Are Your Car Insurance Premiums Increasing With Age? Three Ways You Can Save

21 April 2015 by Elijah Steward

Car insurance rates can fluctuate based on your age and your lifestyle. As you approach retirement age and beyond, you may notice that your renewal rates start to increase. Most insurance companies automatically classify older drivers as higher-risk clients because of the potential for cognitive decline, slower reaction times and some age-related health risks. If your insurance company is increasing your rates, here are some tips to help you deal with it.

Change Your Driving Habits

The more time you spend on the road, the greater risk you face of an accident. As a result, insurance companies often charge higher premiums if you drive more. When you retire and you aren't spending as much time commuting or traveling for work, tell your insurance agent. This change in your driving habits can reduce your risk since you may qualify for a recreational driving or low-mileage discount.

Take Driver Safety Classes

Some car insurance companies offer discount structures for clients who are proactive about their safety on the road. One great way to qualify for these types of discounts, if offered, is to take a driving safety class periodically. In most cases, these classes cover things like the standard traffic rules, safe driving guidelines and how you can use new automotive technology to your advantage on the road.

If you can pass an approved class on safe driving and show your insurance company a certificate of completion, you may qualify for a temporary discount. Most insurance companies extend the discount for a couple of years and then ask that you take the class again as a refresher to extend those savings.

Ask About Performance-Based Coverage

One of the newest options for many insurance companies is a performance-based or usage-based insurance policy. When you buy a policy like this, you'll receive a base premium according to your estimated risk level. Then, the insurance company supplies you with a small device like a USB drive that you can plug into your car's computer.

This device tracks how you drive for a predetermined period of time. The insurance company will evaluate the data from the tracking device to see how safe you are on the road. The more responsible your driving, the better insurance rates you're likely to receive.

The device records how many miles you drive every day, your average speeds, any sudden braking or movements and other data from the car. One advantage to this type of policy is that it may make you more aware of your driving habits, making you safer on the road.

With so many different ways to save money on your car insurance, age-related premium increases shouldn't have to strain your budget. Talk to insurance agents like Estabrook & Chamberlain Insurance Inc today to see what your options are.

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