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How to score car insurance savings from the ups and downs of life
If your life takes a turn for the worse, there may be a bright side. In some cases, you can find it in your car insurance bill. Even unhappy life changes, like getting a divorce or losing your job, can save you money on your auto insurance. Of course, positive life changes can save you money, too.
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Here are examples of life changes that could result in insurance savings.
You've been laid off or changed jobs.
Any reduction in your daily commute is an opportunity for savings — including insurance, gas and car maintenance. If you're driving your car less, ask your insurance agent if it changes your premium. Not all car insurance companies will cut you a break, but it's worth asking about it. Peter Moraga, spokesperson for the Insurance Information Network of California, says that some insurers will give you a discount if you drive less than 5,000 miles per year. Others may go as high as 10,000 miles per year.
You got hitched.
This discount is most significant for young married drivers. According to State Farm, the nation's largest auto insurer, men and women under age 25 will generally see a noticeable drop in car insurance rates if they get married. For example, a 23-year-old male living in Indianapolis (with a clean driving record) can expect to see a 26 percent drop in premium if he marries. Plus, if you and your spouse both drive your own car, you are likely to get a "multicar" discount if you both use the same insurance company. Being married can save you money on insurance in many ways.
You've kicked your no-good spouse to the curb.
If your high-premium hubby with a terrible driving record is no longer using your car, removing him from your policy will save you money. If you both had a good driving record, it may not make too much of a difference, but you should notify your insurance company anyway.
You bought a boring minivan.
Good thinking! Minivans are among the least expensive vehicles to insure. Low rates tend to reflect a vehicle's loss history, so SUVs and minivans dominate the least-expensive to insure list. Sports cars are always at the top of the list of vehicles that are most expensive to insure. So if you've traded in your Nissan GT-R for a Dodge Grand Caravan, you can save hundreds of dollars on your annual auto insurance premium.
Your teen has gone off to college.
Yes, you'll miss her, but think of all the money you'll save! Let your car insurance agent know that your teen now has limited or no access to your car because teens are very expensive to insure. "That will save you a lot of money," Moraga says. "It can be as much as 40 percent [on your premium], but I think the average is 25 percent. It varies and depends on the insurance company and your teen's driving record."
You stopped smoking.
If you've recently quit smoking, make sure to tell your agent. Many companies offer home insurance discounts to nonsmokers (smoking causes house fires), and some insurers offer those discounts on car insurance, too. "Some companies will give you a discount if you stop smoking because it's a [driving] distraction," Moraga says. A distracted driver is more likely to get into a car accident. The cost savings may come as a nonsmoker discount or included as a part of a safe-driver discount.
You've grown older.
Drivers age 16 to 24 are the highest-risk drivers in the nation, and insurance companies charge accordingly. You can expect a significant decrease in your auto insurance costs around age 25, and a continued decline until you get into your 60s.
You've retired.
Reap the savings of retirement: If you're no longer commuting to work, make sure to tell your insurer so it can adjust your premiums accordingly.
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