Car insurance rates go up and down for many reasons, which makes it important to shop around for car insurance from time to time. The following article talks about different milestones associated with changes in your car insurance premiums, including getting your own policy, turning 25, getting married, having children, buying a house, turning 50, and retiring.
Milestone 1 of 7: You get your own car insurance policy
When you get your first car insurance policy, sticker shock may set in, especially if you move from your parents’ policy to your own. Younger drivers in particular have to pay higher premiums. Car insurance companies view younger drivers as more of a risk due to their inexperience and tendency to have more accidents.
Two options to lower your rates is to take a driver’s education class and to get good grades, both of which usually result in discounts from most car insurance companies.
Milestone 2 of 7: You turn 25
While you shouldn’t expect your car insurance rates to go down on the day of your 25th birthday, expect to see a decrease in cost at your next renewal. Keep in mind that you need to develop a good driving record to qualify for lower rates. So, if you have only driven a few years before turning 25, you might need to wait a little longer before you qualify for lower rates.
In addition, you can take advantage of student discounts at this time, if applicable, to help save money on your insurance.
Milestone 3 of 7: You get married
Marriage represents another car insurance milestone, usually resulting in lower rates for both people. After you marry, you should seriously consider combining your policy with your significant other to save money, as combining two cars on the same policy usually gets you a discount with many car insurance companies.
This might also represent a good time to shop around for new insurance, especially if you and your spouse both have clean driving records.
Milestone 4 of 7: You have children
When you have a child is another car insurance milestone. Many families buy bigger and safer cars, such as minivans, to help protect their children from injury during an accident. This in turn should lower your car insurance rates since you now drive a safer car. Also, many of these safer cars carry state-of-the-art safety features, which also usually warrant a discount for even more savings on your car insurance rates.
Milestone 5 of 7: You buy a house
Depending on where you decide to settle down and buy a home also affects your car insurance rates. If you live in a quiet, residential area that sees little traffic, expect your rates to go down. You can also combine policies, such as auto and home insurance, for discounts on both.
Owning a home with a garage can also lower your rates, as insurers view a garaged car as more protected than one parked on the street.
Milestone 6 of 7: You turn 50
The age of 50 represents another birthday when you can expect your car insurance rates to go down. At this age, the kids in many families have gotten old enough to have their own, separate policy, lessening your accident risk.
In addition, keeping a clean driving record over the years can tag you as an expert driver by car insurance companies, warranting even more discounts.
Milestone 7 of 7: You retire
At the age of 60, expect to see your car insurance rates start to rise again. Insurance providers see seniors as a riskier group to ensure since they tend to have more accidents compared to middle-aged drivers. Older drivers also tend to require more expense when being treated for injury. You can help alleviate some of the increased cost by taking an approved mature driver’s education class.
As you can see, certain milestones in your life warrant an increase or decrease in your car insurance rates depending on the event. So it’s wise to shop around for car insurance on a regular basis to save money when possible. You should also strive to keep a clean driving record to help keep your rates low.