As a blogger who focuses on investing in retirement, I’ve always got my eyes on ways to save money as we get older. One often overlooked topic is that of Auto Insurance for Seniors. Today I’m going to talk about that in great detail, hoping that some of the tidbits of information last many years and help a few of you save some serious cash as you retire.
Tips You Need to Know – Keeping Your Insurance Premium Low
It goes without saying that insurance premiums are based on many things. Being young and purchasing new car insurance rates or a new policy, the prices can be a bit terrifying. Although, many people over look that senior drivers are almost always blind sided with an increase in their insurance policy. Without proper understanding of what factors affect the insurance premiums of most senior folks it can be costly. So we have compiled a list of three things you should know as a senior driver.
What car do you drive?
As a senior your priority isn’t the car you drive. In most cases, many senior drivers decide to keep their car for as long as they can, spending money on a new vehicle isn’t the smartest idea. Spending on your leisure time and grandkids keeps you happy. Although with many insurance companies out there, depending on how new your vehicle is can be a strong factor towards the calculation of your insurance premium.
Since seniors prefer to keep their cars that are relatively old, when compared to the most modern car out on the market they do not have the most up to date security features. Most insurance companies today actually reduce your insurance premiums if you have a modern vehicle with the newest safety features on the market.
Who is on your insurance policy?
Most of the times seniors are almost always willing to let family drive their vehicles or even help them to get a lower insurance policy. These may seem to be quite an innocent act, it can be very costly to the senior driver. Without being properly educated on these two factors, you can be in for a huge dent in your bank account that you didn’t anticipate.
In many states, before you let another driver use your vehicle, every driver in that household must have car insurance. Sometime this doesn’t apply since it may be a grandchild or one of your children using your vehicle for temporary use. In the instance that they are driving your vehicle and they were in an accident your insurance premiums can change, and by that we mean substantially. That isn’t a reward someone should get if they are doing something genuine. One way that is recommended by almost all insurance policies, if you have someone who frequently uses your vehicle or even using it for a short amount of time, you should have them added to your insurance policy. The reason being, like stated above if they so get into an accident your insurance premium will go through the roof and we don’t want that. By having them on your insurance policy you will not only be covered during the time of the accident but also don’t have to worry about bank breaking insurance premiums.
In some light, letting your family use your home address as a way to get cheaper car insurance is a great way to save money but also seen by some as an unethical practice. There is a huge risk of liability that can cause any insurance claims made at the time of an accident to be denied and the policy holder to be in deep trouble with payments. Not only does this gesture seem unethical to many, but also can be categorized as insurance fraud. Which is never good. Avoid doing this at all costs.
Driving Habits and Daily Life
As a senior you have changes going on in your life that can be very beneficial to you. Keeping your auto insurance companies updated with your recent changes such as working from home or even being recently retired can be a great way to save money on your insurance premiums.
Letting your insurance company know that you do very limited driving each year can reduce your insurance premium by some. Less driving throughout the year means that you won’t be on the road so often to pose a risk of being in an accident. Many insurance companies have their own custom polices that determine your insurance premium based on your driving habits. Take a look at some of those options, usually senior drivers are more passive and in turn they are prime candidates for custom insurance policies offered by many auto insurance companies out there.
These are some quick tips you can do to save some money on your car insurance policies each month. For even more tips, check out the Insurance Hackers Website. It’s full of information and tips that will save you money on car insurance. Not only has that but to also save yourself from any liabilities that may come your way. It is always better.
About Tim Schmidt
Tim Schmidt is an Entrepreneur who has covered retirement investing since 2012. He started this website to share his expertise in using his Self-Directed IRA. Most recently he's been advising individuals to diversify into precious metals ahead of a certain recession. He invested with Goldco.