When you get married, put your teen behind the wheel for the first time, or buy your first home, a big life change can have a ripple effect on your finances.
While it might not be at the top of your list, one of the effects could be your auto insurance. There is a lot more that goes into calculating your insurance rates besides the standard questions; age, gender and driving record. When you reach a major milestone in your life, your new status can impact those rates in unexpected ways.
We would like to discuss five life events that might trigger a premium change in your auto insurance.
Getting Married
Great news for newlyweds: in most cases, being married will lower your auto insurance premiums. Adding a partner to your insurance could mean savings for your household, especially for younger couples. It turns out that married people are less likely than single people to get into an accident. The perks of true love.
Buying a House
One of the biggest milestones in life is buying your first home. While everyone knows that homeowners insurance coverage is a must, becoming a homeowner might affect your car insurance as well.
Like married people, homeowners tend to see better rates on auto insurance. These savings could be even higher when you bundle your car and home policies with the same insurer (more convenient when you have both policies at the same company).
Buying a home is a good time to look at boosting your auto coverage. Look for a policy that will protect your assets and take care of legal costs – bodily injury, uninsured/underinsured motorist bodily injury and property damage – are your best options. As you build up the equity in your home, you will want to make sure your investment is safe, no matter what happens.
Adding a Teen Driver
We know how nervous you will be to see your teenager in the driver’s seat for the first time. You will feel better when you know they are protected under your auto insurance policy.
Teen drivers need to be covered as soon as they pass their driving test and have their driver’s license in hand. Some companies ask you to let them know when your teen has their permit. Your auto premium will increase, because this age group has a much higher accident rate than older drivers, which in turn makes them riskier to insure.
There a few things you can do to help keep your premiums low. For instance, check for a multi-driver discount or a multi-car discount, if your teen has their own car. Good students help keep the premiums down as well. Most insurers offer discounts to young drivers who keep their grades up.
Getting Divorced
If you and your spouse are parting ways, it is important to make sure both of you and any dependents are still covered.
You and your ex will need to get separate auto policies. The in circumstances make this a good time to comparison shop (R.C. Keller & Company can do that for you), because you may lose discounts you had while being married, like a multi-car discount.
If you are sharing custody of your children, check with your insurance company to find out whether you both need to list your children on your auto policy.
Getting a Raise
Congratulations on your raise. Now that you have a little more cash in your pocket (and maybe some financial benefits, like stocks), it’s a good time to take another look at your auto policy. You should consider increasing some of your coverages, like bodily injury and property damage, to make sure if you are in an accident, your income (and growing savings) will be protected. These kinds of policies cover medical bills as well as any legal fees if someone involved decides to sue. When you put a little extra money toward your premium, it will help pay off big time down the road.
Call R.C. Keller & Company
During a major life event, there is a lot to think about. If you need help with insurance changes, give the R.C. Keller & Company experts a call to make sure you are adequately protected and getting the best deal possible. Call us at 847-907-4520 or send us an email.