5 Ways Retirees Can Save Money on Car Insurance

My wife's parents are both retired. Lovely people -- careful with their money, smart with their investments, and yet… They own four cars. For two people. Who barely drive.

They've also been with the same insurance agent for over 30 years. I'm almost certain they're paying more than they need to for car insurance. (But hey, I'm smart enough not to stick my nose too far into their business.)

Still, it got me thinking, how many retirees are quietly overspending on car insurance without even realizing it?

If you're in that boat (or just want to make sure you're not) here are a few simple ways to trim your premium without giving up the coverage you need.

1. Shop around -- seriously, just do it

You've heard this one before. But the truth is many people don't compare quotes because they're too busy, too loyal to their current provider, or just don't feel like dealing with the hassle.

But skipping this step could mean leaving hundreds of dollars on the table. Maybe even thousands.

Last year I helped a friend in San Diego check rates and we found a new policy for nearly $400 less per year! That's for the same coverage and same vehicle. All it took was 15 minutes and a cup of coffee.

Want to see how much you could save? Check out this free tool to compare rates and get matched with top-rated insurance providers.

Don't assume loyalty gets you the best rate. Insurance companies change pricing often, and your driving experience gets better each year. A quote that was competitive five years ago might not be today.

2. Consider pay-per-mile insurance

If you're only driving a few miles a week, then pay-per-mile insurance could save you a bundle. These policies charge a low base rate, plus a few cents for each mile you drive.

You can still choose the same coverage options and policy types like traditional car insurance, it's just the billing that is cheaper based on the fact that you drive less.

This type of policy is ideal for folks who:

• Drive less than 8,000 miles per year
• Work from home, or not at all
• Own a second vehicle that doesn't get much use

These plans aren't available in every state, and usually require a small mileage tracker for your car. But setup takes just minutes and could still save you a lot.

3. Reassess your coverage levels

It's common to carry full comprehensive and collision coverage -- especially when your car is newer. But if your vehicle is getting older, it might not make financial sense anymore.

Say your car is worth about $10,000, but you're paying for a policy that would cover up to $30,000. That's not just overkill, it's wasted money.

Instead, you might consider dropping collision or comprehensive on older vehicles. You could also raise your deductible to lower monthly premiums.

Every situation is different, but a quick policy review can often cut costs significantly without leaving you exposed. While you're at it, you may as well shop around and compare quotes with top carriers.

4. Downsize to one vehicle

Many couples keep two cars out of habit. The thought is that if they're fully paid off, there's no real harm, right?

But if you're mostly traveling together, or one of you barely drives, it might be worth downsizing your car footprint.

It'll save you more than just car insurance costs. Maintenance, registration, and all those little car costs disappear when you get rid of a car.

Yes, it can be a lifestyle adjustment. But for many retirees, it's surprisingly doable -- and financially worth it.

5. Ask for senior and low-mileage discounts

This one's easy to miss, but many insurance companies offer senior discounts or savings for low-mileage drivers. You just have to ask.

A quick call to your insurer could reveal some easy savings you didn't know were available.

Retirement is the perfect time to rethink old habits -- including how you insure your car. Whether it's shopping around, reassessing your coverage, or switching to a pay-per-mile policy, there are plenty of ways to trim the fat and keep more money in your pocket.

Don't overpay for another month. Compare car insurance rates today and get matched with top-tier providers with our free search tool.