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Retirement, working from home or a shorter commute can cut how much you drive. Your car insurance may still reflect the miles you used to log. Here’s what to review, and how to compare offers in about 5 minutes.
How far drivers go each year
15,291
miles a year, drivers 35 to 54
7,646
miles a year, drivers 65 and older
Driving about half as much as you used to? Make sure your car insurance reflects it.
✓ Free · ✓ About 5 minutes · ✓ No obligation to buy
Source: Federal Highway Administration, average annual miles per driver by age group, from its National Household Travel Survey (2001 data).
When did you last update the mileage on your car insurance? If you’ve retired, started working from home or simply drive less than you used to, your policy may still be priced for the driver you were. Comparing offers takes about 5 minutes, and it’s free.
MoneyTalksNews has covered personal finance since 1991. Car insurance is one of the few big bills you can price again on your own schedule, and a change in how much you drive is one of the clearest reasons to do it.
The stakes add up. You pay this premium every six or 12 months for as long as you drive. On a fixed or tighter retirement budget, paying for miles you no longer drive is money that could go toward groceries, travel or the grandkids instead.
What May Be Out of Date
Why Your Policy May Not Match How You Drive Now →
A policy renews with the details on file until you change them. These are the ones most likely to have shifted:
Your Annual Mileage
When you bought your policy, you estimated how far you drive each year. Mileage is one of the factors many insurers use, because more time on the road means more chances for a claim. Federal Highway Administration survey data show drivers 65 and older average about 7,600 miles a year, roughly half of what drivers 35 to 54 log. If your estimate still reflects a daily commute, it may be worth updating.
How the Car Is Used
Policies typically classify a car by how it’s used, such as commuting, business or personal use. If you no longer drive to work, ask whether your car can be listed for personal use only.
Who Drives and What You Drive
Make sure the policy lists only the drivers and cars in your household now. A grown child who moved out, a second car you sold or a car that’s now paid off can all change what you need and what you pay.
Discounts That May Now Fit
Many states, including Florida and Pennsylvania, require insurers to offer a discount to drivers 55 and older who complete an approved driver improvement course. In Pennsylvania, the law sets a minimum 5% discount when every named driver on the policy is 55 or older and has completed one. Some insurers also offer low-mileage discounts, and pay-per-mile programs, which charge a base rate plus a set amount per mile, may suit drivers who rarely take the car out.
Compare offers based on the way you drive today. Comparing offers for the same coverage is the clearest way to know whether you’re paying more than you need to.
Why It’s Worth 5 Minutes
What Comparing Does for You →
Why do it?
Every company prices your driving differently
Each insurer uses its own formula. One may weigh mileage heavily, another your ZIP code or your car’s repair costs. So the same driver with the same coverage can get very different prices. Comparing shows which companies price your situation best.
How does it help?
It can free up room in your budget, renewal after renewal
If you find a lower price for the same coverage, that difference stays in your pocket at every renewal. If your current policy is already competitive, you’ll know that too, and you can stay put with confidence instead of wondering.
Why make it a habit?
Your price and your life keep changing
Insurers update their pricing regularly, and your driving, your car and your household change too. A quick comparison at each renewal is the simplest way to keep this bill in step with your life. Checking never commits you to switching.
Curious where your price stands? Compare offers in about 5 minutes
Quick Self-Check
Has Your Driving Changed Since You Last Compared? →
If two or more of these apply to you, it’s a good time to compare offers:
- ✓You’ve retired or stopped commuting
- ✓You work from home some or all of the week
- ✓You drive noticeably fewer miles than a few years ago
- ✓Your car is paid off
- ✓A driver or a car has left your household
- ✓You’re 55 or older and haven’t asked about a driver course discount
About 5 Minutes
How to Compare Offers, Step by Step →
There’s no paperwork to mail and no agent appointment to book. You can do this from your phone or computer.
- Pull up your declarations page. It shows your current limits and deductibles, so you can compare like for like.
- Enter your ZIP code and your car. Year, make and model, or the VIN if you have it handy.
- Add the drivers. Basics like age and driving history for each person on the policy.
- Add your contact details and see your options. You’ll be asked for an email address and phone number, so use ones you check. Compare offers for the same coverage. Nothing is purchased unless you choose to buy.
Free · No Obligation to Buy
Compare Offers Based on How You Drive Today
The comparison tool featured here is Insurify. It’s free to use, and comparing doesn’t commit you to buying anything. If your current policy is already your best option, you’ll know you checked.
✓ Free · ✓ About 5 minutes · ✓ No obligation to buy
The Bottom Line
If you drive about half as much as you once did, it makes sense to check that your car insurance reflects the driver you are today. The drivers who keep this bill in check share a habit: they update their policy when their life changes, and they compare offers at renewal, for the same coverage, before they decide. It takes about 5 minutes, and it’s free.
Driving less? Check whether you could be paying less.
MoneyTalksNews is an independent personal finance publisher. We may earn a referral fee from partner services at no cost to you. Our editorial recommendations are based on merit, not compensation.
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