Car Insurance Needs Change Over Your Lifetime

It is important to review your personal car insurance needs regularly to make sure that you have enough coverage, and that you are not paying for insurance you no longer need at all. Also, the discounts you are eligible for will vary over time, and the only way to get the discounts that are coming to you is stay abreast of your status and let your insurance company when important factors change.

Some automatic changes that happen over time will result in lower insurance premiums. Once you reach the age of 25 your basic rates will decrease, and that happens again when you graduate from college, get married, and settle down in a nice neighborhood to raise a family. The career you choose is another source for a possible discount, and so is purchasing a life insurance policy from the same company as your car insurance.

Other changes may result in higher premiums. Obviously, you can expect higher rates if you get a few tickets or are found at fault in a serious accident, but your rates may also go up if your credit score goes down. Since your credit and driving records are only checked at renewal time by most companies, you may not see the increase for many months. Also, if you move into an area with a higher crime rate than your previous address, your insurance rates may increase based on where you live. Your rates can even go up if you change jobs and have a longer commute than what you had previously.

Your insurance needs will change as well. Where basic insurance coverage may be acceptable for a single person, it becomes more important to protect your investments when they include a spouse or children riding with you. Even adding coverage like roadside assistance or towing can give your family more peace of mind, knowing that they won't be stranded if the unexpected happens.