By the time you reach retirement age, you may have long since gotten used to skimming annual insurance policy renewal notices or ignoring them completely. But when you have car insurance over 60, several life changes could impact your auto coverage quotes.
Here’s a rundown of factors that your provider may look at, and some changes you can make to potentially save money.
Aging worked in your favor through middle age, in terms of auto insurance rates, because accident rates drop when people reach their 40s and then stay relatively low for a couple of decades, according to an Insurance Institute for Highway Safety analysis. But then that changes.
You’re a little more likely than the average driver to get into an accident once you pass age 70, 1.5 times more likely after 75, more than twice as likely after 80 and nearly five times as likely after 85, the IIHS reports.
The good news is that some insurers offer discounts to older drivers. Allstate, for instance, has discounts of up to 10% for drivers who are at least 55 years old and retired. Liberty Mutual offers a discount for newly retired people. Older drivers also may be able to get a discount if they take a driver safety course.
Other drivers on your policy
With more people having children in their 40s or even 50s, kids are staying on family policies into their parents’ 60s and 70s. If your children are finally out of the house and off of your policy, that could mean big savings.
On the other hand, if you’re part of a couple with one member who is significantly older, you might be able to save by having the younger one do all of the driving and excluding the older one. Some states and companies may not allow you to do this, while others may require the older driver to give up his or her license, according to insurer Esurance.
Miles you drive
Once you retire, you may be driving less because you’ve eliminated the daily commute, or more, because you embark on your long-planned road trips. This will affect your auto insurance quote.
If you don’t drive much, don’t usually drive late at night or very early in the morning, and you avoid actions like hard braking, you might benefit from usage-based insurance, which provides discounts based on your actual driving behavior.
What you drive
Now that the kids are gone and the mortgage is paid off, you may be thinking of indulging in the sports car of your dreams. Just keep in mind that expensive sports cars cost the most to insure. If you bought a sports car during your mid-life crisis, maybe it’s time to go back to a sedan or mid-size SUV.
How much coverage you have
If you have an older car, you can reduce your rates by eliminating comprehensive and collision coverage, which would only pay out up to the value of your vehicle if it were totaled, minus your deductible. If you want to keep collision and comprehensive coverage, you could raise your deductible to save money.
If you decide to make policy changes, it’s also a good time to get several auto insurance quotes. The insurance company that offered the top deal before might not be your best option now.
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