Being retired can come with a whole host of benefits, such as relaxing on the beach, traveling the world, or playing an extra round of golf each day. It can also come with a variety of different monetary discounts - starting with your auto insurance premium.
If you're recently retired - or you will soon be - then you could save money on what you're paying for car insurance. This is due in large part to the changes in your lifestyle that will typically take place once you've stopped working for your employer.
How the Newly Retired Discount on Auto Insurance Works
Oftentimes, when an individual retires from their employer, the amount of driving that they do on a regular basis will change substantially - and because of this, so will their auto insurance premium rates.
When you contact your auto insurance company regarding the newly retired auto insurance discount, you will likely be asked three key questions in order to determine what - if any - type of discount you will receive.
First, the insurer will need to know how much, if any, the amount of your annual mileage has changed. For example, if you are no longer commuting to and from your employer's place of business, then it could be that the amount of your annual mileage will have dropped - in some cases - dramatically. If so, you may be eligible for the low mileage discount as well. This is because lower mileage typically equates to lower risk to the insurance company - and lower risk equals lower premium cost to you.
The insurance company will also want to know if you are willing to take a mature driver class. These courses are generally for drivers who are age 55 and over, and they emphasize information such as vision changes, hearing loss, reaction changes, and other items that older drivers may encounter.
These courses usually only cost about $20 or $25, but for those who take and successfully pass, there could be a significant decrease in their annual auto insurance premium rate - so it may be well worth the time and the cost of taking the course.
If you're married and you own more than one vehicle with your spouse, your insurance company may also inquire as to whether or not you will be keeping all of your current vehicles once you retire. Once you have retired, it may make sense to do away with all but one vehicle. This is especially the case if you do most of your traveling together.
When inquiring about the newly retired discount for your auto insurance, be sure to ask about any other discount that you may also be entitled to. If more than one discount is applied to your coverage, it could add up to a substantial amount of savings - and ultimately more money in your pocket.
Photo credits (top image): GotCredit, American Advisors Group (2)