How can seniors save money on car insurance?

Car insurance is a significant expense, and for seniors living on a fixed income, finding ways to lower premiums can make all the difference.

Insurance providers consider various factors when setting rates, including age. Fortunately, seniors often qualify for discounts due to their experience on the road.  Many insurance providers offer reduced premiums for drivers over 60.

Why? Years of driving experience, combined with safer driving habits, often place senior drivers in a lower risk category. Seniors with a clean driving record can benefit greatly from this, so it pays to ask your insurer about age-specific discounts or group savings programs tailored to mature drivers.

Stay safe, stay insured

According to most recent data from Transport Canada, Canadian drivers aged 65+ have the highest fatality rate (22%) amongst other age groups.

While experience is valuable, driving skills can decline with age. Seniors who actively refresh their driving knowledge may not only stay safer on the road but also save money on premiums.

Safe driving courses for seniors

Many provinces offer mature driver programs or refresher courses specifically for seniors. These courses cover updated traffic laws, defensive driving techniques, and common risks older drivers may face. Completing one can help you regain confidence, stay safer behind the wheel, and often qualifies you for a discount.

For example, in Ontario, completing a Ministry-approved senior driver training program could entitle you to premium savings from certain insurers.

Maintain your driving record

A clean driving record remains one of the biggest factors in lowering insurance premiums. Avoid traffic violations, follow speed limits, and remain vigilant at intersections to keep your record spotless. If an accident occurs, consider paying minor claims out of pocket to avoid rate increases—this may save you more over time.

Related: A senior’s guide to car insurance

Provincial regulations for senior drivers

Driver's license renewal requirements evolve as we age, and keeping up to date with these conditions can help ensure you’re always road-ready. Here’s what you should know.

In Ontario, once you hit the age of 80, you're required to renew your driver’s licence every two years and participate in a mandatory driver’s licence renewal program to test your driving abilities. The program includes:

• A vision test
• A 5-minute screening exercise

If necessary, depending on how the vision test and screening exercise go, you may need to complete one or more of the following, as well:

• Pass a road test
• Submit medical information
• Provide additional vision information from an optometrist or doctor

In Alberta, seniors must begin meeting specific renewal requirements once they turn 75 years old. Here’s what you need to know:

• Age and frequency: Mandatory medical reports are required every two years starting at age 75 and annually after age 80.
• Medical report: A doctor must complete an assessment of your overall health and vision. If necessary, they may recommend a driving test to evaluate your abilities.
• Renewal steps:
  • Visit your doctor for a medical report.
  • Submit this medical report to Alberta’s Registry Agent Services, where you can renew your license.
  • Depending on the results, you may need to schedule a driving assessment.

Similarly, provinces like British Columbia or Manitoba also have programs that assess the abilities of senior drivers, including vision tests or medical evaluations. Staying informed about local requirements keeps you compliant and minimizes any interruptions to your coverage.

Related: A guide to getting your driver’s licence in Alberta

What auto insurance discounts are available for mature drivers?

Many insurance companies offer a few discounts you may qualify for, including:

Senior drivers discount. Many insurance providers will offer a reduced rate (up to 15%) for people aged 60 and older who are retired and have clean driving records.

Usage-based insurance discount. You can potentially earn a monthly discount by enrolling in an insurance provider’s usage-based insurance program, which uses telematics technology to monitor your driving habits —such as how far you drive, your speed or how smoothly you brake.

For seniors who drive infrequently and cautiously, UBI can bring significant savings to your premiums.

Bundling discount. Combining your home and auto insurance policies with one insurance company can get you a discount. Likewise, if you have more than one vehicle, consider insuring them with one provider for a multi-vehicle’ discount between 10-15%.

If your insurance company doesn’t offer a bundling discount, look around for another insurance provider that does.

Low mileage discount. If you do not commute to a workplace often or at all, or if you’re driving fewer kilometres per year, talk to your broker about changing your vehicle classification to “pleasure”. Lower annual mileage can place you in the "low-use driver" category.

Seniors may also benefit from pay-as-you-go car insurance. The less you drive, the less you will pay.

Vehicle safety discount. Suppose you have a newer vehicle that is equipped with Advanced Driver Assistance Systems, such as lane departure mitigation, blind-spot detection, and rear-view cameras to assist when reversing or parking. In that case, some insurance companies will provide discounts for those safety features.

Installing anti-theft devices. In response to the spike in auto theft, some insurers started imposing a $500 surcharge to owners of cars that are considered commonly stolen. This charge can then be lifted once the drivers provide proof of purchase of an anti-theft device. Using theft prevention devices won’t only provide you protection, they may also bring down your monthly premiums.

Discount for choosing a higher deductible. A deductible is what you must pay out of pocket if you file a claim. The higher out-of-pocket cost you’re willing to take on, the less your annual premiums will be. Assess your finances to decide what works best.

Canadian Automobile Association (CAA) discount. Members of CAA may qualify for an insurance discount as well as other benefits like roadside assistance. It’s worth looking into buying a membership to find out if you can benefit from it.

Learn more: As insurance premiums rise, quotes for usage-based auto insurance increase by nearly 20%

What are other ways seniors can save on auto insurance?

There are a few other strategies for seniors to reduce annual premiums. Consider these possibilities:

• Keep up with vehicle maintenance. While there are many things you can do on your own to ensure your vehicle is in good condition, having a professional mechanic do regular maintenance checks on it is vital. Doing so may reduce the chances of roadside breakdowns or mechanical failures that can lead to collisions.
• Remove collision coverage from your policy. Is your car, pickup truck, or SUV 10 years old or older? If so, you may want to talk to your broker about removing the collision coverage on it, especially if repairs would exceed the vehicle’s value.
• Shop around for a better rate. It’s always worthwhile to find out what your options are. Regardless of whether your auto policy is up for renewal or not, it never hurts to shop around for a lower car insurance premium.

Whether it’s through careful driving, taking advantage of discount programs, or staying informed about provincial regulations, your insurance premiums don’t have to strain your budget. By following these steps and exploring your options, you can enjoy peace of mind and reliability on the road—without breaking the bank.

Read next: How a car accident affects your insurance premium