How Major Life Events Like Marriage and Retirement Affect the Price of Car Insurance

Does marriage affect insurance? Marriage and retirement are both major life events that can significantly affect the price of your car insurance. Getting married will lead to lower car insurance rates because married drivers are statistically less likely to get into an accident than unmarried drivers. Married couples can also bundle their insurance policies together.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Nov 12, 2020

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Getting married and retiring are called “major life events” for a reason: they change your life in a significant way. Many drivers are surprised to discover, however, that marriage, retirement, and other major life events can significantly affect the price of car insurance.

It’s true! Getting married, retiring, getting a new job, and other major life events can all affect the price you pay for car insurance. Today, we’re explaining how major life events like marriage and retirement affect the price of car insurance.

Getting Married Will Lower Car Insurance Rates

Getting married can lead to lower car insurance rates for two reasons.

First, married drivers are statistically less likely to get involved in an accident than unmarried drivers. This statistic is particularly significant for younger drivers: a married 20-year old male is a significantly lower risk than an unmarried 20-year old male. This difference between married and unmarried drivers, however, can disappear as you get older.

The second reason married drivers pay less than single drivers is because you can bundle your car insurance policies together. If you haven’t already done so, you can bundle your policies together to save money. Obviously, you don’t have to be married to do this: many couples bundle car insurance policies together as soon as they’re living under the same roof.

Ultimately, you can expect to pay less for car insurance after you get married – especially if you’re in your 20s.

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Buying a Home Can Lower Car Insurance Prices

Buying a home is one of the major milestones in life. It’s also an event that can lead to lower car insurance prices.

You can save money when buying a home by bundling homeowner’s insurance with car insurance.

Additionally, statistics show that homeowners tend to get into fewer accidents than those who don’t own property. They tend to be more economically stable, which makes them less of a risk to insure (although not all insurance companies take this into account).

Car Insurance Prices Will Rise When Your Teenager Gets Added to your Policy

Watching your teenager drive away alone for the first time is a life changing moment. It’s also a moment that will significantly raise car insurance prices.

Adding a teen driver to your policy will significantly raise car insurance premiums. Teenage drivers are some of the riskiest drivers to insure. Some policies may double in price after adding a teen driver to your plan.

Keep in mind that you don’t need to add a teen driver to your car insurance policy as long as he or she has a learner’s permit. Once the teen driver gets a full license, however, you’ll need to upgrade your car insurance policy to stay legal and covered.

Getting a Divorce Can Raise or Lower Insurance Prices

If you’re getting a divorce, then you can expect significant changes in your car insurance policy. You may need to split a bundled policy into multiple policies, for example. If you’re sharing custody of a teenager, then you may need to list your teen on one policy or both policies.

Ultimately, divorces can be costly. Sometimes, you’ll pay higher car insurance prices after a divorce, while in other cases, you’ll pay lower rates. In any case, divorce is a good opportunity to compare quotes.

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Moving to a New City or State Can Raise or Lower Insurance Premiums

So you’re moving to a new state or city. Any time you change addresses – even within the same city – there’s a chance your car insurance prices will change significantly. Different states in America have vastly different insurance laws. Prices vary widely: drivers in the most expensive states pay three times as much as drivers in the least expensive states, on average.

Moving to a new city or state is a great time to compare car insurance premiums. You’ll need to change your policy anyway to adjust to your new state’s laws – so why not compare insurance prices while you’re at it?

Getting a Pay Raise May Encourage You to Get Higher Coverage

If you get a pay raise at work, or if you inherit assets like a house, then you may wish to increase your car insurance policy.

Consider upgrading some of your coverage limits – like your bodily injury and property damage liability limits. The lowest legal limits for these policies can be just $10,000 to $30,000 in some states – which isn’t much money if you get involved in a serious accident.

If the other person decides to sue, then your assets may be seized once the losses exceed your coverage limits. Consider upping your coverage limits if you want to protect your assets.

Having a Baby Can Encourage Safer Driving Habits

Parents with babies tend to drive more safely than adults without kids. This can lead to lower accident rates. Most car insurance companies won’t cut you a discount for having a baby. However, they may give you a discount for upgrading to a safer car – like an SUV with a high crash safety rating.

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Moving in with a Partner can Lead to Lower Insurance Prices

If you’ve moved in with a partner, then you can bundle your car insurance policies together to save money. In fact, you can bundle your homeowner’s insurance, renter’s insurance, and other policies together to save even more money. Instead of having two insurance policies for two cars and two households, you can bundle everything under a single policy.

Retiring Can Lead to Lower Insurance Prices

People who work an ordinary 9-5 job with a long commute are some of the highest risk drivers on the road. These drivers drive on busy roads at rush hour twice a day. The more miles you put on your vehicle, the more likely you are to get involved in a collision.

That’s why you can get a sharp insurance discount when you retire. You may qualify for usage-based insurance or low mileage discounts. Talk to your insurance company or compare quotes after you retire to make sure you’re getting a good deal.

Conclusion: Compare Quotes After Any Major Life Event

There’s never really a bad time to compare car insurance quotes. However, it’s a particularly good idea to compare quotes after a major life event – getting married, having a baby, and getting a new job can significantly alter your car insurance premiums.

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