Everyone knows that Houston's traffic is significant. If you are a commuter, you might deal with it every day. Yet, the day will come when you don't have to think about your daily commute because you retire. Did you know that when you do, your car insurance risks might drop? You might even be able to save money on your policy as a result. Here's why.
Car insurance differs based on the driver. Use and mileage usually have a big impact on how much risk you pose the insurer. So, call your agent when you retire. You might benefit in the end.
Why Insurance Risks Drop
When you filled out your insurance quote, the agency likely asked you how many miles you drive per year. They might also have asked you about the primary use of your car. If you mostly drove to commute, it likely won't be hard to calculate your mileage.
But, depending on how and how much you use your car while working, did you know that your risks might have gone up?
Let's think about it in a different way. You might drive the same route every weekday to go to work. On every inch of that pavement, there is a chance that you might have a wreck or other mishap. You will face those risks constantly, and you never know when you might cross a line to from a risk to a certainty. So long as you have car insurance, you might be able to cover your personal losses.
However, once you retire, you likely won't use your car in the same way. You might not drive the car the same distance every day. You might only use it for leisure activities. Thus, your driving risks might drop because you won't accrue as much mileage. Always let your insurer should know about the changes. They might be able to offer a lower rate the next time you renew your policy.
Still, Don't Cut Coverage
Just because you have retired doesn't mean you should lower your coverage limits just to save extra money. You will still drive, and you might even rack up more mileage than you did while working if you decide to travel. Maintaining full coverage (liability, comprehensive, collision etc.) will serve as important a purpose now as it did when you worked.
When your policy comes up for renewal, ask your agent if they can adjust your annual mileage rates. That can help you ensure your policy is always current to your risks.
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