6 Ways to Save on Home and Auto Insurance in Retirement
Find Cheap Homeowners Insurance Quotes in Your Area
Take advantage of these programs and discounts to save on home and auto insurance in your retirement.
Top ways for retirees to save on home and auto insurance
1. Tell your homeowner's insurance company that you've retired
Many home insurance companies offer discounts to retirees. That's because after you retire, you'll spend more time at home compared to working-age adults.
Extra time in the house means a lower risk of unattended disasters and burglary.
Retirees who rent can take advantage of a similar set of discounts on their renters insurance.
Many lenders require you to buy home insurance as a condition of your mortgage. However, it's a good idea to keep your home insurance policy even if you own your home because a major disaster could eliminate your life's savings.
2. Ask your car insurance company for a low-mileage discount
Drivers in their 60s already pay cheaper auto insurance rates than other age groups. You can lower your monthly rate by telling your auto insurance company that you no longer drive to work.
How much you drive per year impacts your auto insurance rates. The fewer miles you drive, the less you'll pay for car insurance.
3. Take a defensive driving course
Most major insurance companies offer defensive driving courses designed specifically for older drivers.
The age limit to participate in these affordable courses depends on where you live. A typical 50-year-old can expect to save about 10% on their monthly rate.
4. Take advantage of app-based discounts
Many companies offer discounts if you download an apps or install a device that tracks your car's speed, braking and other driving behaviors, called telematics. This allows insurance companies to tailor discounts according to your driving habits.
Keep in mind that the insurance company will be able to track where you are when you enroll.
Some companies also offer discounts if you install a tracking system that can help you find your car if it gets stolen.
5. Consider higher deductibles
Before your insurance starts paying for repairs, you'll have to pay a set amount of money, called a deductible. You can raise or lower your deductible. Typically, the higher your deductible, the less you'll pay each month for insurance.
Keep in mind that you'll have to pay your entire deductible, often $500 or $1,000, before your coverage starts. Never choose a deductible that you can't afford to easily pay from your savings.
6. Compare quotes
One of the easiest ways to save on car insurance is to compare quotes from different companies.
Car insurance companies change their rates frequently. That means the company with the best deal last year might not have the cheapest quotes this year. It's important to shop around every time your policy comes up for renewal to make sure you're getting the best rate.
Companies can charge significantly different prices for the same level of coverage. For example, you'll pay more than twice as much for a Farmers policy as you would for the same coverage from State Farm.
Switching from Farmers to State Farm could save you $1,608 per year.
Frequently asked questions
How can I save on auto insurance in retirement?
The best way to save on car insurance in retirement is to take advantage of your company's discounts like defensive driving courses. It's also a good idea to compare quotes and tell your insurance company that you're no longer commuting.
What's the best way for retirees to save on homeowners insurance?
The best way for retirees to save on home insurance is to call your insurance company and ask if it has a retiree discount.
Should my car insurance go down when I retire?
Yes, but only if you contact your insurance company and tell them that you're no longer driving to work. You won't get an automatic discount just for retiring.
Sources and methodology
Insurance rate data came from Quadrant Information Services. ValuePenguin collected quotes from 37 leading insurance companies from 50 states and Washington D.C. All companies used in this analysis sell insurance in at least five states.
Rates are for a 30-year-old man with good credit, a clean driving record and a 2015 Honda Civic EX.
Rates are for a policy with the following coverage.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
- Personal injury protection: Minimum when required by state
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