Auto Insurance for Retirees

As you close in on retirement, it's crucial that you start to look for ways to reduce all of your regular living expenses. Updating your work status with your insurance company is one way to save on auto insurance for retirees. Removing some first-party coverage that you carry or searching for insurance companies that offer auto insurance discounts to retirees are other ways you can lower your rates.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: May 26, 2022

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

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Things to remember...

  • When you retire, your insurance needs will change and it’s important to review your insurance portfolio closely
  • Retirees are still obligated under state law to carry auto insurance as long as they own a vehicle with active tags
  • As a senior, you are considered a different driver type than an average adult
  • One of the first changes you should make is to update your vehicle usage to classify it as a pleasure auto
  • When your mileage goes down, you can lower your rate by asking your agent to apply a low-mileage discount
  • If you retire in a different state, you need to transfer your insurance to the state where the car is registered

You’ve waited your entire adult life to retire. As you’ve climbed up the ladder in your profession, you’ve put thought to how much you’ll have to save to live comfortably in your golden years.

After all, retiring isn’t much to look forward to if you can’t afford to enjoy your new-found freedom and have fun.

As you close in on retirement, it’s crucial that you start to look for ways to reduce all of your regular living expenses. You’ll obviously save money on gas, tolls, uniforms, and all of the expenses that you can’t avoid when you’re on the daily grind.

You could also save money on your auto insurance premiums just for going from an employed driver to a retired one. Compare quotes today to see how much you could save! Here’s what you should know:

Updating Your Employment Status Could Save You Money


Insurance agents have to take the time to get to know you when they are handing out quotes. There’s so many different boxes to check and coverage limits to choose.

One of these boxes is related to your current employment status. You could be classified as one of the following:

  • a full-time professional
  • a part-time professional
  • a student
  • a retiree

You probably won’t pick up the phone and call your current provider the moment that you retire. Most people are too excited to go on their first trip to worry about seemingly trivial things like their listed employment status.

You might think it’s a waste of time, but simply updating your employment status could save you depending on where you’re insured.

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Why does updating your status to retired save you?

While most people have to wait until their 60s to officially retire because of the rules set by the Social Security Administration, some professionals are so successful at their retirement planning that they can stop working in their 50s or sooner.

When you change your employment status from employed or business owner to retired, your rate could decline for that simple update. This isn’t just a goodwill gesture; it’s because of risk changes.

Studies show that retirees tend to be better drivers because they are happier and less stressed. They also have the choice not to drive in stressful conditions if they don’t want to.

Lifestyle Changes at Retirement Can Reduce Your Rate


Retiring from your job is definitely going to change the way that you live. You don’t have to wake up early in the morning to get ready for work and you also don’t have to brave congested roads to commute to the office. Some of the lifestyle changes will create a

Some of the lifestyle changes will create a need to change your auto policy.

The first and most common endorsement that you’ll need to make to your insurance after you retire involves how you use your vehicle. If you used to commute in your car or drive it to business meetings, you need to update how your car is classified. Instead of being a

Instead of being a commuter or a business vehicle, it’ll be classified with a pleasure rating.


What does a pleasure rating mean for you?

No work means no commute and that translates into savings. Commuters pay more for their insurance coverage because they have to be on the road during peak hours where drivers are stressed and in a hurry.

These conditions mean that drivers are exposed to more accidents. When your usage is changed, your rates can drop by as much as 10 percent.

Not all retirees drive less than professionals. If you’re the type of person who wants to be out of the house discovering new places, you may wind up driving more in your golden years than you did when you were stuck in the office nine hours a day.

If you’re planning on putting less mileage on your car, let your agent know. Premiums are strongly based on how much you drive. The more you drive, the more you’re exposed to loss. Drivers with high estimates pay higher rates.

If you’re planning on driving less than 10,000 miles per year, there could be room for a low-mileage discount.

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Do you need to update your coverage when you retire?


Do you need the same level of protection when you retire? The short answer to the question is yes, probably.

Just because you’re not bringing home a regular paycheck doesn’t mean that you don’t have income coming in. You need to protect all of your assets and your retirement savings from people in today’s litigious society.

You don’t want to lower raised liability limits that you have but you could consider removing some first-party coverage that you possess. Evaluate your medical insurance limits before you remove Medical Payments from your package.

You may also want to drop collision, which could save you a pretty penny. Just beware of dropping collision if you can’t afford to repair your car on your own.

Look For Discounts That Seniors Can Qualify For

If you’re a senior and you’re retired, your rates might start to climb even after the changes that you made. That’s because rates are age-based and when you grow older you become a riskier driver. If you want to save money, here are some of the discounts to look for:

  • Mature Driver Training Discount
  • Daytime Driver Discount
  • Multi-line and Multi-car
  • Discounts for being a member of an association like AARP

Some auto insurance providers want to insure the growing population of senior drivers and others don’t. You can sift through all of the carriers by looking at the rates and seeing which rates are competitive.

You can’t reasonably get quotes from every carrier in your state but you can shop around effectively by using the Internet. Use our online quote platform and you can find low-cost insurance as a retired driver.

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