The premium that you pay for insurance depends on many factors. As you experience changes in your life, you may forget to update your insurance information. Some changes may require you to purchase more insurance coverage while other changes may reduce our insurance rates. Contact your insurance company if you experience any of these life changes that may affect insurance rates.
Believe it or not, marital status can affect your insurance rate. Many insurance companies offer lower auto insurance rates for married persons. People who are married are seen as more mature and more cautious about their driving (given the added responsibility of a spouse and kids). Once married, you may want to purchase additional policies or higher coverage for other types of insurance, such as life insurance.
Getting a Dog
Here’s one that is mostly forgotten. When you get a pet, such as a dog, it is important to notify your insurance provider. If someone visiting your home is bitten by your dog, your homeowners insurance may deny coverage if they were not notified that you even had a dog. That would be a costly mistake as you would be personally liable for any resulting damages. Certain breeds of dogs, that are known to be aggressive, are more likely to result in higher insurance premiums.
Improving Your Credit Scores
Credit scores are a factor when it comes to certain types of insurance. Slight changes in your credit may not make much of a difference. However, if you’ve gone through a dramatic improvement in your credit standing, it may be worthwhile to have your insurance rates checked.
Moving to a New Home
Auto insurance is highly dependent upon your location, so moving to a new home will affect your auto premiums. Your rates could either go up or down depending on where you are moving from and to. Auto theft and accident rates usually influence the rates. So, if you are moving from a rural area to a city, you are likely to see an increase, and vice versa.
Renovating Your Home
Renovations are a great way to add value to your home. That added value, however, means that you will need more insurance coverage. Your homeowners insurance is calculated based on the replacement value of your home. If you complete a renovation but fail to increase your insurance coverage, then you become underinsured. Should you have a major fire or other catastrophic event, your insurance proceeds may not be enough to restore your home with those added features.
Other Life Changes That May Affect Insurance Rates
Above are just a few examples of life changes that may affect insurance rates. There are other events that may result in a change in insurance rates. Contact your insurance company to find out if your particular life event is one of them.