 Major changes to your life can affect many things including your auto insurance rate. Big events such as marriage, buying a new home, or retiring can mean that it is also time to reevaluate your auto insurance policy.
Overall there are seven events that can affect your auto insurance:
- Relocating
- Getting Married
- Getting Divorced/Being Widowed
- Buying a Home
- Buying a New Car
- Having Children
- Retiring
How do those seven life changes affect your auto insurance? Here are some of the ways:
- Relocating: If you are moving out of state, you may find that your new state has different laws about required auto insurance coverage.  Your current auto insurer might not even be licensed there. This is a time when you should check with your current insurer and to determine who could provide you with the right coverage for your new area.
- Getting Married: Many insurance companies offer discounts for multiple cars – by getting the cars of you and your spouse under one policy you can save money through joint policies and multi-car discounts.
- Getting Divorced or Becoming Widowed: As difficult and upsetting as a divorce or becoming widowed can be, this life altering event is also a time when you should reevaluate your auto insurance coverage. The joint policies and multi-car discounts you received while married won’t be applicable once you are single, so you will need to check with your insurer to find out what type of coverage and what kind of discount could be provided to you.
- Buying a Home: The purchase of a home can mean that you might qualify for multi-policy discounts. Additionally, factors such as a new neighborhood or being able to garage your car can affect your auto insurance rates.
- Buying a New Car: When buying a new car, consider how much it costs to insure different models. Some companies classify the same car differently, so rates may vary. Rates also are affected by the car’s safety rating, crashworthiness and how attractive that model is to thieves.
- Having Children: The safety of your children is always paramount. In keeping your children safe, you might upgrade to a better car, or to get the best child restraint system. Taking these steps to protect your children can mean you may qualify for better auto insurance rates. Also, as your children get older and start to drive, putting them on your policy or insuring their car can be another major expense.
- Retiring: Retirement can mean either more driving or less driving depending on your lifestyle. You might travel the country or stay close to home – you might even decide that you no longer need a car. When planning for your retirement, you should consider how much coverage you will need to protect your assets and to save money.
Regardless of what kind of change may be occurring in your life, it’s always a good idea to do some comparison shopping, especially when it comes to auto insurance. By keeping in mind your auto insurance costs during some of life’s major events you may be able to save yourself considerable money over time.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.
