When you retire, a lot changes, including how much you pay for car insurance. Although you may not realize it when you stop working, there are several things you can do to lower your auto insurance cost. Learn more about what you can do.
Shop Around for Rates
By retirement age, you likely have a long, established relationship with your insurance company. Between the comfortability of this long-term relationship to work demands, you may have paid little attention to other options. Now is a good time to do so. Insurance companies routinely change their rates and discount options, so before you automatically renew, collect additional rates from other providers to see if you are getting the best option.
Adjust Commute Estimate
The common train of thought is that the more you drive, the greater your chance of being in an accident. As such, the higher the mileage you provide for your commute estimate, the costlier your policy rate. Now that you are retired, you will likely drive less, and consequently, reduce your accident risk. Ensure the insurance company knows that you are no longer making this commute so they can adjust your mileage, and possibly your rate.
Enroll in a Driving Course
As a person ages, sometimes, their risk rating will increase with car insurance companies. Although defensive driving courses are often targeted towards new drivers, if you take one of these courses in your senior years, it is equally helpful. Insurance companies care little about the age of the driver completing the courses, just that the drivers successfully complete them. If you complete a defensive driving course and provide the documentation to your insurance company, you will likely get a discount.
Consider a Deductible Increase
If you plan to reduce your driving considerably and you have a comfortable retirement income, you may want to consider increasing your deductible. Insurance deductibles commonly range from as little as $250 to $1000, but regardless of the amount you select, the higher the deductible, the lower your cost of insurance. If you have a healthy savings amount and would have no problem paying a little extra in the event you were involved in an incident, you can save yourself money by increasing this amount.
If you recently retired or plan to do so soon, make sure you speak with an auto insurance professional to learn about more ways you can lower your costs.