Retirement usually brings with it more time to do the things you love but less money to use in these pleasurable pursuits. This is especially true for those who have been retired for several years because inflation begins to eat away at their retirement earnings. This is the time to examine all expenditures to see if there are ways to save a few dollars on even necessary spending.
Saving a few extra dollars on groceries each week or on the monthly electric bill can help to stretch a tight budget. Another bill that seniors need to examine is their automobile insurance premiums. Many can find discounts and make small changes in the policy that will lower these bills significantly.
The following are just a few suggestions that might help seniors get the best price on their car insurance:
• Inform the insurance agent about any change in the average distances that you now travel. If retirement has drastically changed the number of miles that you now drive each day, this can make a difference in the price you will be charged for insurance. It may be that you can now qualify for what insurance agents label “pleasurable use” rates.
• Take as high of a risk on the deductible as you feel your savings can stand. Although it is not wise to decimate a nest egg in this manner, taking some of the risk of having an accident with a higher deductible can certainly lower insurance premiums.
• Take a defensive driver course either from a local company or online with AARP. It is wise to check with your insurance company about the discounts offered for such classes first, however, because these vary from state to state.
• Make a wise choice about the type of car you drive. Insurance premiums are lower for cars or trucks with a higher safety rating. While you might feel younger in a sportier model car with a powerful engine, your insurance rates will certainly be lower if you choose a car or truck that has a record of performing well in crashes and one that is not normally targeted by thieves.
• Do an insurance review with your agent to make sure that all applicable discounts are being applied to your insurance policy, especially discounts that may be offered because of participation in certain groups or programs. If your rates seem to be higher than those of your friends, you might want to ask about the reasons for this. If you are unsatisfied with your current agent’s answers, it may be time to compare rates using the tools provided by online companies.
Seniors with good safety records should have some of the best insurance rates available, and many save a small percentage on their bill by bundling automobile insurance with other insurance policies at the same company. Still, they must be vigilant about reporting any changes to their agent so that their automobile insurance premiums can be adjusted appropriately and remain as low as possible.
Guest author Charlotte Fletcher writes for Monkey Insurance and believes it is worth retired people taking some time to shop around to make sure they are getting the best deal on their auto insurance.