Retirement brings a lot of changes. For example, much of the driving you currently do will no longer be necessary. You won?t need to commute to the office each day, resulting in a reduction in the number of miles you drive each year. It is also worth noting that insurance companies expect consumers over 65 years of age to make safer decisions on the road.
Because of these things, you can expect your insurance rates to drop following your retirement. But don?t assume they will do so on their own. Call your insurance company or broker, and ask them to review and update your policy. We?ll present several items to discuss with your insurer below. Each one will help lower your premiums in order that they better reflect your new circumstances and coverage needs.
Have Your Insurance Company Reevaluate Your Annual Mileage
Since you no longer need to commute to work each day, the average number of miles you drive each year will be lower ? perhaps, much lower. Depending on the distance between your home and office, you might drive half as many miles as you did while employed. This can have a significant impact on your rates.
Auto insurers calculate their policyholders? premiums based, in part, on how much they drive. The reason is because the insurer?s exposure to a risk of loss increases with the number of miles driven. Hence, because you?ll be driving fewer miles, your premiums will likely be adjusted downward.
Ask Your Insurer For A Retiree Discount
Most consumers are aware that car insurance companies offer numerous discounts. However, few people take advantage of every discount for which they are eligible. One in particular reduces the premiums of those who are 65 years of age or older.
Insurers realize that retirees drive fewer miles and tend to make safer decisions while driving their cars. The insurers? risk of loss is lower, which allows them to pass along the savings via a discount.
Some insurance companies will apply this discount automatically when you turn 65. Others wait until they are notified by their policyholders. Avoid assumptions. Call your insurer, and ask them to apply the discount.
Reassess Your Coverages After Downsizing
It?s common for retired consumers to downsize after they leave the workplace behind. For example, they might sell their large homes for smaller ones. Or, they may sell valuable assets for which they have little use or interest.
Your coverages are designed to provide you with financial protection. Whether you are injured in an accident caused by someone who lacks coverage, or you cause an accident that results in injuries and property damage, your assets are ?sheltered.? When you downsize, the total value of your assets declines. This means you need less coverage. If you are planning to downsize after your retirement, reevaluate your coverage needs, and update your insurance policy accordingly.
Enroll Into A Mature Drivers Training Course
Many older drivers confront challenges that may impair their ability to drive safely. For instance, they may react more slowly; their vision and hearing may fade; and their ability to look over their shoulders may dwindle.
Mature drivers training gives older drivers the skills they need to drive safely despite these challenges. The course teaches defensive driving strategies, methods for avoiding risky situations, and new regulations. Many insurers offer a discount to older policyholders who have successfully completed such a course.
Consider Selling One Of Your Cars
A lot of retirees and their spouses find that they need only one vehicle to accommodate their driving needs. Keeping a second car may be unnecessary. Selling it can dramatically lower your premiums, especially if you are carrying collision and comprehensive coverages on it.
After you retire, determine whether you need a second car. If not, sell it and update your insurance policy.
Shop Around For Lower Auto Insurance Rates
Your current insurer may have provided you with low rates while you were employed and needed certain coverages. But don?t assume they will offer the lowest rates after your retirement. Even if you have been with your insurer for decades, it is worthwhile to compare rates from other insurance companies. Shopping around is the only way to know whether a lower-priced package of coverages is available elsewhere.
Retirement is an exciting time to enjoy the activities you put on hold while you were employed. The suggestions above will help you to save money on your insurance premiums, giving you more financial flexibility to do so.
Petrusia Kowal spend the first half of her life as a music teacher, and is now working on the second half as an auto insurance agent. Are you looking for the cheapest car insurance Napanee? Take to the internet and compare auto insurance rates online!
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Source: http://carsandinsurance.info/insurance/how-to-lower-your-auto-insurance-rates-after-retirement
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