Ready To Retire? How To Save On Age-Related Auto Insurance Premium Increases

Posted on: 4 June 2015

Car insurance rates are one of the hardest things to predict, particularly as you age. Whether you're getting closer to retirement or you've already gotten there, you're probably going to see an increase in your insurance premium rates. Most insurance companies consider older drivers to be higher risk because of the gradual decline in cognitive responses as you get older. If you're facing increased premiums, here are some suggestions to help you save money in the long run.

Consider Safety Courses

Sometimes, you can get a discount on your premiums simply by showing your insurance company that you are serious about being safe. Taking a driver's safety course is the best way to do this. In most situations, these courses will address things like the expected traffic rules, safe driving techniques and even the way to maximize technology for your safety.

If you show your certificate of completion to the insurance company, you may be able to get a discount on your premiums. In most cases, these are short-term discounts, lasting only a couple of years. Then, you'll have to take the class again to extend your savings.

Update Your Policy

One of the things about retirement is that you no longer have to commute to work each day. That will reduce your daily mileage. Since a portion of your auto insurance is based on the number of miles you spend on the road, reducing your driving time can potentially reduce your premiums. Make sure that your agent knows that you've retired and ask to have your car changed to a pleasure vehicle instead of a primary commuting vehicle.

Consider Performance Policies

One of the most recent changes to insurance premium rating is the use of a performance monitoring system that actually records your driving habits and transmits them to the insurance company. If you are a safe driver, it may be in your best interest to ask your agent if the company you're insured with offers performance rating.

If so, you can plug a small device into your car's computer port to monitor your driving on a regular basis. The device will track your mileage, your average speeds, any sudden use of the brakes and other statistics from the car's computer. Based on the way you handle your car on the road, your premiums can be adjusted.

With so many options for reducing your premiums, there's a good chance that you can lessen the sticker shock of any age-related increases from your insurance company. Talk to your insurance agent, like those at Hug Jeff Insurance, to find out for sure what benefits you can ge.

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