Will you be driving less in retirement?
It's true that when some people retire, they hit the road to see the world. In such cases, they might put more miles on their vehicle than they did when driving to work every day. However, the average person drives less. The core question should always be: "Will you be driving less as a result of the change?" Baisden says.
According to Barry, 12,000 miles per year is the typical mileage of a commuter going to and from work, as well as general traveling and errand running. Usually, retirement will reduce a driver's premium because it eliminates the work commute. "Retiring usually drops that figure to 7,000 to 8,000 miles," he says.
Most auto insurance companies recognize this drop in annual driving as a reduction in risk and will adjust premiums accordingly. The amount each insurance company will reduce the premium is different, so it's the ideal time to do some comparison shopping.
"You might be eligible for discounts and savings," Baisden says.