February 11th, 2015
The beauty about life is you never know what to expect next. Something new could pop up in your life that might have you reconsidering your personal finances. Major events in life such as getting a new job or car are exciting events, but it's always important to take a step back from the exhilaration and strategize your best plan of action.
Here are five life-changing things that should make you reevaluate your insurance:
If wedding bells are ringing in your near future, you have some major questions to ask your spouse about your upcoming insurance plans. One of the first things you should consider is your car insurance because bundling multiple vehicles together on a policy as a married couple could save you money.
In fact, several car insurance companies have driver bundle deals, which get cheaper by adding other cars or a spouse to the equation. Your best bet is to research which auto insurance rate will be the most affordable and provides the best savings and coverage.
2. Having a baby
Whether you're expecting a child or have decided to adopt, it's essential to reevaluate your insurance after this major milestone. According to a U.S. Department of Agriculture report, children born in 2012 into middle-income families can cost more than $240,000 in expenditures over a 17-year period. To ensure you're saving the most money for your child, make sure your baby is added to your health insurance policy.
Also, you should think about your home insurance plan to see if there are any discounts for adding childproof safety items or additional fire extinguishers in your home.
One of the biggest life changes you might experience is moving into your first home or apartment. No matter how old you are, this is an important step in your life. For those who are getting their first apartment on their own, you may want to consider if your auto insurance plan covers renters insurance.
By bundling both auto and renters insurance together, you could get additional savings on protecting both items in your home and your car. However, if you're getting your first home, you may want to shop around a bit more to find the best homeowners insurance available. Again, bundling these policies will help you save, but it's best to do plenty of investigative work before you make a decision on which insurer you want for your home.
4. Major income change
Getting your first big-paying job can be one of the most influential times of your life as you truly prepare your career path. At the same time, more money usually results in additional things to cover. According to the Insurance Information Institute, greater financial commitments mean you should be ready to protect these new items.
Most people that receive a large income boost decide to move or buy a new car, which you have to be ready to cover. Also, once your pay increases, you should consider what insurance limits you can raise to further protect yourself or your family. A higher paying job always brings on a plethora of new questions about insurance and this could be especially true if you decide to purchase a car for your teen with your new income. Adding a teen can be a challenge on its own with your auto insurance, but it's important to check for the best rates with your new addition.
If you've made the decision to start over in your love life, you'll want to consider certain insurance policies in the process. After a divorce, you will likely be in a much different financial position and you might not need as much coverage as you originally planned with a spouse, the Credit Union National Association reported.
Divorce also tends to be a time where you reevaluate your finances to get everything into order and back into your name. This could be a great opportunity to bundle your auto insurance with renters or home insurance whether you move out or keep the home. Divorce may not be pretty, but getting ahead on your insurance and saving money is certainly the right move.
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