How to save $$ on Auto Insurance after RE

[dessert]

I retired last April and just recently contacted my Auto Insurance Agent to inquire about a status change. I let her know that I had retired and asked about reduced rates on coverage.
She called today and let me know that I would be paying considerably less since I was retired. (don't remind me that I should have called in April)

Maybe everyone on the forum already knows about this but just in case you don't then I'm trying to let you know to give it a try. You just might get good news like I did.

Good luck. Now go make that call.

 

[Lakedog]

Some companies give a discount for being retired but also have an age requirement. I retired at 51 but Allstate would not give the discount until I turned 55. They applied the discount (10%) to my home insurance policy as well.

 

[dessert]

They applied the discount (10%) to my home insurance policy as well.

Wow, home owners policy too huh? I'll have to look into that. Maybe I'll get good news twice. I guess when you're retired, you are home more so your home is safer??
I don't know about that though, because now that you're retired, you might be gone more.

 

[Lakedog]

Wow, home owners policy too huh? I'll have to look into that. Maybe I'll get good news twice. I guess when you're retired, you are home more so your home is safer??

Yes, that seemed to be their reasoning -- that someone was home more often. Hope you have success with your home owners discount.

 

[Alan]

I moved out of State the day after I ER'ed so I informed the insurance company immediately. I did get a significant reduction for no longer using the car to drive to work and the expected annual mileage dropped from 15,000 m per year to 5,000.

I can't remember the % drop as I also moved from a high cost city and State to a much lower cost State and city.

 

[meierlde]

Yes dropping the to school or work clause of auto insurance does reduce the premium significantly. The logic is that you will not be involved in rush hour traffic (at least in the am). First moving out of the big city cut the rates by 40% and another 25% by dropping the to work or school item, making it pleasure driving only. Also if retired consider if you need PIP or can go with medical payments only, as PIP includes disability which if retired you don't really need (nor could you get it)(This is a Tx policy so states differ on this)

 

[Walt34]

It appears that it is not always the case that rates go down upon retiring.

A surprise came when I went back to work and the rate went down slightly. It may be that since the commute is a short 3.4 miles they figure I'm not out wandering around with the risk of converting sit-down restaurants into drive-throughs and their risk is lower if the vehicle is safely parked at work.

Then again, I'm not commuting through Manhattan or Washington, DC either.

 

[KiraC]

Thanks for the tip. Will make phone call this afternoon.

 

[dessert]

I moved out of State the day after I ER'ed so I informed the insurance company immediately.

I can't remember the % drop as I also moved from a high cost city and State to a much lower cost State and city.

You're much smarter than I....

I'm in that State and area that you left. I think we have the third highest rates in the U.S.

 

[dessert]

Thanks for the tip. Will make phone call this afternoon.

Let us know if you had success. We like good news.

 

[dessert]

The logic is that you will not be involved in rush hour traffic (at least in the am). cut the rates by 40% and another 25% by dropping the to work or school item, making it pleasure driving only.

Yep, that's how the discussion went and the reason for the discounts.
My DW said "I wonder what else we don't know that we don't know".

 

[travelover]

I re-shop my auto and home insurance at least every couple of years. I've seen very little change in the rate since I retired - at any of the companies I've dealt with. Maybe 'cause I'm under 60?

 

[dessert]

I re-shop my auto and home insurance at least every couple of years. I've seen very little change in the rate since I retired - at any of the companies I've dealt with. Maybe 'cause I'm under 60?

I don't know if that's the case or not. You could be right.
I'm 61 so I'm over that hurdle.

 

[Chuckanut]

Don't many insurance companies charge extra if one drives the car to and from work? Well, upon retirement, one doesn't work, so....

 

[Alan]

I re-shop my auto and home insurance at least every couple of years. I've seen very little change in the rate since I retired - at any of the companies I've dealt with. Maybe 'cause I'm under 60?

I was 55 when I ER'ed and got the car insurance reduction. I must have been paying too much before that.

 

[ronocnikral]

i've already got a reduction in car insurance b/c I ride a bicycle to and from w*rk (still haven't filled up in 2012!!). Also, I get on the phone with the insurance company and start asking about discounts, usually it ends up with me and the person on the phone going through every discount to see if I qualify.

the discount for not driving back and forth between your institution of labor is usually pretty significant.

