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Abhishek Gaur

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When To Update Your Car Insurance: Life Events Checklist


Crucial life events like marriage, having children, getting a job, or even suffering a major accident impact your insurance premium rates. Your marital status, age, and gender have a profound role in the amount of insurance premium that you have to pay. Insurance companies consider several factors when they decide the premium rates for insurance coverage. 


Young females usually pay the lowest insurance rates. However, most people do not know the minute details and factors that impact insurance premium rates, so if you are one of them, you must continue to read this blog post. Also, if you wish to get hassle-free and cost-effective car insurance, you can go to Panda7.


Life Events And Why They Have An Impact On Policy Rates

Marital Status

Marriage changes a lot of things, and insurance rates are just one among the many things that go down after you get married. Insurance companies analyze the risk profile of their client before they decide on a premium rate for them. 


Studies and surveys have shown that married people have a better track record when it comes to safe driving when compared to single people. However, before asking for a discount in insurance rates, you must check whether your husband or wife has a good track record. If your husband or wife has been accused of one or multiple road accident cases in the past, getting married and asking for a discount may backfire. So, only if your husband or wife has a good driving history should you ask your insurance agent for a discount. 

Getting A Divorce Or Widowhood

Just like marriage changes a lot in your life, so does a painful separation or widowhood. So, in case of an unfortunate life event like a divorce or widowhood, you must get all your paperwork done and consult your insurance agent. You must have the right papers to show that you have your partner’s consent to remove him or her from the insurance coverage (in case of a divorce). 


You should get different addresses for yourself and your husband or wife and have separate auto titles. Now, the new insurance rate after a divorce or separation may be revised upward or downward depending on factors like whether your spouse was a good or bad driver, etc.

Your Birthday

If you are a young driver who is just old enough to get a driver’s license, you are likely to pay a very high rate for insurance. Insurance companies presume that young drivers have less driving experience and are, hence, more likely to be involved in road accidents. 


Also, statistics show that people who are nineteen or twenty years old are three times more likely to be involved in a road accident than drivers who are thirty to thirty-five years old. So, if you are celebrating your thirty-fifth birthday anytime soon, make sure your insurance agent knows about it, and you may stand a chance to get a better deal on insurance premiums. 


Just like younger people are considered to be careless and inexperienced, older people are at a disadvantage when it comes to insurance premiums. People who are seventy years or older are not considered good drivers. With age, people have trembling hands, so they may not be able to handle the steering wheel very well. Also, older people have problems with their eyesight, and they may be hard of hearing. So, all these factors raise the insurance premium rates for older people. So, if you turned seventy last month, you may see a rise in your car insurance rates.

Switching Jobs

Changing jobs can be stressful. After all, you have to adjust to a new work environment, be friendly with new colleagues, and also impress your new bosses. However, changing your job may also impact the insurance premium you have to pay. For instance, if your new office is close to your house, you will have to drive for fewer hours. 


Insurance companies presume that when you spend more hours on the road or drive long distances, you are at a greater risk of getting into an accident. So, if your new office is closed, your resident has a word with your insurance agent, and your insurance premium rates may be revised downwards.

Final Words

In this blog post, you have seen how major events positively or negatively affect the insurance premium rate you are liable to pay. So when you get married, if you have children, or if you celebrate your thirty-fifth or seventy-fifth birthday, you must discuss it with your insurance agent. If you cross thirty-five years of age or get married and your spouse has a good credit rating, it will most likely positively impact your insurance premium rates.




When To Update Your Car Insurance: Life Events Checklist