Life events that can affect insurance premiums

Recently married, widowed or divorced? Switched jobs and no longer have to drive as far to get to work? Have a child who is about to turn 16 and start driving? These are just some of the life events that can dramatically impact the rates you pay for insurance.

In fact, any time you experience a major life change, it's advisable to take a step back and analyze your needs. Here's a look at how some of the most common life changes can impact you:

* Getting married

One of the first things a couple could do after tying-the-knot is make some changes in how they handle their insurance needs. After the honeymoon may be an ideal time to cancel individual policies and initiate new ones as a married couple.

You may experience significant savings by insuring your home as a married couple and by having two drivers on one auto insurance policy.

* Getting divorced

Divorce can also affect the price you pay for car insurance. If you split, you and your former spouse will both need to get your own auto insurance policies. Depending on your circumstances, you may need more or less coverage. The parent who has custody of a teen driver, for example, may need to pay more.

* Switching jobs

Another life change that can greatly impact auto insurance premiums is switching jobs. If your new job is significantly closer to home, update your policy to reflect a drop in the number of miles you'll be driving every day. The move could lower your premiums.

* Have a new driver in the household?

When your child turns 16 and is ready to begin driving, you will need to add them to your policy. Check with your insurance provider to see if discounts may be available. Allstate, for example, offers a good student discount.

Courtesy of ARAcontent