Insurance premiums can be a finicky thing. California law prevents changes to your policy or premium mid term. However, prices can fluctuate when it comes time for renewal. Depending on what has happened to you during the year, auto-related or not, there can be major changes to your auto insurance policy. Here are some typical life-changing events that are also insurance changing events:
- Changing states: If you relocate to a new state you may encounter different laws regarding your insurance – especially in terms of minimum coverage. Also, your current auto insurer may not be licensed in your new state. Check with your current insurer to determine who could provide you with the right coverage for your new area, or if you need to make changes to your current policy to accommodate state laws.
- Buying a Home: The purchase of a home can mean that you might qualify for multi-policy discounts, such as bundling your home and auto insurance under the same provider. On top of that, the other changes that come with a home purchase – such as living in a new coverage area, changing your commute, and being able to garage your vehicle – can also affect your auto insurance rates.
- Having Children: Generally, just having children is not enough to affect your auto insurance policy. However, children may compel you to make other changes that reduce your rates, such as purchasing a safer vehicle. Alternatively, when they grow up to become teenage drivers that need to be placed on your policy, children can turn into a major insurance expense.
- Getting Married: Many insurance companies offer discounts for putting multiple cars under the same policy. By getting the cars of you and your spouse under one policy you can save money via joint policies and multi-car discounts. However, these will vary depending on your insurance provider.
- Getting Divorced or Becoming Widowed: Unfortunately, this can reverse the discounts you were eligible for when you were married. You should check with your insurer to find out what new type of coverage and what other discounts could be provided to you.
- Retiring: Retirement in and of itself doesn’t affect insurance. But, it does affect your driving habits. 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.
Regardless of what kind of change may be occurring in your life, it’s always a good idea to do some comparison shopping for auto insurance to secure the best rates. Keep your insurance in mind when it comes to these life changing events so you can plan accordingly for changes in your policy payments or coverage.
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.
