Cheap car insurance for retired drivers

Retired drivers are among the safest on the road, which should entitle them to some of the best carinsurance deals. That’s not always the case, but there are ways to lower your car insurance premium and improve the level of cover you enjoy. Here’s our guide to retired drivers getting a great car insurance deal at a keen price.

What’s unique about car insurance for retired drivers?

Most drivers reaching retirement age have been driving for many years. This makes them the most experienced group of drivers on the road. They are half as likely to be involved in a collision as the highest risk categories of driver and the premiums paid by retired drivers are generally about two-third of the price for their less knowledgeable counterparts. However, there’s a perception that retired drivers are more dangerous and less decisive, so it pays to be clear and firm when looking to renew car insurance when retirement comes around.

What insurance will you need?

The good news is there’s no difference between car insurance for those in work and others who have retired. You have the same choice between Third Party, Third Party, Fire and Theft, and Comprehensive policies. As an older, more experienced driver, you’re likely to opt for the third of these choices, but you need to make sure it includes everything you require from cover.

Many retired drivers may cover fewer miles overall than they did when working, but the type of driving they do changes. You may not commute anymore, yet you might undertake longer trips abroad, so be sure your car is covered for the full number of days you’ll be out of the country during the 12-month period of the insurance policy.

How to lower your premium

Always tell your insurer of any change in your circumstances. While retiring may not affect the way you drive, it can have a big bearing on the amount of driving you do. It can also change when and where you drive as you no longer have to commute during rush hour. All of this is good news for lowering the cost of your premium because you can remove the commuting element from your policy. If you’ve also been using your car for business travel, this can be excluded from the policy to help bring the price down.

Shop around. Older drivers are often more loyal to their existing provider, but check out what other insurers can offer and use this to lower your existing premium*. Automatic renewals can push up the price, so be ready to take your business elsewhere if you don’t get the best deal from your current insurance company. There are several companies that specialise in older and retired drivers, so use them. You can find a list of these insurers on the British Insurance Brokers’ Association website (

Some retired drivers may still be sharing their car with a son or daughter. By removing them from your policy, this will lower your premium. You could also opt for a slightly higher voluntary excess, which is the amount you pay on any claim before the insurer pays out. It’s also worth paying out of your own pocket for any minor damage to your car, such as paint scratches, rather than making a claim and losing your no-claims discount.

When you retire, you may not need a larger car any more, so it’s the perfect opportunity to swap to a smaller, cheaper to insure car. Choosing a model with a lower insurance group and plenty of safety kit will also make it cheaper to insure. You could also consider taking an advanced driving course to underline your skills and some qualifications provide insurance discounts, such as the IAM’s RoadSmart course.

Anything else?

Older retired driver may find it more difficult to obtain affordable car insurance when the reach 85-years old. Insurers are not obliged to offer cover to anyone and they will often cherry pick those drivers they consider the least risky. However, there’s no statistical evidence that retired drivers are any more likely to be involved in a collision. The reality is drivers over 60-years old are half as likely to be in a crash as those aged 17-24.


We used* to compile any insurance quote examples in this article.


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