15 Ways Seniors Can Save Big on Car Insurance

NEWS & TRENDING - INSURANCE NEWS
Get great coverage while taking advantage of senior discounts and other ways to save.
Updated May 8, 2024
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If you're retired and on a fixed income or need to supplement your Social Security, you probably want to find ways to trim your bills so you don’t run out of money.

Cutting the cost of car insurance can help. Here are 15 ways older adults can save money on car insurance.

If you’re over 50, take advantage of massive discounts and financial resources

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Shop around

Azeemud/peopleimages.com/Adobe elderly couple with laptop

One of the best ways to save money on car insurance is to shop around and compare costs when looking for a new policy.

By shopping around, you can find the provider that offers the best price for the coverage you need.

Bundle your insurance policies

Jelena Stanojkovic/Adobe man with paperwork

Bundling your policies is a great way to save on car insurance as well as other insurance coverage.

Insurance companies typically offer a discount to those who purchase multiple types of insurance, including car insurance, home insurance, and other types of coverage.

Reduce your coverage for an older car

Vane Nunes/Adobe multiracial people working inside office

If you have an older car, chances are good that its value has plunged over the years. If the car is old enough, carrying collision and comprehensive coverage might no longer make sense.

Although dropping these coverages can save you money, remember that without them, you will be responsible for paying out of pocket for all repair bills to fix your car.

Resolve $10,000 or more of your debt

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How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

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Consider insurance costs when buying a new car

Thurstan Hinrichsen/peopleimages.com/Adobe  senior couple working on their finances

If you're thinking of buying a new car, call your insurance company and ask how much it will cost to insure the models you're interested in.

Knowing this information can help you buy a car with lower insurance costs, which can save you a lot of money over the vehicle's lifespan.

Take a defensive driving course

Nomad_Soul/Adobe driving school

Some insurance companies offer a discount to seniors and others who complete a defensive-driving course.

Participating in a driving course can be time well-spent if you can save money on insurance.

Ask about senior discounts

Tom Wang/Adobe  seniors couple enjoying road trip

Some insurers offer discounts to drivers who are 50 or older. So, ask your insurance company what type of senior price breaks are available.

Check on a low-mileage discount

SKW/Adobe seniors talking to insurance staff

Upon retirement, you can ditch your commute and the extra miles you were putting on your car each day.

Driving fewer miles might get you a discount on the price of your insurance. Talk to your agent or a company representative to see if your insurer offers price breaks to those who drive relatively few miles annually.

Think about raising your deductible

sebra/Adobe businesspeople discussion advisor

One way to cut back on the cost of your insurance is to raise your deductible. This should result in lower premiums.

However, remember that you are responsible for paying your deductible before your car insurance company starts to pay to cover a claim.

Keep your driving record clean

dusanpetkovic1/Adobe Man holding hands on steering wheel

Insurance companies reward good drivers, so keeping your driving record clean can help you keep costs down.

If you steer clear of moving violations or accidents, there's a good chance you'll be rewarded with lower rates.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

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Apply for a Discover Cashback Checking account today

Keep your car well-maintained

hedgehog94/Adobe senior man looking at car engine

Keeping your car in good running shape might prevent a sudden breakdown that can lead to an accident.

Not only does proper maintenance keep you safe, but it also reduces the likelihood of getting into a wreck that might drive your car insurance costs higher.

Move to a neighborhood with lower insurance rates

Michael Moloney/Adobe high end real estate in bonita springs

Few people would move just to save money on car insurance. However, if you plan to move anyway, a side benefit might be lower insurance rates.

Insurers often consider the neighborhood in which you live when setting rates. For example, people living in one part of the city might pay higher costs on average than someone who lives across town.

Sign up for a safe-driver program

Tom Wang/Adobe  seniors couple enjoying road trip

Some insurance programs have safe-driver options in which you agree to let the insurer monitor your driving habits in exchange for a potential discount.

A provider may keep tabs on how you drive, where you drive, and when you drive, for example.

Check on anti-theft options

WavebreakMediaMicro/Adobe senior couple planning their investments

If your car is equipped with an anti-theft device, it might result in a discount. Check with your insurance company to see if it offers this option.

Pay your bill ahead of time

Kawee/Adobe old man signs on paper

Many people pay their insurance premiums monthly. However, if you're willing to pay up to six months or a year in costs at once, you might get a discount.

Get a membership discount

Photographee.eu/Adobe senior people signing life insurance

If you belong to an organization such as AARP or AAA, you might be eligible for lower-cost car insurance.

Insurers may offer discounts to members of these organizations, so see what kind of deals you can get.

Bottom line

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Car insurance costs can eat into your budget if you’re on a fixed income, but there are options that can help you save money.

So, look into some of the potential savings on this list and see if any of them can help you cut costs and help you keep more cash in your wallet.

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.

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