Anyone budgeting for retirement can shave a few dollars off what they plan to spend on insurance by taking some smart steps, the industry-supported, nonprofit Insurance Information Institute points out.
Here are their suggestions:
- Tell your insurance company you're older than 55. There are discounts for that, so make sure you're getting them.
- Take a class. You'll save 5 percent to 10 percent on your auto insurance if you take a defensive driving class aimed at older drivers. These classes teach techniques that are supposed to help you overcome the physical limitations that come with age. Ask your insurance company which class will give you the biggest discount, says Jeanne Salvatore, senior vice president of public affairs for the institute.
- Consider dropping your collision coverage. If you're driving an older car, chances are paying insurance to cover repairs on your car doesn't pay. Salvatore says do the math. As a general rule, if your car is worth less than 10 times the premium you are paying, the additional coverage is not cost-effective. Another way to look at it: If you totaled your car, would you get back much more than your deductible? If not, drop it.
- Install an alarm system. Installing an alarm system that's linked to a service or dials the police-fire-ambulance directly can pay off. You'll save 15 percent to 20 percent on your homeowners insurance, and you'll be paying a small price for peace of mind.
- Include an insurance review in your retirement planning. A smart insurance agent or a knowledgeable accountant with insurance experience can sometimes spot strategies to save a significant amount on the package of insurance -- including life insurance -- that you're buying.