3 Surprising Life Changes That Could Change Your Car Insurance Cost

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Some life events actually impact the cost of car insurance premiums. Learn when you can expect your auto insurance costs to change. [[{“value”:”

Most people know that certain obvious factors affect the cost of auto insurance premiums. For example, drivers who get into an accident, get a speeding ticket, or get a DUI likely won’t be surprised to discover they have to pay more money out of their bank account in premiums because they represent a higher risk to insurers.

But there are also some life changes that may not be so obviously connected to car insurance that can also affect premium prices. Here’s a few examples.

1. Getting married

Tying the knot doesn’t just mean getting a new life partner — it can also mean paying less for car insurance. Auto insurers believe that people who are married are less likely to take risks than their single counterparts are — and are thus less likely to become involved in auto accidents and make insurance claims.

Because car insurance providers think it’s safer to cover married drivers, those who are officially coupled up end up paying about $150 less for auto insurance coverage each year. That’s a nice little bonus for newlyweds (perhaps someone should let Taylor Swift and Travis Kelce know, could provide a little extra incentive).

2. Moving

Relocating to a new ZIP code — or especially a new state — can also impact the cost of auto insurance premiums. That’s because where you live affects premiums due to:

Different accident ratesDifferent insurance requirements (if the move is to a new state)Different risks of crimes like theft and vandalism

It’s best to alert an auto insurer to a move as soon as possible. And in some cases, if the insurance company doesn’t offer coverage in the new location, it may actually be necessary to switch to a different insurer altogether.

In some cases, those who are moving to a new state may need to prepare for sticker shock, as the average car insurance rate by state can vary dramatically. Those in Michigan, for example, pay an average of $5,377 annually, while those in Hawaii pay just $1,571.

3. Becoming a homeowner

Buying a house is also another big life change that affects coverage costs. Homeowners, like married people, are typically viewed as presenting a reduced risk of auto accidents and insurance claims. Basically, insurers tend to like responsibility and stability, and they reward customers for it.

Becoming a homeowner for the first time can provide around a 5% to 10% decrease in auto premiums. It also presents the opportunity to bundle home and auto insurance, which can make both policies cost less. Getting these two kinds of coverage from the same carrier can result in about a 5% reduction on the cost of both policies.

These are all life changes that many people wouldn’t think could affect auto insurance, but that make a big impact. It’s important to alert an insurer to any big shifts in circumstances, from switching to a new job that may have a shorter commute to getting married to finding a new (or first) house. By keeping an insurer in the loop, it’s possible to get the right kinds of coverage at a fair price.

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