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Auto insurance options when retiring

If you are retiring and not independently wealthy, you are most likely a senior (over 55+). Several things change when you no longer "work." Your commute should disappear. You may move closer to children or grandchildren, affecting your rate. Your driving habits may change as you take longer trips and run more shorter errands with offspring.

 

Reduced miles means reduced premiums

Since you no longer need to drive to and from work each day, your annual mileage will more than likely drop, which can mean a nice rate decrease for you! But you have to contact your insurer, and tell them about your new mileage use. However, if they are a company that verifies mileage, they will want to know your odometer reading, or they might send you a form for your to complete. Trust but verify!

 

 

Pay-by-the-mile auto insurance a savings for retirees?

In 2008, MileMeter (available only in Texas) began offering six-month policies with chunks of insured miles ranging from 1,000 to 6,000 miles. When the "tank" runs dry, motorists buy more. Since retirees drive less, they would owe less.

 

Under Proposition 103, approved by voters two decades ago, California insurance premiums already are based partly on miles driven, but insurers say they have lacked authority to adequately verify motorists' estimates, thus resulting in an honor system that often is abused.

 

Down sizing your fleet

You may also discover that you no longer need multiple cars and that one car is enough. Down sizing to one car you will save on gas and reduce your auto insurance rate. As long as you don't add grandkids to your policy!

 

Senior drivers courses

Another way veteran drivers can save on auto insurance is by participating in AARP`s Mature Driving Course or AAA`s Mature Operator Program. Many insurance companies provide discounts to seasoned drivers who participate in these refresher courses. So it might be worth a try!

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