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A Nifty Retirement Perk: Lower Auto Insurance Quotes

March 30, 2015
Auto Insurance, Insurance
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When you think of insurance and retirement, finding lower auto insurance quotes might not be the first thing that comes to mind — your health plan probably seems more pressing. But retirement is a great time to reassess your auto coverage needs, and car insurance for retired drivers usually comes with low premiums, at least at first. Here’s why:

  • You likely have a good driving record. Older drivers who confuse the brake and the gas pedal might make the news, but they’re in the minority. In 2009, 4 out of 100 drivers age 65 and older were involved in an accident, according to the latest data from the U.S. Census Bureau. That’s half the accident rate for drivers ages 35 to 44 and a fifth of the accident rate for drivers age 19 and younger.
  • You’re eligible for low-mileage discounts. When you drive less often you’re less likely to get in an accident. So when you no longer commute and put fewer miles on your car, your insurer should charge you less.
  • You’re eligible for retirement discounts. Some insurance companies provide additional opportunities for you to save money. For example, Liberty Mutual and Allstate offer specific discounts for new retirees, and many other companies let older adults save by taking defensive-driving courses.

Some companies have additional perks for retirees:

  • Geico provides a guaranteed renewal policy for drivers age 50 and older who haven’t had any accidents in the past three years and don’t have a driver younger than age 25 on their policy.
  • AARP members who sign up for auto insurance from The Hartford through the organization can buy added benefits such as RecoverCare, a program that pays for up to $2,500 worth of help around the house if a member is injured in a car accident.
  • Retired early? As long as you’re at least age 55, Allstate will give you a “55 and Retired Discount.”

Getting auto insurance quotes every year is always a good way to lower premiums, but if you haven’t checked in a while, consider comparison shopping when you reach retirement. You can always gather quotes yourself, or an independent agent can recommend others with great benefits and rates. After all, when you’re living on a fixed income, saving on car insurance is a smart way to stretch your budget.

Alice Holbrook is a staff writer covering insurance and investing for NerdWallet. Follow her on Google+.

Photo via iStock.