True or False: The cost of auto insurance goes down when we retire?
Congratulations, we’re finally retired. We worked hard for this, and now it’s time to start living our dreams. We’ve got nothing but time--time to spend with our family and friends, read the books that we’ve been piling up on our shelves, plan some vacations and… review our insurance coverage?! Yes. Before we relax too much, let’s look for a couple of ways we can save money and protect our assets.
For example, we may be able to get a discount on our auto insurance, now that our driving habits have changed. And some insurance companies offer discounts for retirees who take a defensive driving course.
Also, even if we’re about to pay off the mortgage, it’s still important to have homeowners insurance in case of fire, burglary and natural disasters. We may even be able to get a discount because we tend to spend more time at home and maintain our property.
And we ought to think about umbrella liability insurance to protect everything we’ve accumulated over the years. An umbrella policy provides coverage over and above the standard auto and home insurance. Though it’s unlikely, one lawsuit could wipe out everything we have if we’re not covered.
Finally, it's also time to reassess our health insurance needs, since we no longer have an employer to help provide coverage. For health insurance, this can mean signing up for Medicare, and considering supplemental coverage beyond what Medicare provides.
So, in a nutshell--if we take a little time now to assess our insurance, we can enjoy our retirement with more comfort—and maybe even a little extra cash!
So back to our initial question: Does the cost of auto insurance go down when we retire?
Generally, yes. Since we are no longer using our car to commute to and from work, we may be able to have our car rated for pleasure use, which can often lower the rate.
I'm Hiawatha Blake for My Financial Minute. Check back often to continue the conversation.
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Wells Fargo Insurance, Inc. (Minneapolis, MN) is a licensed agency that represents — and is compensated by — the insurer based on the amount of insurance sold.
Investment and Insurance Products:
- Are Not insured by the FDIC or any other federal government agency
- Are Not deposits of or guaranteed by a Bank
- May Lose Value