As you get older, your driving habits and capabilities as a driver are going to change. Primarily, if you are retired, you might no longer need to commute every day, and your use of your vehicle will drop. Plus, you might no longer feel the need to buy a high-end or technologically advanced vehicle. A simple but reliable model might now do the trick.
When age causes your driving habits to change, it might be time to review your auto insurance plan. Your policy should always match your specific needs and risk profile as a driver, which is why as those factors change, it might be time to update your coverage. Take the time to make sure your policy still matches how you use your vehicle.
What Risks Do You Face As an Older Driver?
Keeping yourself fully insured as you age means thinking about how your risks align with those faced by drivers who are the same age as you. Consider these factors when thinking about how your driving habits are changing:
Are you driving less? If you are driving less than you did a few years ago, your policy could be providing too much coverage. For seniors who drive very little, a low mileage discount may be available to reduce your costs.
When was the last moving violation you’ve had? If you have not had a speeding ticket or other moving violation in some time, this means you are a safe driver in the eyes of your insurer. Contact your auto insurance team to find out if you qualify for a lower premium as a result of being accident-free.
What type of vehicle are you currently driving? Those who are driving a paid-off, older vehicle, may not need as much insurance coverage as those making monthly payments on a newer one. Often, you will be required to buy certain coverage on a financed vehicle in addition to any coverage required by your state of residence.
Plus, it is still important to consider any other big changes you are planning to make in your life. For example, perhaps you plan to downsize and move to a smaller home. At this time, you will need to update your auto policy to ensure that it reflects your current location, since risk factors (and your premiums) can vary as a result of relocating.
Additionally, don’t forget that as you age, your risks of having an accident might go up. As a result, it might be a very good idea to carry a substantial amount of coverage so that you will have substantial coverage available in case you ever do have a wreck.
When you work closely with your auto insurance agent, you can create a policy that better fits your needs. Many times, seniors qualify for insurance plans with lower premiums and better discounts. So, updating your policies could save you money.