Can Life Events Affect Your Auto Insurance?

Just went through a major life event, like marriage, moving out, or new car purchase and wondering what happens to your auto insurance policy? Keep reading to find out!

(If you’re in Chicagoland and have questions about how a life change might affect your coverage, our agents are here to help – call 773-202-5060 for personalized advice.)

Does getting married affect your car insurance rates?

Getting married can actually lower your car insurance rates. Insurers have found that married drivers tend to file fewer claims, so they often get better pricing. In fact, one analysis found a married driver pays roughly $149 less per year for auto insurance than a single or divorced driver, on average. If both you and your spouse have cars, combining them on one policy can bring additional savings: you might qualify for multi-car or multi-driver discounts, and you’ll simplify your billing.

 But why do married people pay less? Insurance companies view marriage as a sign of stability. Statistically, married individuals (especially younger drivers) are involved in fewer accidents. As long as neither of you has a poor driving record, your joint policy will likely cost less per person than two separate ones. However, if your new spouse has a bad driving history or very low credit score, that could offset some benefits since the insurer factors in both drivers’ risk levels. Always compare which spouse’s policy is best to keep or whether switching companies makes sense after the wedding. And if you’re also buying a home together, consider bundling your homeowners and auto insurance for further discounts.

Will a divorce change my auto insurance policy?

When you divorce, you’ll need to separate your car insurance policies as well. Any multi-car or marital discounts you enjoyed as a couple might end once you’re single. Each person must insure their own vehicle moving forward, so expect your premiums to adjust accordingly. Often, losing the married status can mean a slight uptick in price (since, as noted, single drivers are seen as a bit higher risk than married drivers). You also lose any multi-vehicle discount if only one car remains on your new individual policy.

If you’re going through a divorce, make sure to notify your insurer. Update the vehicle titles and addresses for each policy so that each car is insured under its primary owner at the correct location. If one spouse moves to a different area, that could further change their rate (for example, moving out of a suburban home to an apartment in the city might raise costs due to location risk). It’s wise to coordinate the timing – don’t cancel a joint policy until both parties have secured separate coverage, so nobody is left uninsured. While divorce is difficult, sorting out your car insurance early will prevent any coverage gaps or legal issues (remember, auto insurance is required in almost all states, so each ex-partner needs their own policy right away).

How does moving to a new state or city affect my car insurance?

Insurers base part of your rate on your location, right down to your ZIP code. So if you move to an area with more traffic, higher crime, or more frequent severe weather, your risk (and premium) can go up. On the other hand, moving to a quieter or safer locale might lower your costs. For example, if you relocate from a small town in Illinois to downtown Chicago, you’ll likely see a hike in your premium due to the increased chance of accidents or car theft in the city. On the other hand, a move from an urban area to a rural community usually means fewer accidents and claims, which could reduce your rate. Insurers also consider things like local repair costs and even medical costs; densely populated cities or regions prone to natural disasters (hail, hurricanes, flooding) tend to have higher rates to cover those risks.

But what if you move to a higher-crime area? It will cause your comprehensive coverage premium to rise. Comprehensive insurance covers theft and vandalism, so if your new ZIP code has more car break-ins, insurers will charge more for that risk. The same goes for moving to an area with a high rate of uninsured drivers. You might see a bump in your uninsured motorist coverage costs if the risk of hit-and-run or uninsured accidents is greater. (In fact, some states legally require insurers to include uninsured motorist coverage in every policy to protect drivers in high-uninsured areas.) It’s a good idea to check local crime rates and insurance costs when you’re moving; your agent can provide a quote for your new ZIP code in advance so you aren’t caught off guard.

Do you need to change your car insurance when moving out of state? Yes, if you move to a different state, you’ll generally need to update your auto insurance to meet your new state’s requirements. Each state has its own minimum liability limits and insurance laws. For example, some states require additional coverages like Personal Injury Protection (PIP) or higher minimum liability than what your old state mandated. You’ll also need to register your car in your new state (typically within a limited time window), which usually means showing proof of insurance that meets that state’s laws. It’s wise to contact your insurer before the move; they can often transfer or rewrite your policy for the new state. In some cases, if your insurance company doesn’t operate in the state you’re moving to, you’ll have to switch insurers. Don’t drive in your new state for long without updating your policy – not only is it required to register with the Department of Motor Vehicles (DMV), but if you have a claim, not having proper in-state coverage could cause headaches.

How much will my insurance go up if I add a teen driver to my policy?

Teen drivers (under 20) are the riskiest group to insure because they have far higher accident rates due to inexperience. So when you add your 16-year-old to the family policy, don’t be surprised if your premium jumps dramatically. In fact, industry data shows an average 70% to 100%+ increase for adding a teen driver. One study even found that adding a 16-year-old male driver could raise a married couple’s auto insurance cost by about 158% (nearly double the premium). 

However, there are a few ways to soften the blow. First, ask about a good student discount. Many insurers will knock 5% to 25% off if your student maintains good grades (the logic being that responsible students may be safer drivers). Completing a driver’s education or defensive driving course can also help reduce the risk and sometimes the rate. Additionally, the type of car matters: insuring your teen on an older, moderately valued car (with modern safety features) will cost less than putting them on a brand-new sports car. You might opt for higher deductibles or even consider a “shared” vehicle for the teen rather than making them the primary driver on your priciest car.

