5 Ways Retirees Can Save on Auto Insurance

When a person retires, he or she will likely experience a decline in income. Though living expenses are generally lower in retirement than when a person is working, it is still important for a retiree to be as frugal as possible in order to have money to spend on enjoying life. One way that a retiree can reduce spending is by lowering the cost of his or her auto insurance. Fortunately, there are a number of different ways that a retiree can lower the costs of his or her auto insurance coverage.

Age-Based Discounts

Older drivers are some of the safest on the road. Statistically, older drivers get into fewer accidents and the accidents typically result in less damage. This means that car insurance companies will offer lower insurance rates to older drivers than younger ones. A person who is in his or her retirement years should seek out insurance policies that offer discounts for senior drivers. To find the best rate, a person should shop for policies among a number of different companies.

Mileage Changes 

Many insurance companies use the number of miles that a person drives in a year to determine insurance rates. When a person retires, he or she will no longer be commuting to work on a daily basis and will likely drive fewer miles each year. For this reason, a person who is retired should contact his or her insurance company and provide them with an estimate of the number of miles that he or she will drive per year to see if the company will offer a lower rate. A consumer should also use this new factor to shop around with other insurance companies to find the best deal.

Driving Courses 

Many areas offer safe driver courses specifically for older drivers. These courses help drivers use their years of experience on the road to compensate for the most common issues of growing older, such as hearing loss and peripheral vision. Most insurance companies provide discounted rates to older drivers who complete one of these courses. To find a course in a specific area, a person should contact their local driver's licensing office or police department. In addition to local classes, many organizations offer online courses that will also qualify a driver for a discounted insurance rate.

Other Discounts 

Insurance companies may offer a discount to policyholders who have been with the company for many years, but a person may have to ask for the discount to obtain it. By paying insurance premiums annually or semi-annually, a person will often qualify for a discount compared to paying premiums every month. Discounts may also be available for paying via direct withdrawal instead of using a paper check. Many insurance companies provide discounts to members of various organizations, including senior citizen's groups.

By spending some time checking for discounts and comparing rates from different companies, a retired person will likely be able to save some money on his or her car insurance premiums. In many cases, the savings may be significant. Whether a retiree finds savings that are large or small, the difference will be worth the small amount of time that it will take shopping for the best deal.