If you are retired or close to retirement, you understand the importance of every dollar, especially when it comes to fixed expenses like car insurance. The good news is that your years of driving experience can work in your favor. Mature drivers often qualify for lower car insurance premiums and special discounts that can save you hundreds of dollars each year. Here are nine effective strategies to maximize your car insurance savings now and in the future.
1. Compare quotes from different insurers every 6 to 12 months. Rates vary widely among auto insurance companies, so shopping around could save you anywhere from $350 to over $3,000 annually. Look for new policies after renewing your current one, buying a new vehicle, moving to a new location, removing a driver from your policy, or experiencing major life changes.
2. Take a defensive driving course to refresh your safety skills and earn discounts of 5% to 15% on your insurance policy. Verify the requirements with your insurer, complete an approved course, and submit your certificate for the discount.
3. Consider enrolling in a pay-per-mile program if you drive infrequently. These programs offer savings for low-mileage drivers, typically under 8,000 to 10,000 miles per year. Explore pay-per-mile options in addition to low-mileage discounts.
4. Explore usage-based insurance programs, which track your driving behaviors and offer potential savings of 10% to 40%. These programs may not be suitable for everyone, as tracking devices can misinterpret defensive driving techniques and raise privacy concerns.
Car insurance premiums can be reduced by adopting certain strategies. Firstly, consider installing telematics systems in your vehicle to gather data on your driving habits, potentially leading to discounts. Another method is to bundle your auto insurance with other policies, such as homeowners or renters insurance, to secure a 5% to 25% discount. Additionally, avoid filing unnecessary claims for minor damages under $1,000 to $2,000, as this could result in higher premiums in the long run. Insurance claims stay on record for three to five years, potentially impacting future discounts. Explore various discounts offered by insurers, such as pay-in-full, low-mileage, paperless billing, good student, military or occupational, and anti-theft feature discounts. These discounts can help reduce overall insurance costs.
Consider reaching out to your car insurance provider or agent to inquire about potential discounts you may qualify for but aren’t aware of yet. Maintaining a healthy credit score can lead to significant savings on car insurance premiums, as having poor credit may result in paying substantially more each year. Keeping a clean driving record, free of violations and accidents, is crucial for securing lower insurance rates. It’s also important to note that insurance companies cannot deny coverage based solely on age, as protected by the Age Discrimination Act. However, factors such as medical conditions and driving history may affect insurance premiums. Stay informed about your options by contacting your local Department of Motor Vehicles for your driving record and relevant information on age-related requirements or tests.
Explore various programs and general services offered by the DMV. Discover more articles from our budgeting and saving series, including tips on getting the best discounts for ages 50+, saving money on prescriptions, and utilizing budgeting apps for December 2024. Learn about prioritizing debts, mature drivers’ insurance coverage, and transferring auto insurance policies when moving to a new state. Find answers to common questions about auto insurance quotes, policies, and rates, as well as information on covering guests or temporary drivers under your policy. Understand factors influencing car insurance rates, such as age and AARP membership, and determine when insurance may no longer be cost-effective for older vehicles. Access valuable resources and insights to help you navigate personal finance decisions effectively.
Heir Needs
Edited by Kelly Suzan Waggoner
Inheritance can be a double-edged sword for heirs. On one hand, it can provide financial security and open up opportunities for a brighter future. On the other hand, it can come with its own set of challenges and responsibilities that can be overwhelming for some.
For many heirs, receiving an inheritance can seem like a windfall. Suddenly coming into a substantial amount of money or property can be both exciting and intimidating. It’s important for heirs to carefully consider how they want to manage their inheritance to ensure that it is used wisely and effectively.
One of the first steps for heirs is to develop a financial plan. This plan should take into account their current financial situation, their long-term goals, and any obligations or debts they may have. By creating a roadmap for how they will use their inheritance, heirs can make informed decisions that will benefit them in the long run.
In addition to financial planning, heirs should also consider seeking professional advice. Financial advisors, estate planners, and tax professionals can provide valuable guidance on how to best manage and protect their inheritance. These experts can help heirs navigate the complex financial and legal aspects of inheritance, ensuring that they make sound decisions that align with their goals.
It’s also important for heirs to think about their own values and priorities when it comes to their inheritance. Some may choose to invest their inheritance to secure their financial future, while others may prefer to use it to support causes or organizations that are important to them. By understanding their own values and goals, heirs can make choices that align with their personal beliefs and aspirations.
In some cases, heirs may also need to consider the emotional impact of receiving an inheritance. This sudden change in financial status can bring up feelings of guilt, obligation, or even resentment from others. It’s important for heirs to process these emotions and seek support if needed to navigate this new chapter in their lives.
Ultimately, managing an inheritance is a significant responsibility that requires careful planning and consideration. By taking the time to develop a financial plan, seek professional advice, and align their choices with their values, heirs can make the most of their inheritance and create a secure future for themselves and their loved ones.
Kelly Suzan Waggoner is a financial advisor specializing in estate planning and inheritance management. She has helped numerous heirs navigate the complexities of receiving and managing inheritances, ensuring that they make informed decisions that support their long-term financial goals.
