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Auto Insurance Discounts & Grants for Seniors Drivers

Are you over 55 and want to pay less for car insurance? Learn the ins and outs of car insurance discounts and grants for seniors.

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Growing older has some advantages, including saving on your car insurance. Car insurance companies like older drivers because they are more likely to follow the rules of the road when they get behind the wheel. To get seniors’ business, most car insurance companies entice them with discounts–some direct and some indirect. To encourage you to make the switch, insurance companies try to make it easy for you to change companies and load up on savings.

Car insurance companies like to have seniors as their customers because they pose fewer risks than other age groups. Here are some other reasons seniors save on car insurance:

Reason #1

Seniors are safe drivers

According to the American Automobile Association (AAA), by the year 2030 more than 70 million people will be 65 or older and nearly all of them (85%-90%) will have valid driver’s licenses. Americans are growing older and remain on the move. Fortunately, seniors tend to be among the safest drivers on the road. According to the Insurance Information Institute, many seniors stay home when there’s heavy rain, ice, or snow, or when road conditions otherwise may be hazardous. Senior drivers also tend to avoid areas where driving can be more dangerous, such as superhighways or roads with poor traffic patterns, choosing quieter backroads instead. Seniors tend to drive at off-peak hours, when fewer cars are on the road. After all, retirees don’t have to fight rush-hour traffic to get to the office. According to AAA, seniors tend to obey speed limits, wear their seatbelts, and are less likely to drink and drive.

Reason #2

It’s the law

In 34 states and the District of Columbia, the law says seniors who complete an approved mature driver safety course must be given discounts on their auto policies. The age at which you qualify for this opportunity varies from state to state. The youngest is 50; the oldest is 65. Even if your state does not have such a law, insurers still may provide a discount to encourage you to sign up for a safety course. The courses are designed to help seniors brush up on their driving skills. Courses take between four and eight hours to complete. Some are in-person and some are available online only (especially post-pandemic). Organizations such as AAA, AARP, and the National Safety Council all offer mature driver safety courses. Plus, some insurance companies have their own courses open to their senior policyholders. Typically there’s a small fee for the courses, but it’s likely to be much less than what you will save with the discount.

Discounts for Senior Drivers

As a senior driver, you’ve gained experience and can use your good driving record to your advantage to save money. Here are 10 discounts that you may be able tap into as a senior to save anywhere from 5% to 20% on your insurance premiums. The savings may seem small, but they can add up to hundreds of dollars. Go for any and all that you qualify for now, then revisit the list in a few years when more savings may be headed your way.

  1. Low-mileage Discount

    Insurance Information Institute

    Retired? You’re likely driving fewer miles than when you worked and commuted daily. Call your insurance company when you retire and let them know. How much you drive factors into your rates; you can save 5% to 30% if you’re driving less. The average driver puts 12,000 miles a year on his or her car, so anything under 10,000 could qualify you for a low-mileage discount. According to the U.S. Department of Transportation Federal Highway Administration, the average annual mileage for those 65 and older is 7,646 miles, making low-mileage discounts an option likely to pay off.

  2. Retired Government and Military Discount


    Some insurance companies such as GEICO offer discounts for those who served in the military and are now retired, including members of the National Guard or Reserves. Depending on your car insurance and your coverage, the discount may be up to 15%. Other companies that offer discounts to veterans include: USAA, Armed Forces Insurance (AFI), Esurance, Farmers, and Liberty Mutual. Each company has its own verification process but you are likely to need documentation of your service, such as D214 Member 4 copy, your discharge certificate, or your leave and earnings statement from the branch in which you served.

  3. Driver Safety Course


    Complete the AARP Smart Driver course and you could be eligible for a multi-year discount on your auto insurance. Better yet, if you’re a member of AARP you’ll save 20% on the cost of the course. The course covers safety tips that are important to older drivers including proper use of safety belts and current technology such as air bags, anti-lock brakes, and cruise control. The course also covers how to adjust your driving to compensate for age-related physical changes. Other organizations that offer driver safety courses for older adults include AAA and the National Safety Council. Check with your insurance company before signing up to be sure that the course you take qualifies you for a discount.

