A common misconception with auto insurance rates is that the price varies significantly among teen, adult and senior demographic groups. While this may be true for the younger kids who are more prone to accidents, drinking and driving, driving in late hours and texting and driving, prices for senior citizens do not skyrocket in the same manner. Senior citizens or people 50 and older actually pay less than the average driver. But even with this fact, it doesn’t mean that you shouldn’t find ways to save on car insurance.
Regardless of how much you pay, auto insurance is an expensive investment but is also one you don’t want to be cheap about. Even though price is a priority for most drivers, it shouldn’t be the decision making factor. In fact, cheaper auto insurance actually costs you more in the long run. While you may be saving a couple of hundreds every few months, the cost does not even come close to what you may have to spend on liability and damage repairs.
So how can retirees save money on their auto insurance? The good thing is that there are actually many simple ways to save, and save a lot! Although each insurance company is different, most policies offer enough benefits for you to save a significant amount. The most important thing is to talk to your insurance agency once you retire.
Lower Mileage & Safe Driving
Since you will be no longer working, you will most likely not be commuting as much. Lower annual mileage can save you a good chunk out of your car insurance policy. Along with this, you can also install a driver monitoring system which tracks the way you operate your vehicle. If you can demonstrate that you are a safe driver by going at appropriate speeds, not using a lot of miles and not driving during late hours then the more you can receive cheaper rates on your insurance policy. If you feel like you’ve been a good driver all your life, it’s a great way of being rewarded for it. Since these telematics devices are catching on, it can also mean that bad drivers will have to pay more for insurance if the gadget is installed in their car. This is a great way to ensure safety or abate reckless behavior on the road for all drivers.
Ditch the Collision Policy
Another way to save for retirees is by cutting certain costs on your insurance policy. If you drive an older car, there may not be a need for comprehensive coverage. The same is true for your collision repair. If you have an old car that will cost more to repair than to actually buy or lease a new one, then ditch the collision policy.
If you want to save a few bucks, take the mature-driver course. Similar to drivers education, the mature-driver course is for people who are 55 years and older. Instead of being tested on the basics, the test evaluates how well the older person can drive despite the common issues such as loss of hearing, sight and overall motion.
If you or your partner is retiring, look at your auto insurance policy and speak with your provider. You may come to a pleasant surprise of how much you can be saving! There are many discounts available, all it takes is a little research.
Stephanie Wilmsmeyer is a life insurance agent for State Farm in Columbia, Mo.