12 ways to lower your car insurance after 50
Which discounts are worth asking for, when a higher deductible makes sense, and how often to compare quotes once your driving habits change.
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Key takeaways
- Shopping your policy every year or two is the single most reliable way to avoid paying more than you need to.
- Retiring, driving less or dropping a commute can change your rating. Tell your insurer.
- A higher deductible and dropping collision on an older car can save money, but only if you can cover the gap yourself.
On this page
- 1. Compare quotes every year or two
- 2. Report lower mileage after you retire
- 3. Consider pay-per-mile or a driving-tracking program
- 4. Take an approved mature-driver course
- 5. Price a home-and-auto bundle (and price it separately)
- 6. Raise your deductible if you have savings to cover it
- 7. Re-check collision coverage on an older car
- 8. Don't cut liability to save money
- 9. Ask for every discount you might qualify for
- 10. Keep the driver list accurate
- 11. Know how credit can affect your price
- 12. Review your policy after big life changes
- Bottom line
Car insurance prices are set car by car, driver by driver and state by state, so there's no single trick that works for everyone. But drivers over 50 often have more levers than they realize: a cleaner record, fewer miles, a paid-off car and, for many, a home to bundle. Here are twelve things to check, roughly in order of how much effort they take.
1. Compare quotes every year or two
Insurers price new customers and existing customers differently, and your renewal price can drift upward even with a clean record. Getting three to five quotes for the same coverage at renewal is the most dependable way to find out whether you're overpaying. Compare like for like: the same liability limits, deductibles and add-ons.
2. Report lower mileage after you retire
Many insurers rate cars partly on how far and why they're driven. If you've stopped commuting, your car may qualify for a "pleasure use" rating or a low-mileage discount. Check your declarations page for the use and annual mileage listed, and update them if they're out of date.
3. Consider pay-per-mile or a driving-tracking program
If you drive only occasionally, a pay-per-mile policy charges a base rate plus a per-mile cost. Usage-based programs instead watch how you drive (through an app or a plug-in device) and may offer a discount for smooth, daytime driving. Read the terms first: some programs can raise your price based on what they record, and all of them collect driving data.
4. Take an approved mature-driver course
Many states require insurers to give a discount to older drivers who complete a state-approved accident-prevention course, often online. Rules differ on age, course length and how long the discount lasts, so ask your insurer which courses qualify before you enroll.
5. Price a home-and-auto bundle (and price it separately)
Buying home and auto insurance from the same company usually earns a multi-policy discount. But the bundle isn't always the cheapest total. Ask for the bundled price and the stand-alone prices, and compare against separate policies from other companies.
6. Raise your deductible if you have savings to cover it
Moving a collision or comprehensive deductible from $500 to $1,000 lowers your premium. It also means you pay more out of pocket after a claim. A higher deductible makes sense only if you could comfortably pay it tomorrow.
7. Re-check collision coverage on an older car
Collision and comprehensive pay up to the car's actual cash value, minus your deductible. On an older car with a low value, the yearly cost of that coverage can approach what you'd ever collect. Look up the car's value, subtract your deductible, and compare it with what the coverage costs each year. If your car is financed or leased, the lender will usually require it.
8. Don't cut liability to save money
Liability coverage pays for injuries and damage you cause to others. If you own a home or have retirement savings, state minimum limits may leave those assets exposed after a serious accident. Many people with assets choose higher limits and consider an umbrella policy. This is one place where saving a few dollars can cost a lot.
9. Ask for every discount you might qualify for
- Paying the full term upfront, autopay and paperless billing
- Safety and anti-theft features on your car
- A claim-free or violation-free record
- Professional, alumni, employer or membership group discounts
- Garaging the car in a locked garage
10. Keep the driver list accurate
Remove household drivers who have moved out and confirm who is listed on which car. If a grandchild or adult child will drive your car, talk to your insurer before they do. Our guide to adding a grandchild to your policy explains the options.
11. Know how credit can affect your price
In most states, insurers may use a credit-based insurance score when setting prices; a few states limit or ban this. Paying bills on time and checking your credit reports for errors at AnnualCreditReport.com can help over time.
12. Review your policy after big life changes
Retiring, moving, selling a second car, spending winters in another state or adding a new driver can all change your price. If you split the year between two states, read our snowbird car insurance guide.
Bottom line
Start with the free steps: update your mileage and use, ask for every discount and take an approved course if your state offers a discount. Then compare quotes for the same coverage. Keep liability limits high enough to protect what you own.
Frequently asked questions
Does car insurance go up at a certain age?
Prices are set by each insurer and differ by state. Some insurers' prices start to rise for older drivers, and the age varies. Comparing quotes is the only way to see how your own price compares.
How often should I shop for car insurance?
A good habit is to compare quotes at least every one to two years, and after any major change such as retiring, moving or adding a driver.
Is a mature driver course worth it?
If your state requires insurers to give a discount for an approved course, it often pays for itself. Ask your insurer which courses qualify and how long the discount lasts.
Sources
- Insurance Information Institute: How to save money on car insurance
- NAIC: A Consumer's Guide to Auto Insurance
- AnnualCreditReport.com (free credit reports)
This guide is for general education and isn't individual financial, insurance, legal or tax advice. Rules and prices vary by state and company. Spot an error? Tell us and we'll review it under our corrections policy.
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Adding a grandchild to your car insurance: what it costs and your options
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