Your auto insurance coverage is a fluid and ever-changing plan that should be updated as you reach new milestones in your life and career. Without speaking with your insurance agent after major events occur, you could be leaving money on the table and paying more than you actually should.
As you grow, allow your insurance to grow with you to ensure you have suitable coverage at all times. This strategy will help you get the most bang for your buck and make your insurance experience all the more successful.
Here is a timeline of when you can receive an insurance discount throughout your life:
1. Your very first policy
As soon as you get your first car and begin driving, you'll need the requisite insurance. Although, you'll be on your parents' plan, there are still discounts available that pertain to you. If you get good grades and maintain a stellar driving record throughout your teen years, then your family as a whole can receive discounted car insurance. You might not be able to pocket the additional savings yourself, but it sets a good precedent for your later years.
2. Your own insurance
You can choose to stay on your family's plan - if they'll have you - for a number of years after moving out on your own. However, you might be in the market for a policy that's under your name and responsibility. Though this isn't always advised until you're sure you can afford the payments along with your other bills, it's still a chance to speak with your insurer regarding discounts. If your new adult car is a hybrid or you use it infrequently, then you are eligible for a discount under most plans.
3. Turning 25
Turning 25 is a milestone! Depending on your driving history, some insurance carriers may offer better rates once you turn 25.
4. Getting married
When you and your spouse elope, not only will your driving record be up for review to determine your insurance rate, but so will your significant other. If your husband or wife is a risk-averse driver, then it could reflect well on you, garnering lower rates.
5. Having a kid
With your family expanding, you'll likely want a larger vehicle to accommodate your little one. And with this new purchase, you could opt for advanced safety and security features to ensure your child is protected at all times when riding in the vehicle. Likewise, your insurance company can provide a discount because your car is less susceptible to accidents and expensive damages as a result of these technologies.
6. New job
The more education and job experience you have, the less likely you are to engage in risky driving behaviors. As such, when your career moves along and you get a new job, you could be eligible for an insurance discount without even knowing it. Providers will compare your personal salary and job type to others with similar employment to help determine what your exact insurance rate should be. In some cases, you could end up paying less.
7. New relocation
Along with your new job, you may have to make a big move to another city or state. Because of this relocation, the likelihood of you getting into a wreck may decline depending on your proximity to densely populated regions. High-volume areas are typically accompanied with increased levels of crime and car accidents. The farther away from big cities, the lower your insurance rate typically is.
8. Hitting your 50's
Once you've navigated throughout a large portion of your life and come out with just a few scratches, your insurance company may reward you for being such a loyal and accident-free driver. Further, by the time you reach 50, you likely have a higher salary, affording you the opportunity to purchase safer vehicles.
9. Sending your kid to college
When your kids grow up and move away to college, they might not bring their vehicles with them, which means your family insurance rate may decrease. Further, if you child continues to be a good student, your rate could decline because insurers reward good grades.
When you finally hit the day of your retirement, you likely have all your finances in order and probably won't be driving as much because you no longer have a daily commute to the office. Plus, your car is probably a bit older, which means it's cheaper to insure. These factors can lead to reduced car insurance rates as you retire.
You may not be readily aware of discounts upon your first interaction with your insurance agent, which is why you should keep a dialog going throughout your life to ensure you're getting the best rates.
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