What if your teen goes to college away from home? If your child heads off to college and won’t have a car on campus, let your insurer know. Many companies offer a “student away at school” discount when a licensed teen or young adult is living over 100 miles away and not driving the family car except on breaks. In this case, you can keep them listed on your policy for occasional use (so they’re still covered during visits), but benefit from a lower rate due to their reduced driving. Alternatively, if they take a car with them to school in another state, you’ll need to ensure the policy is adjusted to that new location (and meets the state insurance requirements just like any move). Once your young driver finishes school or reaches around age 25, you’ll typically see substantial rate reductions as they become more experienced and statistically safer drivers.

Will my car insurance go down if I retire or start working from home?

If you retire or otherwise significantly reduce your driving (for example, switching to a remote work-from-home job), you can likely get a discount on your car insurance. Many insurers offer low-mileage discounts or adjust your rate based on usage. Basically if you stop commuting 30 miles a day and now only drive locally for errands, the insurer looks at it as the fewer miles on the road lowering exposure to accidents, so your risk drops. Insurance companies reward low mileage by charging lower premiums to those who drive under a certain threshold (often around 5,000–7,500 miles per year). You might be reclassified from a “commuter” to “pleasure” driver in their system, which typically comes with a cheaper rate. In some cases, you could save a modest amount (an average low-mileage discount might be ~5%), but some insurers advertise discounts of up to 20–30% for extremely low annual mileage or for enrolling in usage-based insurance programs.

It’s important to inform your insurer about this life change. Give them your updated estimated annual mileage or any job change that affects how you use your car. For example, if you used to drive 50 miles round-trip daily but now in retirement you only drive 50 miles a week, let them know – they may lower your premium accordingly. Additionally, retirees (especially drivers over 55) may qualify for senior driver discounts or defensive driving course discounts in some states. Keep in mind, if your daily driving increases (say you take a new job with a longer commute or start a side gig as a delivery driver), the opposite can happen – more miles could mean a premium increase. Always ensure your insurer has the correct usage info so you’re properly covered. Many companies now have telematics devices or apps that track mileage and can automatically adjust rates to your actual driving habits.

(Many people ask: “Can I get a discount after retiring from a long commute?” The answer is yes, most insurers will lower your rate if you drastically cut down your driving, so be sure to request a review of your policy when you retire or start working from home.)

Do I need to update my insurance if I buy or sell a car?

A new car purchase is a major change. So you’ll need to inform your insurer before you drive off the lot, in many cases, to make sure the new vehicle is covered. If you’re replacing one car with another, your policy can be updated to reflect the new ride. If you’re adding an additional car, you’ll want to add it to your policy (which may qualify you for a multi-vehicle discount if you didn’t have one already). Keep in mind that insurance costs can vary a lot by vehicle: a brand-new car that’s expensive to repair or likely to be stolen will cost more to insure than an older, reliable model. Also, if you finance or lease a car, the lender will require you to carry comprehensive and collision coverage (full coverage), which is more expensive than just liability insurance. Factor that into your budget when car shopping.

On the flip side, if you sell a car and are not replacing it, you should remove that vehicle from your policy (once the sale is final). This will save you money since you’re no longer insuring a car you don’t own. However, don’t cancel your insurance outright if you still have any vehicles left to drive. If you happen to be selling your only car and not getting another immediately, look into options like non-owner car insurance to stay covered for occasional driving – and to avoid a lapse in coverage, which can make future insurance more expensive. Always notify your agent or insurer as soon as a vehicle change happens. Driving an uninsured new car, even for a day, is risky and potentially illegal. Fortunately, insurers make it easy to update vehicles on your policy with a quick call or online form.

What happens to my car insurance if I get a DUI or need an SR-22?

In insurance terms, a DUI (driving under the influence) marks you as a high-risk driver, and insurers will respond by sharply increasing your premiums or even canceling or non-renewing your policy. On average, a single DUI conviction can raise your car insurance rate by about 90% (nearly double what you were paying). In dollar terms, if you paid $1,900 a year before, you might pay roughly $3,600 a year after the DUI. Some states and companies are a bit more forgiving, while others impose surcharges well over 100%. These surcharges typically stick around for 3–5 years (as long as the DUI stays on your driving record). Additionally, a serious violation like this might strip away any safe-driver discounts you had.

After a DUI, you may also be required to file an SR-22 or similar certificate of financial responsibility with your state. An SR-22 isn’t insurance itself; it’s a form that your insurance company files with the state DMV to prove you carry the legally required insurance after a violation. Common scenarios requiring SR-22 filings include DUI convictions, driving with a suspended license, or multiple serious tickets – basically, events where the state wants assurance that you’re insured moving forward. Not all insurers offer SR-22 filings, so you might need to switch to a company that does (often, insurers that specialize in high-risk drivers, like certain non-standard insurance carriers). There is usually a small filing fee, but the real cost comes from the higher premiums due to the violation.

