Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 26, 2020

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Key takeaways...

  • The age at which you retire plays a role in the cost of car insurance
  • Driving a safe car should help you keep costs down
  • Senior drivers sometimes pay more for car insurance due to national statistics

The cost of car insurance is on the rise across the United States. Because of this rise, you may be wondering whether your unique situation impacts your car insurance rates.

If you’re currently retired or you are considering retirement, you may be surprised to know how that affects your premium.

Are you looking for more affordable auto insurance? Enter your ZIP code above and compare at least three to four policies today!

Table of Contents

How old are you at retirement?

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The age at which you retire is going to play a role in the cost of car insurance. The average retirement age across the U.S. is 65.

Many insurance companies identify this as the year when an individual becomes a “senior driver.”

Though it depends completely on the company you’ve chosen, many companies will increase car insurance rates for senior drivers, because they are statistically more likely than the average driver to be in an accident.

While teen drivers are notoriously the most accident-prone demographic, seniors are a close second. The cost of insurance is also higher for senior drivers, because they are identified as more likely to be severely injured in a major accident.

Anytime you are identified as being high-risk, car insurance is likely to cost you more. There is a greater probability of you being involved in an accident.

Your insurance company will increase your premiums as a way to protect themselves financially when having to pay out on claims.

If you are retiring at 40 or 50, the insurance premiums are not going to affect you as significantly. By getting quotes from several insurance companies, you can see what the cost impact is going to be to get a more affordable premium.

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How much driving are you doing?

One way you might be able to save money is by driving less.

Low-mileage discounts are often available from insurance companies. When you’re not on the road as often, you are less likely to be in an accident.

Some insurance companies require you to use a computer chip in your car for a month to track mileage and see just how many miles you drive in an average week.

When you retire and don’t have the commute to work any longer, it could add up to significant savings on your insurance premiums.

What kind of car are you driving?

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If you are retired, you likely no longer have children in the house. You probably don’t need to drive a minivan any longer, and you may choose to shop for a different make and model of vehicle.

A good safety rating on the car you choose is going to positively factor into the cost of insurance.

The safer the car, the less likely you are to get involved in an accident. The safety features will help save you money on your premiums, too.

If you choose to get a sporty convertible that has a poor safety rating, you will spend more on car insurance. You are more likely to experience injuries in the car, and the costs for repair may be significantly higher when the car has a high price sticker on it.

It’s a good idea to research the different cars to choose one that won’t cost you a fortune on insurance. Online quotes will allow you to get an idea on the cost of insurance before you buy a car.

You can counterbalance the cost of insurance by shopping for a car with more safety features. There are more advanced driving systems than ever, helping you with parking, changing lanes, and collision avoidance.

All of these safety features have the potential to help you save money on your insurance.

Calculating Your Insurance

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You’ll need to calculate the cost of insurance based on your individual details. When you choose to retire and how much driving you plan to do will be taken into consideration by car insurance companies.

In order to get quotes from insurance, you will need to identify your:

  • Age and gender
  • Zip code
  • Driver’s license number
  • Car’s VIN

All of this will be used by insurance companies to determine the cost to insure you. You can choose to increase or decrease the levels of coverage as long as you maintain state minimum requirements.

Getting quotes from multiple companies will also help you to achieve a more affordable premium. Otherwise, you could end up spending more just because you didn’t take the time to compare rates.

Depending on your circumstances, retirement could end up saving you money on car insurance or costing you more.

Take the time to get quotes to ensure you have sufficient coverage without spending more on premiums than what is necessary. Retirement doesn’t have to be expensive, especially when you know the ways to reduce various monthly payments.

If you’d like to save on your auto insurance, start comparison shopping today for better rates by entering your ZIP code below!