Owning a Car in Retirement: 3 Hidden Money Leaks That Seniors Miss
Once you retire, your driving habits change. While you're no longer commuting to work, you're likely meeting friends for lunch, running errands and maybe even taking frequent road trips. If you have a fixed income, how much you spend matters.
Here are three hidden money leaks that come with owning a car in retirement. Avoiding them can help reduce how much owning your car will cost.
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Overpaying on Car Insurance
When was the last time you shopped around for car insurance? Most people stick with the same company for years because they've received good service or it's the comfortable option. However, with insurance prices fluctuating significantly, not shopping around could cost you a significant amount of money.
It's also important to review your coverage. Some retirees find they aren't driving as much as they once did. This means your coverage might be too much.
"You can pay less for car insurance by comparing quotes and switching providers," said Melanie Musson, auto industry expert at AutoInsurance.org. "You may need to review your coverage and if your vehicle is worth less than $5,000, dropping full coverage may be a good option. Additionally, if you have the ability to keep money in savings in case you need it for a deductible, increasing your car insurance deductible will help you save on premiums every month."
Skipping or Delaying Oil Changes
When your oil light comes on, it's easy to say, "I'll get that done next week." Then weeks go by without your getting around to it. This is especially true if you're not driving every day anymore. However, this procrastination can be costly. Skipping regular oil changes can put extra wear and tear on your car's engine. This can turn an inexpensive oil change into a repair bill that costs thousands.
It's also important to shop around for your oil changes. When there are probably dozens of places to have it done, they might have a wide range of prices.
"The price of an oil change can vary by $50 to $100 depending on where you go," said Musson. "Call three or four reputable shops and ask how much an oil change is. Then you can decide whether paying more is worth it or if you're better off going with a lower-cost service provider."
Not Reviewing Registration
When you receive your car registration renewal, it's important to review it closely. Some states offer senior discounts, but many people don't know about them, so the discounts go unclaimed.
Additionally, some states allow you to enroll in permanent registration if your car is old enough. Simply pay the fee today and you won't pay again for as long as you own the car.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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