August 16, 2017

The Effects of Major Life Events on Auto Insurance Costs

Wednesday, April 29th, 2009 2:00 pm

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Did you know that major events in your life can have a significant impact on your auto insurance rates? Although many people don’t realize it, major life events such as getting married, getting divorced and retiring can all impact the rates you can expect to pay. Therefore, if you experience one of these life events, you should contact your insurance company in order to have your policy reevaluated. This way, you can be certain not to pay more than you have to or to get in trouble for failure to provide accurate information.

Getting Married

Getting married can help save money on your car insurance policy because getting married demonstrates responsibility. In addition, you will likely be adding an additional vehicle to your policy when you get married, and many insurance companies offer special discounts to policyholders with multiple vehicles. So, combining your vehicles onto one policy will not only help reduce the total number of bills you pay every month, it could also save you money in the long run. Be aware, however, that adding your spouse to your policy could potentially increase your rates if your spouse has a poor driving record. In this case, you may need to explore other options in order to make certain you are both properly covered while also saving as much money as possible.

Getting Divorced

Unfortunately, getting divorced or becoming widowed could potentially cause your auto insurance rates to go up. This is largely because you will lose the multi-car discount you might have been enjoying while married. To help reduce costs, take a closer look at your policy and see if there is any coverage you can drop now that you are divorced or widowed. It is also a good idea to do some comparison shopping. Even if you recently did some comparison shopping while you were still married, you should do it again because your situation has changed in a way that will affect the quotes the insurance companies provide.

Retiring

Depending upon your lifestyle, you could potentially enjoy a drop in insurance rates after you retire. For example, you will likely be driving less miles each day, so you might qualify for a discount based on the reduced number of hours you drive. You and your spouse may also decide to downsize to one car rather than several. While this will take away your multi-car discount, you will still save money in the long run by insuring one car rather than two or more vehicles. Once you reach retirement age, you may also be able to participate in programs such as AAA’s Mature Operator Program or AARP’s Mature Driving Course. In many cases, insurance companies are willing to provide discounts to those who complete these courses. Be sure to check with your insurance company first, however, to make certain you follow the proper steps to take advantage of discount opportunities.

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