Throughout your lifetime, you will find that there are many changes that will occur. You graduate high school and go off to college. You get married and have children. So many exciting things happen as you progress in life, and while you may not realize it, these things affect what you pay for your car insurance. Because of this, the rule of thumb is that if something in your life changes let your insurance company know. By not doing so you are cheating yourself out of the possibility of paying a lower amount for your car insurance.
Moving to a new home is certainly cause for celebration. Did you know however, that where you live plays a part in your auto insurance rates? This is something that everyone should know about. Any time you change addresses your insurance company should be informed right away because it may be that your rates will go down. Many factors affect how much you pay for insurance. Some of these things include crime rate, population density, accident statistics specific to the area, income levels general to the area, etc. Let you insurer know about the change and see if maybe you can get a better rate!
A New Driver in the Family
When your teenager gets their driver’s license, it is an exciting and scary experience! The first thing you should do before this milestone is reached is contact your insurance provider. Some states even require that the teen be insured before a license is issued. For instance, in North Carolina you must be insured before the DMV will give you a license. Even if you do not have a car you must have what is called non-owners insurance. Check your state laws to know exactly what steps you have to take. Some places only require you to be insured if you will be driving or if you own your own vehicle. If you fail to add your child to your insurance and an accident does occur, you will not be covered and this can be an absolute nightmare!
The downside to this life change is that first time drivers can also drive up your insurance rates. Even though there is bound to be an increase, by doing some research and contacting the right people you can get deals that fit better into your budget. In order to keep costs reasonable, talk to your insurance company about special promotions for teenage drivers. Some companies give lower rates to teenagers who have are on the honor roll or have at least a 3.0 GPA. Some will take into consideration that they have taken and passed a driver’s education course. It cannot hurt to ask and there are some insurance companies that will not offer this information to you unless you ask.
Getting married requires you to change so many things. You must change your name through the social security office; change your address through the post office and so much more. With so much going on, it may not occur to you that your auto insurance company should be notified of your new marital status as well. Many times you can get a substantial discount if you and your new spouse combine policies, so you will want to put this on your do-to list! This does not just go for married couples though. Domestic partnerships are also taken into consideration for discounts and there are several places in which you do not even have to combine all of your policies to get a better rate.
If you have recently become employed, it may be worth your time to share this information with your insurance company. How much you drive your car plays a role in the rates you pay. If you are no longer working, then the distance you commute each day may be zero. Though some companies do not take commute and mileage into account, it can still help in some cases. This can help shave off some of the money you pay to them each month and if you are unemployed, every penny counts!
The type of job you do may also affect your rates. If you are a nurse, teacher or civil service worker (police officer, postal work, firefighter, etc.) then you may qualify for a significant discount.
There are many other things that affect the amount you pay for your auto insurance. If you are unsure of the need to report a particular change, call the company. When it doubt, always ask. It can save you more money than you realize.
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