Can Life Events Affect Your Auto Insurance?
They say that in life, change is good. Hopefully, when things do change in peoples’ lives, it’s for the better. Many people do not realize that when they experience a life event, it can alter their auto insurance needs and costs. Here are some common life events and how they might alter your auto insurance policy.
Most people don’t like to talk about getting older. They see it as a negative thing, but aging can often have a positive impact on the cost of your auto insurance. Once a young driver turns 25, they could see a notable reduction in their auto premium. In addition, as people get older and accumulate more years as a safe driver, they can become eligible to receive discounted premium rates. So while some folks don’t like to talk about aging, it can be great thing when it comes to lowering the amount of money you pay out every year on car insurance.
Buying A Home
There are so many advantages to buying a home, instead of renting. Home ownership can allow you to build up equity in the property, write off your real estate taxes and mortgage interest on your 1040 form and finally feel the pride of owning a lawn mower. Another advantage of buying a house is that you can combine your homeowner and auto policy to receive a sizable discount. The multi-policy combination can often save drivers hundreds of dollars per year. When you get into your new home, don’t forget to contact your insurance agent to combine your policies.
This is a time in life where age does not play to your advantage when it comes to auto insurance. A teenager with a newly minted driver’s license usually causes concern to insurance companies because inexperienced drivers often have more accidents. When you add your eager to drive teen to the auto policy, be prepared to see a hefty jump in your annual premium. The good news is that if your teen is a good student, many auto carriers will issue a discount. So before your teen starts to drive, make sure that they are hitting the books!
By tying the knot, most people will have at least two cars to insure, instead of one. The multi-policy discount will also apply to this situation. Contact your agent to see how you and your better half can save money by combing your policies together. Even better, if you have a house, you can possibly save additional dollars. Having a home and numerous vehicles insured on the same policy can often be a great financial win.
Depending on where you move, it can have an affect on the cost of your auto insurance. Auto carriers often rate the cost of coverage based on where someone lives. If you happen to move to the middle of a major city, your insurance rates will most likely increase because the zip code might have higher crime statistics associated with it or the possibility of physical damage to your car is greater. Suburban or rural residents will have lower rates, due to the auto insurer’s risk factors being lower. Before you move, it might be a good idea to call your agent and see how your new zip code will affect your insurance costs.
Upgrading Your Car
If you plan on getting a newer or better car soon, your insurance costs will probably rise. Many people who finance a car will be required to carry full coverage on the vehicle, which includes both liability and physical damage. If your old car had a liability only policy, your annual premium with the newer vehicle will go up for sure. If you had already carried full coverage, but your new car is more valuable, get ready to pay more. Avoid insurance sticker shock by contacting your agent before you buy another car to see what the impact on your costs will be.
As we progress through life, it can bring many changes, hopefully for the good. When life events take place, be sure to take advantage of some of the many ways that you can lower your insurance costs. Some changes such as a new teen driver on your policy will increase your rates, but you can minimize the impact by making sure that the young person in your life is a good student. Regardless of the kind of life events that you experience, contact your auto insurance agent to determine the affect these changes will have on your insurance situation.
Here’s to life!
Contact Insure On The Spot Today!
If you have any additional questions about how life events can affect your auto policy, please do not hesitate to call Insure on the Spot today! We will be more than happy to answer any questions you may have! Free Quotes in just 2 minuets!