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Are You Retiring – Check Your Car Insurance Options

By on June 22, 2011 in Auto Insurance, Insurance

Most of us spend our entire lives getting ready for retirement – saving money and dutifully watching our spending. But as the date for your planned retirement approaches, you have many different things to think about, from how you will fill those days when you are no longer bound by your job, to how you will pay the bills and meet your monthly expenses. With so much to think about, it is easy for things like your car insurance needs to get lost in the shuffle.

Even so, your car insurance is an important consideration as you get ready to make the transition from full-time work to full-time leisure. When you first took out your policy, the underwriters who set your rates based them on a number of factors, and one of those factors was what type of work you did. The insurance company may have considered additional factors, like how long you had been on the job and the number of miles you traveled on your daily commute.

When you retire, all of that will change, and chances are you will use your car and other vehicles in a whole new way. You will no longer have that daily commute, and that could cause the total number of miles you log in a year to fall dramatically.

On the other hand, you might find yourself traveling more now that you no longer have to get up for work each day. If your retirement plans include traveling the country in an RV or weekly trips to visit the kids and grandkids, you could actually see your travel needs, and your insurance needs, increase instead of decrease.

It is a good idea to speak to your car insurance representative or broker as soon as you know you will be retiring. The agent will need to make changes in your policy that indicate you are no longer using your car for commuting each day. This could result in a premium change, but hopefully it will mean that your premiums go down instead of up.

After you make that initial change it is a good idea to keep a mileage log in your vehicle to see how your newly retired lifestyle is really changing your driving habits. Knowing how many miles you drive in a typical month will help you estimate your yearly mileage and report that figure to the insurance company.

If you think that your current car insurance company is charging too much for coverage now that you are retired, you might want to shop around for a better deal. Every car insurer uses a different set of criteria to determine rates, and some companies are more friendly to retirees than others. Finding a company that values your years of experience behind the wheel can lower your insurance rates dramatically, and give you more money to enjoy yourself with.

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