Congratulations, you’re retired! While the obvious benefits of retirement include a larger amount of free time, there are also a few downsides, such as adapting to living on a fixed income. One way to make the adjustment easier is to review your auto insurance coverage, not only to be certain that it still meets your needs, but also in order to save a little cash.
Saving Money on Car Insurance
Now that you’re no longer commuting to and from an office every day, your annual mileage is likely to be lower, so you might qualify for a low mileage discount from your car insurance company. If your spouse doesn’t work outside the home either, it might even be possible to cut down on the number of cars you own – though be aware that doing so will also negate any discount you have for multiple cars on the same policy.
If you do choose to sell off your second car, keep the one with the most safety features, best gas mileage, and lowest insurance premium. You can ask your insurance agent to help you determine the latter.
New and Different Discounts
As a “mature driver” you may qualify for an auto insurance discount just because of your age bracket and experience behind the wheel, especially if you have a clean driving record. You’re also never too old to take a defensive driving class, and earn the discount that comes with course completion.
Change Your Billing Habits
If you’re currently receiving your insurance statements via regular mail, you may be able to cut costs by going paperless. Many insurance companies offer a discount far greater than the price of a stamp for receiving emailed statements instead of physical ones. If you switch to paperless payments, using EFT (electronic funds transfer) directly from your checking or savings account each month instead of writing a check, you can usually reduce your premium a bit, as well. Since most insurance companies charge you for the privilege of making monthly payments, consider making quarterly or semi-annual payments instead, and eliminate the installment-plan fee.
Always Comparison Shop
All car insurance policies are not the same, and all companies don’t offer the same discounts, so be sure to shop around before you commit to a new insurance plan, even if you’ve been with the same insurer for decades. You may also want to look into the insurance discounts offered by such organizations as AARP and AAA. Both offer special pricing for senior citizens.
There are many things you should be spending your money on after retirement – travel, hobbies, your grandchildren – don’t let your savings slip through your fingers by spending more than you have to for auto insurance.
