Starting A Family? 5 Ways It Affects Car Insurance

After struggling for months to know what to do about our family finances, I realized that there were some pretty big loopholes in our plan. I knew that I needed to insure our family so that I could protect our money in the event of an accident, but it was really difficult to find the perfect plan. I started talking with an insurance broker who could help, and it was amazing to hear the solid advice that he had for us. This blog is all about insuring your family by finding the right insurance policies and keeping your costs as low as possible.

Starting A Family? 5 Ways It Affects Car Insurance

12 September 2022
 Categories: Insurance, Blog

Having a baby or starting a family changes everything for new parents. Many people settle down, buy or change homes, change their entertainment lifestyle, and see a rise in the costs of living. But how does your new addition affect your auto insurance? Here are a few changes that may surprise you and why.

1. You May Drive More or Less

New parents often spend much more time at home with their baby than they would have before. This means fewer miles on the road and a reduced likelihood of filing a claim. However, other parents may put more miles on their car if they do daycare runs, visit family, and have provider visits. That may mean increased risk. 

2. You May Drive More Carefully

New parents rightly want to create the safest environment for their children. This naturally tends to result in safer driving behavior. And good driving habits—including more care in maintaining a vehicle and defensive driving—means fewer auto accident claims. You might even get a discount for completing a safe driving course. 

3. You May Need New Coverage

Check your insurance needs when you experience any life-changing event. The added costs of raising a baby may call for full coverage instead of collision-only coverage, for instance. And if you drive less, you may want to switch to a usage-based insurance policy instead of a standard one — or vice versa if you drive more. 

4. You May Buy a Home

Do you plan to buy a home to raise your family in? If so, look into the advantages of bundling multiple insurance policies into a package. The most common bundle is home and auto, but don't overlook other policies—such as business or umbrella policies—to save a lot of money in premiums. 

5. You May Change Vehicles

Finally, is it time to trade in your sporty car for an SUV, minivan, or four-door sedan? The good news is that even though you may miss your old, fun vehicle, you could save significant amounts when insuring a more family-friendly one. And if one parent will become a stay-at-home parent, you may even get rid of one car and its premiums. 

Where to Learn More

Will your life be affected by any of these areas of potential savings? Might you end up spending more as a parent due to your particular circumstances? Find out by meeting with an experienced auto insurance agent in your state today.