Six life changes that could have a big impact on your coverage and rates

There’s an old quote attributed to Benjamin Franklin that’s along the lines of “If you fail to plan, you’re planning to fail.” And although it has sort of becoming a cliché, it’s pretty valid.

Being proactive in just about any circumstance is helpful, and this may be especially true with car insurance. Only thinking about your insurance when you need to use it is a mistake. Even if you have a policy you’re happy with, it’s possible that it will need to be updated or altered based on certain changes in your life, including:

A baby is on the way

If you’re expecting a little bundle of joy, you already know how expensive things are – or soon will be – but there may actually be some good news with regard to your car insurance. Because parents usually drive safer with children – and insurers know this – rates could be reduced. And if you’re planning to upgrade to an auto with more safety features, this might also lower your premiums.

Your marital status has changed or will change

Insurance rates typically go up when more drivers are added to a household. But the good news for you newlyweds is that combining two auto policies will, in most cases, be cheaper than individual policies. Studies also show that married people get into fewer accidents. Another important time to update your car insurance is when you are going through a divorce. This could also be financially beneficial, as you will be going back to a single policy and you probably won’t need the same amounts of coverage.

Your teen will be driving soon

While the first two on this list may lower your car insurance rates, this one will do the exact opposite. And it doesn’t matter if your teen is the most well-behaved and responsible kid on the planet; because teenagers have high accident rates, insurance companies charge more to insure them. This doesn’t mean you won’t be able to qualify for discounts, however. Some insurers will offer discounts if teens maintain good grades, for example.

You’re buying a home

Where you live often has a big impact on your car insurance. If, for instance, you will be moving to an area with a small population, this could reduce your premiums, as there is a lower chance of you getting into an accident. On the other hand, if your new home will be in an urban location, they will probably go up. Bundling a home and auto policy can be an excellent way to cut your rates, no matter where you live. Other discounts may be available for home, condo, or co-op ownership.

You have a new job

While this may not seem like it should have anything to do with your car insurance, it does. If you have a long commute to your new job, expect to pay more. But if your commute is short – or maybe non-existent because you work from home – this could result in a lot of saved money. If this new job means a larger salary, you may also want to increase your coverage so you’ll be better protected in the event of an accident.

You’re retiring

Once you’ve got your gold watch, don’t forget to alert your insurance company. In addition to no more commuting, you may be doing things that can further reduce your rates. Perhaps you have a car or two you’ll be selling. Maybe you’re going to trade in your large city house for a smaller one in the suburbs. Downsizing is usually a great way to cut all costs, insurance included.

If any of these things will have an impact on you soon, now is the time to prepare. Get in touch with NICRIS Insurance for a free, instant quote.