As you get older there are a few things you need to adjust. Life can be quieter after children leave home and you need to find other activities to fill the busy schedule you once had. You are probably retired and have more time in hand. Now could be a good time to work on those hobbies you always wanted to engage with more.
Motorists are advised and in some cases required to re-arrange automobile insurance coverage as their lives changes. These changes may be work, address, mileage or physical condition related. Older drivers go through changes in life as well and these bring several questions relating to auto insurance. Here are some of them.
1. Are You Retired and Don’t Need to Commute Anymore?
Retirement can mean that you are not using your automobile as much anymore. Average motorists drive about 12,000 miles a year and large part of it for commuting to work. Retired people would probably drive around 7,000 miles a year and this qualifies them for low mileage car insurance discounts with many insurers.
It is worth looking at your driving and discussing this with your insurer. Also, this is a good time to look around and see this change will warrant change of insurer. While some companies offer discounts for over 50s others increase rates for over 70s. And discounts offered for low mileage are considerably different.
2. Are You Moving or Moved Already?
When we are working we want to be near work and in most cases this is large cities or industrial areas where auto insurance rates are high. When people retire and children move away they may want to sell their city apartment and move to a quieter, nicer and maybe sunnier areas. Even you don’t live out of the city you can still save considerably by changing the borough.
If there is a change in your living arrangements and address it is a good time to look at your policies. Again, the way companies rates various groups of motorists change and you would be looking for the best deal for your new environment.
3. Has Your Family Structure Changed?
At certain age, children come into picture or get out of it. They could be coming into driving age and want to be insured under parents’ policy. This would increase the costs as young drivers are considered high risk. It could be that those days are over and you cannot wait to take them off your policy. This would give you quite a bit of premium relief.
Divorce or death of spouse could be another reason to look at current coverage. The outcome could be mixed in these cases. People may think that they are now alone they should pay less. However, your spouse’s good driving record or the fact that you were married could have been keeping the premiums low and now that you are single again the rates may go up. But then, it may be time to get rid of the second car. Anyhow, such changes should trigger a vehicle insurance readjustment.
4. Are You Still Keeping Your Old Automobile or Bought a Safer Car?
After a while it may not be worth keeping collision coverage for your old automobile. The costs can outweigh the benefits. If your car is worth about $5,000 and ten years old you may have different plans. If it suffers you may not want it to be repaired anymore. Keeping the money that would have been paid to insurance company would give you freedom to make such decisions.
However, you may still want to keep Comprehensive coverage since it covers fire, theft and weather related damages that could cause a total loss for you. This may trigger a search for a new auto insurer since not many companies would separate Collision and Comprehensive Coverage. It is always a good idea to have a look at your policies every so often and make the necessary changes.
5. Changes in Your Credit Score
Many people plan ahead for their retirement and re-arrange spending. They may be able to manage their finances better at retirement since they have less unexpected issues like paying for a new computer for children and school trip. Also, their mortgage may be down considerably and they have more equity in the house that increases their credibility with banks and credit card companies.
You can take advantage of improvements in your credit score by choosing a car insurance company that gives the largest discount to motorists with excellent credit rating. You can plan ahead to reduce the impacts of a fall in your credit score as well if you know what is coming. Companies many not look the credit ratings of their well-established customers often unless there are changes in the circumstances like claims, address or vehicle changes. Even if they do, you will need to be looking for companies that care less about credit score this time.
Money can be tight and important after certain age. You don’t have much prospect to get raise on your salary and you have to manage with fixed income from now. Planning ahead, looking at your options and shopping around can leave more of that money in your pocket. Getting cheap auto insurance will help you save more money. And you can use that money for enjoying your life more because you deserve it.