Choosing The Right Life Insurer: What You Need To Know

« Back to Home

3 Life Changes That Should Make You Reevaluate Your Current Auto Insurance

Posted on

When you have a major life change, it affects every other area of your life. One thing that may be affected by major life changes and many individuals forget about is your auto insurance. Below are three major life changes that could positively affect your auto insurance. If you are going through a major life change, you should discuss your situation with your insurance agent to make sure you have the best policy for your new situation and you are getting the best insurance rates available to you. 

Purchasing a Home 

Purchasing a home can affect your auto insurance in several ways. First, most auto insurance companies offer homeowners a discount simply for being a homeowner. Often, you do not even have to purchase your home insurance through the same company as your auto insurance in order to access these discounts. You simply have to submit proof of home ownership and ask your insurance company to recalculate your rates. 

If you want an even bigger discount, you should consider combining your home insurance with your auto insurance. By combining your insurance you often get a significant discount on both policies. 

However, you may want to take the savings you receive and put them towards increasing your liability coverage. If you are involved in an accident and your liability coverage does not cover the cost of the accident, the injured party may sue you and go after your large assets, such as your home. This is not something a renter has to worry about, so a lower liability coverage is usually fine for renters. 

Getting Married

Getting married can reduce your auto insurance premiums. This is because, statistically, people who are married get into fewer auto accidents than those who are single, which makes you less of a risk. Similar to buying a home, you simply have to show your marriage certificate to your insurance provider and ask if they will recalculate your premiums. 

If both you and your spouse have clean driving records, you can save more money by combining your auto insurance policies. However, if one of you has a blemished record because of an accident or a DUI, then it is usually less expensive for you to keep separate policies and only pursue the married status discount. 

It should be noted that getting divorced or separated may cause your premiums to increase. However, it is still important to inform your insurance company of these major life events if you are benefiting from a marriage discount and your status changes. 

Having Children

Having a baby can lower your insurance costs for several reasons. First of all, many parents opt to upgrade their vehicle to a safer family car. Safer vehicles tend to have lower insurance premiums. Additionally, parents are often thought to drive more carefully than those who don't have kids, so your insurance company may offer you a discount because you are considered a lower risk. Finally, if one parent transitions to become a stay-at-home parent, they may drive the family vehicle less, which also results in lower insurance rates. 

As a parent, you may also want to consider adjusting your current policy. For example, some parents choose to raise their insurance limits and pay more each month so they know they will be fully covered if an accident occurs. Others opt to lower their monthly payments and pay a higher deductible in order to free up some money for monthly expenses. 

Additionally, you may want to check which child-related expenses your current policy covers. For example, your current policy might cover the cost of a new car seat if you are in a minor accident, or you might have to pay for it yourself. To learn more, contact insurance companies like Family Insurance Centers.