Posted : 06/26/2009
During retirement, many things change. More free time may be the most obvious change, but there are also other lifestyle adjustments, including the switch to a fixed income. Retirement is a good time to review insurance needs and make sure that your current coverage is still appropriate for your new lifestyle.
If you no longer commute to and from work each day, that may drastically reduce your annual mileage. Check with your company to see if you qualify for a low mileage discount, once you've started a new routine. Another consideration is the number of cars necessary for the household. If previously each spouse needed a car to get to work, upon retirement it may be possible to get rid of one of those cars which would not only reduce the insurance required but also provide at least a small amount of cash upon sale. If selling a car, it is worth looking at the features of all available cars before deciding which one to sell. Some car insurance companies offer discounts for safety features such as multiple air bags or anti-theft devices. Retain the vehicle which offers the best combination of safety features, gas mileage, and policy discounts.
Many states also require insurance companies to offer discounts for drivers who complete a Defensive Driving course. It's never too late to learn good strategies for safe driving - and often the insurance discount will more than pay for the cost of the course over two to three years. Taking a course like this by no means indicates that you're a bad driver - it's just an easy way of saving more money!
If you pay your insurance premiums by writing a monthly or quarterly check, your insurance company probably charges a small service fee or installment fee with each payment. But, if you choose to have your payments deducted automatically from your checking or savings account using Electronic Funds Transfer (EFT), you will save the cost of the payment processing fee. If your fee is $3.00 per payment, you'll save over $30 a year - and every dollar helps on a fixed income.
Companies offer many different auto insurance policies, and even if you've been with the same company for twenty years and are quite pleased with the services provided, it still is worth taking a look at what else is available when retirement arrives. While the basic services are generally the same, the prices can vary widely. Some companies offer special auto insurance discounts to seniors, and many also offer defensive driving and driver training classes that can reduce premiums.
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