March 16, 2012

Finding An Auto Insurance Quote For A Retired Driver

Retired drivers often look for ways to cut the cost of their insurance premiums by changing car insurance deductible options and coverage limits, but these actions often have unintended consequences. Every retired driver should understand how his or her car insurance policy will change in the years after retirement, as this will make it easier to find an affordable auto insurance quote on a fixed income.

A common misconception is that retirement leads to inevitable car insurance premium increases. Retirement itself will not affect a driver's auto insurance rate either way, but age certainly changes premiums. Insurance company actuarial statistics indicate that the chances of an accident decrease throughout a driver's life up until age 65, at which point accident rates increase. As such, older drivers may see rising premiums. However, there are ways to avoid higher insurance rates. Retired drivers can often get discounts for taking occasional driving improvement courses, which also serve to keep them safe on the road. A retired driver may be able to raise his or her car insurance deductible in order to keep premiums low, particularly if the retired individual won't be spending much time on the road.

Retired drivers should also closely examine their insurance limits, as they might need more or less coverage after retirement. For instance, drivers who decide to take a road trip after retirement should at least temporarily raise their insurance limits and add coverage options such as 24/7 roadside assistance. Retirees who plan on spending most of their free time at home might lower their collision insurance coverage limits since the chances of an on-the-road accident will drop significantly. However, it's still important to stay protected. When possible, retired drivers in at-fault states should keep their liability coverage limits high. Retired drivers should also keep comprehensive car insurance coverage on expensive or newer vehicles, as comprehensive coverage protects a vehicle when it isn't in use. When making any coverage changes, retired drivers should be sure to understand what they will potentially pay in out-of-pocket costs if an accident occurs.

Regardless of a driver's age, it's always a good idea to check insurance quotes every few months to make sure that a driver's rates are below or in line with national averages. Insurance rates might fluctuate within the first few months of a driver's retirement, so it pays to check quotes with an online auto insurance quote comparison tool every few months. Retired drivers should compare quotes when considering coverage changes or whenever rates change on their own. By keeping an eye on insurance rates, retired drivers can avoid unnecessary premium increases while keeping an ample amount of coverage.