  4. Multi-policy Discount


    Many companies, such as Progressive, offer multi-policy discounts. Insure your cars and your home or condo with Progressive and you’ll get a discount on both. Don’t have a house? You can bundle your auto and renters insurance. Progressive also offers multi-policy discounts for these combos: motorcycle/boat, boat/RV, renters/motorcycle/boat, etc. You’ll save an average of 4% by bundling policies, and new customers may save as much as 20%. Bundling not only saves you some money, but it also makes your life easier with less paperwork and fewer contact numbers and emails to keep track of. Liberty Mutual also offers discounts for bundles, as do many other insurance companies.

  5. Pay in Full

    Say Insurance

    If you live in Colorado, Illinois, Indiana, Kansas, Missouri, or Tennessee and you buy your policy from Say Insurance, you can save 10% if you pay in full every six months rather than monthly. That option is especially appealing to seniors, who don’t have many of the same monthly expenses as they did when they were younger. So paying your car insurance in full could be easier to do and worth the discount. You may not have to wait until it’s time to renew your policy; typically you can get the pay-in-full discount in the middle of your term with the amount prorated. Besides Say Insurance, other companies offer pay-in-full discounts so be sure to ask if yours does.

  6. Usage-based Insurance

    State Farm Drive Safe & Save

    Some companies, such as State Farm, offer this deal: Use technology so they can track and record your driving behavior and they’ll lower your premiums to reflect how much you drive and how safe a driver you are. Maybe this option didn’t have appeal when you were younger, but now that you’re older it could be a good opportunity for savings. Progressive offers a similar program called Snapshot, which it says saves drivers an average of $146 a year.

  7. Be a Responsible Customer


    Allstate is one of many insurance companies that rewards you for handling your insurance policy in a responsible manner. For example, you can save money if you renew and sign your policy at least seven days before it becomes effective or if you have your premiums automatically taken out of your bank account each month, eliminating the risk of missing a payment. You can also get a discount from Allstate for going paperless.

  8. Be Loyal

    USAA, AAA, American Family

    If you and your children get your car insurance from the same insurer, you may be able to save as much as 10% on your policy. Insurers such as USAA offer a family discount when members of the same family have policies with them. Stay with your insurance company for a number of years, and you likely qualify for a loyalty discount as well. AAA also offers a loyalty discount based on how long you’ve been a member; the longer you’ve been a member, the greater your discount. Some AAA members save as much as 20% on their premiums. If you want to pass on the savings, American Family offers a “generational” discount to children whose parents insure with them.

  9. Drive Well


    GEICO drivers who have squeaky clean driving records can do some serious saving. Those who go accident-free for five years may be able to save as much as 22% on most coverage. Wear your seat belt every time you’re in the car and you could save on the medical payments or personal injury protection part of your premium.

  10. Store Your Vehicle


    What if you go to Florida for the winter? Leave your car at home and ask your insurance company for cheaper “snowbird” or “parked vehicle” coverage during the months of the year you’re away. While you’re in Florida, opt to walk, take public transportation, or use a ride-sharing service to get where you want to go. Remember, you don’t want to completely cancel or drop insurance for the car that’s in a garage for a few months because mishaps can still happen. At a minimum, keep comprehensive coverage in case the car is pummeled by hail or a tree falls on it.

Other Ways for Seniors to Save on Car Insurance

You surely can save a substantial amount of money if you look for and apply all the discounts available to senior drivers. But remember, you also qualify for discounts that are given to drivers of all ages as long as you meet the criteria. See which of these you may qualify for–from raising your deductible to installing anti-theft devices–and discuss them with your agent.

Drop Unnecessary Coverage

When you get older, it’s a good idea to review your auto insurance policy and see if you have coverage for things you may no longer need. For example, if you’re retired, do you need rental car insurance in the event of an accident? If your car is older, do you need collision and comprehensive insurance? What would the payout be if your car were in an accident? The rule of thumb is that, if your car is worth less than 10 times the cost of this portion of your premium, think about dropping the coverage.

