Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Oct 5, 2020

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Here's what you need to know...

  • Some car insurance companies help recent retirees manage their expenses by offering a recent retiree discount
  • Other changes to your driving behaviors and coverage needs in retirement may alter your car insurance rates
  • The recent retiree discount is a short-term or temporary discount, so retirees should plan their finances accordingly
  • Recent retirees discounts may reduce full coverage car insurance rates by up to 4%

Many working adults actively dream about and plan for retirement for many long years or even decades before they finally take the plunge and retire.

Retirement is a monumental step in any person’s life, and it brings considerable financial change to your household.

If you plan to continue driving a car in retirement, you will still need to maintain an auto insurance policy per state law. Your car insurance premium will be a regular expense in your retirement budget until you stop driving.

Some providers after a recent retiree car insurance discount that could help you to save money on your premium.

This savings is usually a short-term or temporary discount, so it is often helpful to thoroughly shop around and find the best deal available on car insurance before or immediately after you retire.

Compare car insurance quotes today to see how much you could save by switching providers. Enter your ZIP code into our free rate comparison tool above to begin.

Table of Contents

How Retirement Can Alter Your Car Insurance Needs

In your working years, your car insurance rates are influenced by the regular distance that you travel as you commute back and forth to work as well as by your selected coverage limits and types.

In retirement, you may adjust your coverage limits and types, and you may also stop driving as frequently.

More than that, some retirees even downsize in this area of their lives, and they may purchase more affordable cars to insure or become one-car households. You may also move to a new location for retirement, and this also could affect your auto insurance premium.

The Impact on Your Premium

Each of these important factors can affect your premium in some way, and many of them will work in your favor to help you save money on car insurance.

Your qualification for a recent retiree car insurance discount can also result in a lower premium for at least a short period of time.

Because so many different factors related to your car insurance premium will change when you retire, it makes sense to thoroughly shop around and compare all of the options available and to find a recent retiree discount that can help you to save money.

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Your Need for Coverage

Coverage needs can change in retirement, and you need to ensure that you set up the most affordable policy that meets your needs.

After all, you may not want to pay a high premium, but you also do not want to risk the financial ramifications associated with being underinsured in a serious accident.

Understand your current requirements for coverage, such as through your state law and your lender’s requirements. Then, determine if you would benefit from purchasing additional coverage in retirement.

A recent retiree discount can make it more affordable for you to buy the full amount of coverage that you need.

An Affordable Deductible

A recent retiree discount can help you to make your premium more affordable, but an adjustment to your deductible can also accomplish this goal.

A higher deductible generally results in a lower premium amount. However, if you are trying to keep your out-of-pocket expenses related to a claim to a minimum, choosing a lower or more affordable deductible may be a great idea.

The Potential to Qualify for a Recent Retiree Discount

Only a few car insurance companies offer a recent retiree discount, and you will need to thoroughly review the options to discover which providers offer these savings.

Remember that the qualifications for the discount may vary by provider. Some providers may require both individuals on a policy to be retired or for you to be a certain age before benefiting from this discount. Other providers have less stringent requirements.

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Finding the Right Car Insurance Company for Your Retirement Years

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Car insurance may be a regular expense in your budget, and you may be eager to take advantage of the recent retiree discount to save money on it.

However, auto coverage also is beneficial and can help you to avoid digging into your nest egg if you are involved in an accident or have to file a claim for another reason.

The best car insurance company for your retired years will have excellent savings opportunities that many retirees may qualify for and will also be trustworthy and respected.

Using the Recent Retiree Discount to Save Money

The recent retiree discount is usually only applicable to select policies for a limited period of time after you retire. For example, it may not be in effect at your next renewal date, and this can result in a higher premium amount going forward.

If you choose to use the recent retiree discount to save money now, also look for other discounts that may help you to save money on your premium.

Other relevant discounts that may be applicable to some retirees include:

Selecting an Insurance Provider You Can Trust

Be sure to thoroughly review the financial strength and consumer reviews for all providers that you are thinking about buying coverage from.

While the recent retiree discount is a great way to save money on your premium immediately after you retire, this is not the only factor that you should base your buying decision on.

Saving Money When Your Recent Retiree Discount Expires

You may need to plan ahead for how you will keep your car insurance premium low when your recent retiree discount expires. These are some thoughtful ideas that may work well for you:

  • Pay your premium in full
  • Set up automated premium payments
  • Take a defensive driving course
  • Ask for a higher deductible

All drivers can benefit from shopping for new car insurance rates periodically, and this includes retirees. Remember that factors related to your age, credit rating, driving record, and more can all fluctuate and can cause your rates to change as well.

By shopping for new rates periodically throughout retirement, you can continue to save money on your coverage. Enter your ZIP code below to begin shopping today.