Most people see a significant change to their driving habits once they retire. Instead of driving to work everyday, they usually end up driving irregularly. Usually the driving involves a trip away or a trip to visit friends.
For most retirees, that means they drive less often than they used to. Why should they pay the same level of insurance as someone who is constantly on the road?
Here are some tips to help retirees save on their car insurance.
Look for Limited-Driving Discounts
Many companies offer discounts that specifically target older drivers. The fact that your driving is less frequent than a younger person should immediately obtain a significant discount. Make sure that your insurance provider is giving you this discount and if not, call them about it. Inform them of your retiree status and tell them about your driving habits. If they don’t provide a discount, change providers.
If you have an older car you might consider completely removing your collision coverage. When you are driving less, you might be perfectly happy with your old car that is not worth much money. If it is only worth a few thousand dollars, there isn’t much point insuring it.
Increase Your Collision Deductible
By increasing your deductible you can save hundreds of dollars. You won’t be driving much and most older drivers take a great deal of care on the road. It is unlikely you will be involved in a crash so increase the deductible.
Install a Telematics Device
A telematics device keeps track of how often you drive your car, how far you drive and how fast you go. It allows insurance companies to offer better value on your insurance policy based on your driving habits. This can be a big saving for people who don’t drive very often.
Keep the Kids off Your Policy!
Young people who don’t have a proven driving record can be extremely expensive to insure. Keep your grandchildren off you policy!
Use Your Good Track Record to Negotiate
If you have decades of unblemished driving, make sure you impress your insurance company with it, then ask for another discount. If they will not reward you for that sterling driving record, find a company that will.
You probably have years of car insurance through the same company. Ask for a loyalty discount, even it’s not mentioned in their brochures. Insurance companies like to hang onto customers who have good driving records and who have been with the company for many years.
Take a Driving Safety Course
This tip applies to anyone who wants to obtain cheaper insurance premiums. Many insurers will offer you a discount if you have successfully completed a driver’s safety course.
Buy a Car That is Cheap to Insure
It might be nice having a fast sports car to show off to your friends. But when you retire you won’t be speeding around like a hoon anymore. Sports cars with large engines can be more expensive to insure. Consider buying another car that focuses on safety features instead of speed.
Keep Your Car in Great Condition
Even you have an older car, make sure it is well maintained. Some insurance policies have clauses that limit coverage if your car causes an accident, due to mechanical failure. Read the fine print and make sure your car is in great shape.