If you ever find yourself in this situation, try to maintain continuous coverage and a clean record going forward. Shop around for rates – some insurers penalize DUIs more than others, so a different company might offer a somewhat better price. Over time (after those three or more years of safe driving), your rates should gradually come down as the DUI recedes into the past. And of course, focus on safer driving habits to prevent any further incidents. It’s a tough lesson, but many drivers do rebound from a DUI with careful effort. If you need help finding SR-22 insurance in Illinois or have questions about high-risk coverage, Insure on the Spot can assist in securing an affordable policy that meets state requirements.

Frequently Asked Questions

Can life events affect car insurance rates? 

Yes. Major life events, such as getting married, moving, adding a new driver, buying a car, or retiring, can all affect your auto insurance rates. Insurers adjust your premium based on changes in risk associated with these events, so your cost can go up or down after a big life change. Always let your insurer know about these events to get an accurate rate and proper coverage.

What life events can impact my auto insurance the most? 

Some of the biggest impacts come from adding a young driver (which can drastically increase premiums), getting a DUI (which can nearly double your rates), or getting married (which often lowers rates). Other notable events include moving (location change), divorce (needing separate policies), retirement (driving less), and buying a new car. Each of these can change the risk factors that insurers consider.

Does getting married lower your car insurance? 

Usually, yes. Being married can help lower car insurance premiums. Married drivers are statistically less likely to get into accidents, so insurers often charge them less. Many couples also save money by combining policies into one account, which can qualify for multi-car discounts. The exact savings vary, but married drivers might pay around 5%–15% less than they did when single, assuming both spouses have good driving records.

Do I need to change my car insurance if I move to another state? 

Yes. If you move out of state, you must update your car insurance to meet your new state’s minimum insurance requirements. This often means getting a policy from an insurer licensed in the new state and adjusting coverages (since different states require different minimum liability limits, and some require add-ons like personal injury protection or uninsured motorist coverage). Also update your address with the state DMV and insurer; your premium will be recalculated based on your new location.

How much does adding a teen driver increase insurance? 

Adding a teen driver to your policy will significantly increase your insurance premium. It’s common to see a 50% to 100%+ jump in cost. For example, if you’re paying $100 per month, it might rise to $150–$200+ per month after adding a 16-year-old. The exact amount depends on factors like your state, the insurer, the teen’s gender (young males tend to cost more), and the car they’ll drive. To offset the cost, ask about discounts for good grades or driver training for your teen.

Will my car insurance go down when I retire or drive less? 

It often does. If you retire or significantly reduce your annual mileage, let your insurer know – they may apply a low-mileage discount or recalculate your rates. Driving fewer miles lowers your risk of accidents, which can translate to savings on your premium. The reduction might not be huge (maybe on the order of 5% to 10% for moderate drops in mileage), but every bit helps. In some cases, switching from a long daily commute to hardly driving at all can yield substantial savings over time.

How should I handle car insurance after a divorce? 

After a divorce, you and your ex-spouse should each get your own auto insurance policy. Remove each other from any joint policy once separate coverage is in place. Each person will insure the vehicle(s) they keep. Be aware that you might lose some discounts (for example, multi-car or married couple discounts), so your individual rate could be higher than your share of the old combined policy. It’s wise to compare quotes from a few insurers when separating policies, and make sure to update addresses, vehicle ownership, and any other details with your insurer during the transition.

What is an SR-22, and will I need one after a DUI? 

An SR-22 is a form that an insurance company files with the state to prove you carry the required insurance coverage. You might need an SR-22 after certain driving offenses, like a DUI, major at-fault accident, or driving without insurance. Essentially, the state mandates that you maintain insurance and have proof on file. If you’re required to get an SR-22, you’ll need to contact an insurance company that offers this service (not all do). They will add the SR-22 endorsement to your policy and send the form to the state’s motor vehicle department. Keep your insurance active, because if your policy lapses while you’re under an SR-22 requirement, the insurer will notify the state and you could face license suspension. The SR-22 itself is usually not expensive to file, but the violation (like a DUI) will make your insurance premiums much higher.

Will buying a new car affect my insurance?

Yes, buying a new car can change your insurance premium. A newer or more valuable car is typically more expensive to insure than an older, inexpensive one. This is because it would cost the insurer more to repair or replace after an accident. If you finance the car, you’ll need full coverage (which includes collision and comprehensive insurance), adding to the cost. That said, new cars often come with advanced safety features which could earn you some discounts. Always update your policy immediately when you purchase a vehicle. Before buying, you can even ask your insurer for a quote on the specific model to understand how it will impact your rate.

When should I tell my insurance about a life event change? 

It’s best to inform your insurance company as soon as the change happens (or just before, if possible). For example, if you’re moving, let them know your new address and effective move-in date; if you’re getting married, update your marital status and look into combining policies shortly after the wedding; if a teen in your household is about to start driving, talk to your agent before they get their license. Prompt updates ensure you’re properly covered at all times and help avoid any claim denials or complications. Plus, you might benefit from applicable discounts sooner. Insurance is one of those things where it’s better to keep your provider in the loop about major life changes, both to stay legal and to potentially save money.