Retirement has its benefits and it’s not only getting to trade the brief case for the golf clubs or the long commute for walks on the beach. It also means you can save on your insurance needs. Whether you are shopping for new car insurance, want to renew you home owner’s coverage or are thinking about rental insurance, there are lots of ways to save—all because of your age.
As people get into their senior years, often they engage in less risky behavior whether that means not speeding or staying home more often. Those behaviors mean there will be less claims in the eyes of insurance underwriters, and as a result they are willing to reward you for it.
Age Saves You Money with Car Insurance
Take car insurance for starters. From a statistical perspective, middle-aged drivers and those approaching retirement are considered the safest drivers on the road. After all they have been driving on parkways, highways and streets for years and have more experience reacting to dangers on the road. Icy roadways or slick streets aren’t going to mean a fender bender for many older drivers.
As the years go by in retirement, many people scale back their driving habits, putting them in even less risk of getting into an automobile accident. Not to mention that older drivers usually have good-to-great credit scores, which matters to insurance companies. People with bad credit are going to have to pay higher premiums then those with a good credit rating. As a result of all of that, as well as a desire for car insurance companies to bring on new customers, discounts abound.
So what kind of discounts can retirees get on their auto insurance? For starters, there’s the automatic discount for turning age 55. The amount you will save is going to vary from one carrier to another, but it could be as much as 5% on average. If you are a member of AARP, that may also yield you a break.
The Less You Drive the More You Save
Outside of the straight forward discount for reaching 55, retirees can get breaks on driving less and reducing mileage, dropping their adult children from their coverage and bundling other coverage with the auto insurance provider if they own a boat, home or other insurable asset.
In addition to the general mature driver discount, retirees may be able lower their insurance premiums by taking a mature driver training course and get breaks if they are retired military.
When it comes to these discounts, retirees have to make sure to ask for them. If you have a current policy and want to save money, ask if your insurer will give you money off for your age, the amount you drive and if you are a member of an organization like AARP. If they don’t or won’t, it is time to shop around. In fact it’s a good idea to shop your auto insurance each year. Don’t assume that once you hit 55 the discount is going to kick in. You have to be proactive and alert your insurance provider.