Up Your Deductible

Review your finances and how much you have in savings in the event of an emergency. The higher your deductible, the lower your premiums. Could you afford to pay $250, $500, or $1,000 out of pocket in the event of a claim? If so, talk to your agent about raising your deductible. Then set aside the amount you save each month so it’s available if you do have to pay the deductible—and if you don’t have to use the money, you’ll come out ahead.

Go Shopping

Your insurance company may give you a lower price because you’ve been with them for a long time. However, as the commercials you see for automobile insurance companies say, you may be able to save by switching. Get quotes from multiple insurance companies to be sure you find the best rate for you and your circumstances. If you retire and move to a new location, you definitely want to shop because the company that gave you the best price in your old location may not be the same as the one that gives you the best price in your new location. When comparing rates, be sure you’re comparing apples to apples to avoid unpleasant surprises.

Bundle Your Other Insurance Policies

Have you started a new hobby in your retirement years? Bought a boat to go fishing or cruising? Bought an RV to travel the country? Insurance companies typically give discounts when you buy multiple policies from them. A typical bundle includes auto and home insurance. Some insurance companies also give discounts when you bundle policies for not only your car and house but also your boat, RV, and motorcycle. While you’re shopping for the best policies and discounts, ask about discounts for other insurance that you may need and save 5% to 25% on each policy.

Keep Your Insurer Up to Date

Has something significant changed in your life? Perhaps you got married, divorced, or lost a spouse? Moved to a retirement community or moved in with one of your children? Check with your insurance agent about how any of these events affect your premium. Also, if you had a moving violation, ticket, or accident, usually after three years your rates will go back down—but don’t rely on your insurance agent to tell you that. Check with your agent after passing the three-year mark and make sure your rates decrease.

Improve Your Credit Score

Maybe you’ve paid off your mortgage and other loans. You’ve paid down your credit card bills and carry little to no balance. You now have a track record for paying bills on time. Your credit rating is a way to show you’re a responsible consumer, and it factors into the rates you’re charged for your insurance policies. If at this stage in life you’ve improved your credit rating, let your insurance company know. It could translate into savings on your premiums.


Now that your kids are grown and gone, do you still need that seven-passenger SUV? Probably not. If it’s just you and your spouse going to the store and doctor’s appointments, why not consider getting a smaller, more economical car for family transport? Ask your insurance company about the replacement cars you’re considering and which is the cheapest to insure. Factor that into your buying decision. Newer cars also have safety features that can help lower your premiums as well.

Install Anti-Theft Devices

Many insurers offer discounts for anti-theft devices, including GEICO, Nationwide, USAA, State Farm, Allstate, and Liberty Mutual. The amount you can save depends on your insurer and what devices your car has. If you subscribe to OnStar, you’re likely to get a discount. Do you live in an area where tires are a target for thieves? Buy a wheel clamp that locks your vehicle’s tires, making them impossible to steal. If car theft is on the rise in your area, Car and Driver magazine says that for about $10 you can install a hidden kill switch that cuts electricity at the ignition to prevent thieves from driving off with your car. Gadgets like these cut the risk of a stolen car and can lead to insurance savings.

Join the Group

One of the perks of joining groups such as AARP is a discount on your car insurance. A partnership between AARP and The Hartford offers AARP members up to 10% savings. Have you signed up for AAA? AAA members are eligible for a variety of discounts on their car insurance including multi-policy, low mileage, new car, safe driver, etc. In some states such as Massachusetts, members of BJ’s Wholesale Club can get discounts through GEICO. You also can get discounts through membership at Sam’s Club and Costco.

Switch Your Insurer

Yes, you can save by being loyal and sticking with the same company for years or even the same company as your parents and grandparents had. You also have the option of going rogue and finding a new company to insure your cars and other valuables. Some companies such as American Family discount your auto premium if you come to them from one of its competitors. Also, if you see your premium jump and your company won’t do better, save yourself money by finding one that will. You won’t be penalized no matter how often you change insurers. Just note that the best time to switch insurance companies is at the end of your policy so you don’t incur any cancellation fees.