 

[East Texas]

It's usually a combination of using the car for work versus pleasure AND your estimated annual mileage. If you changed the usage to pleasure and you increased your estimated annual mileage, your rates might go up. It's a good idea to review your annual mileage usage... well... annually.

For those of you in states that offer defensive driving discounts - it's a significant discount and the course credit is good for three years.

Of course location is everything. Someone living in Houston or Dallas will pay significantly more in auto insurance premiums than those of us living in the boonies.

 

[MBAustin]

Thanks for this thread, I just made this change to remove the commuting and reduce the annual mileage on both of our cars (since DH isn't driving as much as he used to) and it reduced our premium about $300/year. Love that free money!

 

[braumeister]

It's usually a combination of using the car for work versus pleasure AND your estimated annual mileage. If you changed the usage to pleasure and you increased your estimated annual mileage, your rates might go up. It's a good idea to review your annual mileage usage... well... annually.

I think this is right.
When I changed my usage from "to/from work or school" to pleasure usage only, I left my annual mileage the same because I didn't know if it would change. After a few years, I noticed that it hadn't changed at all. My annual mileage seems to run somewhere between 22K and 24K every year, right were it has been for nearly 20 years now.

I don't pay much attention to the rates, because I think I have probably some of the best rates available anywhere. USAA member since 1968, and the last time I had a claim was about 35 years ago.

 

[grasshopper]

I get the Farm rate on the Old Dodge. Never more than 20 miles from the homestead.

 

[Khan]

My car insurance decreased after retirement, house insurance stayed the same.
Car insurance increased after I traded 18 year old car for 2 year old car.

 

[JOHNNIE36]

I am certainly not an expert in the insurance business, but I'll give you my take on it after many years experience, especially auto.
1. There is no such thing as allegiance to the company. You should shop for a better rate every couple years.
2. Progressive told me nobody could compete with them when it came to rates for retirees. Two years later my rate went up $500+ per year because I reached a certain age plateau. Typical of insurance companies.
3. Maintain a high credit score. Rates are tied to this more than you can inagine. This is true for home owners also.
4. Shop online for the best rate. It takes work. I'm in Florida and recently went with 21st Century, through an online agent in San Jose, CA.
5. Ask about all discounts available for affiliation with service orgs, AARP, military, etc.
6. Eliminate work loss premium, consider value of your vehicle vs collision coverage, ask about discount if you bundle home and auto.
7. Pay upfront and eliminate carrying fees or at least pay in three increments, not monthly.
8. Maintain a clean driving record. No tickets.

Just a few of the things I've been through in recent years.

 

[Dreamer]

I called our insurance agency when I retired in 2006 and was told that there would not be an any adjustment, since it was only 6 miles to my former workplace. My part-time job is only 3 miles from my house. Maybe I should try again, since my DH is now retired. He only worked 4-5 miles from the house though. I am going to check with different insurance agencies in 04/12.

 

[East Texas]

I think this is right.
When I changed my usage from "to/from work or school" to pleasure usage only, I left my annual mileage the same because I didn't know if it would change. After a few years, I noticed that it hadn't changed at all. My annual mileage seems to run somewhere between 22K and 24K every year, right were it has been for nearly 20 years now.

I don't pay much attention to the rates, because I think I have probably some of the best rates available anywhere. USAA member since 1968, and the last time I had a claim was about 35 years ago.

I can't speak for other companies; however, USAA puts more weight on annual mileage than usage (work/pleasure). If you think about it, that makes sense. Why should someone who has "Pleasure" usage and driving 50,000 miles a year enjoy less premium than someone who drives to and from work and only drives 25,000 miles a year? Their car is out on the road (more opportunities for accidents) than your car.

Also, make sure you get your defensive driving discount if your state allows it. I took my class online and then logged onto USAA and updated the discount.

 

[check6]

USAA member since 1968, and the last time I had a claim was about 35 years ago.

We need more members like you. Been a USAA member for 40 years and never had a claim. You should see the size of my Subscriber's Account.