As you start approaching retirement, you'll find that your car insurance rates may start going up. Insurance companies classify older drivers as a greater risk, because of the prevalence of age-related health conditions, cognitive declines and slower reaction times. If your car insurance company has notified you of a rate increase as you approach retirement or beyond, there are a few things you can do to keep your costs down.

Here are some options to help you reduce your car insurance premiums:

Look for Driver Safety Courses

Some car insurance companies will provide you a discount on your premiums if you pass a state-approved class on safe driving. These classes typically review the traffic rules, safe driving tips, how new automotive technology plays a part in driving, and what kinds of effects you can expect from certain health conditions.

The discount offered for these types of programs is usually temporary. You'll see a premium reduction for a couple of years, and then you'll have to take the class again as a refresher in order to get the discount reapplied.

Limit Your Driving

One of the things that insurance companies consider when they determine premiums is how much time you spend on the road. The more time you spend driving, the greater risk you are for a claim. If you are retired and not commuting to work, make sure that you tell your insurance agent. If you're driving a limited number of miles each year, you may be able to qualify for a low-use or recreational driving discount.

Consider Performance-Based Policies

Some insurance companies offer usage-based, or performance-based, insurance policies. If you purchase one of these policies, you'll be given a small device to plug into your car's computer port. The device logs your driving habits for the insurance company to analyze.

Your insurance company can see how many miles you drive each day, how you manage your speed, the way you handle the car and many other details about your driving habits. If you are a safe driver and the device reflects that, you'll likely be able to reduce your premiums accordingly. The other advantage to this type of policy is that the device in your car may make you naturally more aware of your driving habits, which can make you a safer driver.

With so many options to help you reduce your insurance costs, there's no reason to just stick with a rate increase simply because the insurance company is applying it. Talk with your agent about these options and see which ones may help to save you money. To learn more, contact a company like Farmers Insurance Group.