage or personal injury protection depends on your state and your plans. Ask how your auto medical coverage would work with your health coverage before you change it.
- Older, paid-off cars. If your car has lost much of its value, collision and comprehensive may cost more than they are worth to you. How Car Depreciation Affects Your Coverage walks through that decision.
- Number of cars. If a second car now sits unused most of the time, ask about your options. Rules for insuring a registered car vary by state, so check them before you reduce or cancel coverage.
- Where the car is kept. If you move, or split the year between two homes, tell your insurer. Your policy generally needs to reflect where you live and keep the car for most of the year.
- Other drivers. If grandchildren, adult children or a caregiver drive your car regularly, ask whether they need to be listed on your policy.
Safety features worth considering
If you are shopping for a car, safety features can help you feel comfortable and confident behind the wheel. Features many drivers find helpful include automatic emergency braking, blind spot monitoring, rear cross-traffic warnings, backup cameras and lane-keeping assistance. Some insurers offer discounts for certain safety or anti-theft equipment, so ask which features they recognize. Keep in mind that sensors and cameras can make some repairs more expensive, so compare the full premium rather than assuming a newer car will cost less to insure.
Features help most when you know how to use them. Take time to learn how each one works, set the seat and mirrors carefully, and ask the dealer to walk you through any settings you are unsure about.
Keep your record clean
A clean record remains one of the best ways to keep a rate in check. Regular vision and hearing checks, asking your doctor or pharmacist how medications may affect driving, and choosing when you drive, such as avoiding night driving or heavy traffic, can all help you stay safe. Some states also have different license renewal rules for older drivers, such as more frequent renewals or vision tests, so check with your state's motor vehicle agency.
Discounts to ask about
Beyond a mature driver course and low mileage, ask about bundling your home or renters insurance with your auto policy, insuring more than one car with the same insurer, paying in full, automatic payments and paperless documents. Some insurers also offer discounts through membership organizations, alumni groups or a former employer's group program. Names and rules vary by insurer and state. Available Discounts has the full list and the questions to ask.
Your next step
At your next renewal, or when you retire, call your insurer or agent with the questions above and ask for quotes that reflect how you drive today. Gather your details first with the Rate Checklist, then compare offers side by side in Compare Quotes. If you would like help comparing offers, see the plans on Start Your Coverage.
This article is general information to help you understand auto insurance. It is not insurance, legal or financial advice, and AutoAssures.com is not an insurance company. Coverage, prices and rules vary by insurer and state; confirm details with a licensed agent or insurer.
