Retirement is a time to enjoy the fruits of your labor, but it can be challenging when you're faced with higher expenses. One cost that retirees often overlook is car insurance. Luckily, there are several ways that seniors can lower their car insurance premiums and free up some extra money for retirement. Here's a closer look at some of the best ways to reduce auto insurance rates once you stop working.

Advanced Defensive Driving Course

Many states offer discounts on car insurance for drivers who have taken an advanced defensive driving course, as these courses teach drivers how to remain alert and avoid dangerous driving situations. If you haven't taken such a course before, it might be worth looking into. Many states offer these classes for free or at a discounted rate for seniors. Check with your local DMV or senior center for more information.

Telematics and Tracking Devices

Another option for reducing your car insurance premiums is to install telematic devices or tracking devices in your car. These devices monitor everything from acceleration and braking patterns to the number of miles driven per day. Telematics devices can help insurance companies assess the overall risk of insuring you and allow them to provide better pricing options than they would otherwise be able to offer. Be sure to check with your insurer if they offer any discounts based on telematic device installation.

Low Mileage Discounts

Since retirees no longer commute and tend to drive less overall than younger drivers, many insurers offer low mileage discounts that can help reduce your monthly premium costs significantly. Be sure to ask your insurer what kind of low mileage discount they offer so that you can take advantage of it.

Drop Down To One Car

If you and your partner have both retired and each has a car, consider dropping down from two cars to one, which will save money on both registration fees as well as insurance costs since there will be just one vehicle needing coverage instead of two. Additionally, cutting down on gas expenses by having only one car can add up over time.

With so many ways available for retirees to save on car insurance costs, there's no reason why you should pay more than you need to when insuring your vehicle. Explore all available options before settling on an auto policy that works best for you financially and meets your needs in terms of coverage level.

If you need car insurance, talk to an insurance agency near you.