Auto insurance carriers consider age when they review your application to underwrite a policy. The older you are, the more risk you might pose to the company. Consequently, you may find yourself paying more for your auto insurance coverage than you did prior to your retirement, or even last year. This isn’t necessarily fair. Just because you’re getting up there doesn’t mean you’re not a safe driver. As such, you must take extra steps to save on your policy. Here are five things you can do to cut your costs.
1. Remind Your Carrier You’ve Always Been an Astute Driver
According to Bankrate, your age isn’t necessarily a death sentence when it comes to your insurance. There are insurance carriers out there who realize that the more you drive the better you get at it. They also realize the more you age the more responsible you become. Some insurance companies offer discounts to their senior drivers rather than raising their rates. They believe a stellar driving record over the years says more about the driver than his or her age. Ask insurers if they offer discounts to seniors and retirees because of their driving experience and responsibility, you’ll be surprised how many do.
2. Do You Drive Less than You Used To?
Another way to receive a discount in your Golden Years is to point out that you drive less than you used to. Now that you’re retired and enjoying your rest and relaxation, chances are you log in less driving miles than you did when you were younger. Say so, because insurance companies consider you less of a risk if you are not on the road as much, and the Federal Highway Administration also confirms that older drivers operate vehicles less than younger drivers do. Compare insurance companies to find ones that offer low-mileage discounts on their policies to save extra money.
3. Let Your Carrier Assess How You Drive
If your insurance carrier doesn’t believe you’re a safe driver, tell it to put its money where its mouth is. According to Bankrate, you can ask an insurance carrier to, “place a diagnostic device in your car that transmits data on how you drive.” This will prove to the carrier that you are a safe driver who drives under the maximum mileage as required by your low-mileage policy. In fact, if you stay way below the mileage requirements and don’t drive at night or prove yourself safe in other ways, the company may reduce your policy premiums even further.
4. If You Haven’t Joined AARP Yet, You Should
The AARP is the most powerful lobbying group in Washington D.C., and it lobbies for the elderly. Many insurance companies offer discounts of up to 15 percent to AARP members depending on qualifying factors. For example, if you’re retired and also a veteran, you’ll see more savings on your automobile insurance policy than someone who has not served in the military. The AARP isn’t the only organization that entitles you to senior auto insurance discounts. You should also check with any retired employee organization that you’re a member of and your college alumni association among others.
5. Go Back to School
Finally, you’re never too old to go back to driver’s education and if you do, you might receive a defensive driving discount, per Bankrate. Enrolling in a driver’s education course helps you brush up on your skills, and if you’re an AARP member, you can take a discounted course. The reason why some insurance carriers offer discounted policy rates if you retake driver’s education is simple: You haven’t taken it since you were 15 years old. Yes, you’ve been driving a long time, which makes a difference according to CarInsuranceCheap.net, but you’re never too old for continuing education.
These are five ways you can reduce your automobile insurance costs in your Golden Years, and since you are no longer working, you’ll want to stay within your budget as easily as possible. Don’t pay more for auto insurance than you have to just because you’re older. Take advantage of these five methods to reduce your rates and help you save money so you can enjoy your retirement. Use a comparison tool to get your best policy premiums, and then get out on the road and drive safely, just as you always have.