Baby On Board: How It Affects Car Insurance

Having a baby is one of the biggest moments in a person's life and can bring about a lot of necessary changes. In all the joy and excitement, most car owners probably don't think about how a baby can affect their car insurance. However, this life-altering change will have an impact on insurance. Luckily, it will probably not cause premiums to go up.‍

Safe drivers‍

When adults have children, they often upgrade to a larger or safer vehicle. Gone are the days when a bachelor's Mustang or mommy's convertible were not only cool, but sensible. With a baby, parents will often need to switch up their ride for one that can accommodate a little one and all they come with - like diaper bags, toys, strollers and car seats. Later in life these might change into carpools for soccer practice or bringing friends home from school. Whatever adjustments happen in the home after bringing in a baby extend into the family vehicle as well. A new car can have one of the biggest impacts on the cost of insurance, as a car's crashworthiness is likely to be better in newer models. This is also true for larger vehicles.

As a result of having a baby on board or possibly owning a safer car, parents tend to drive more responsibly than people without kids. In turn, drivers who are deemed more responsible by insurance companies tend to have lower auto insurance premiums. Similarly, married couples may pay less for coverage than single people, as they are considered to be less-risky drivers.‍

Parents pay less‍

There are a few reasons parents may pay less for their insurance coverage. For one, parents - especially those with a newborn - usually have much less free time on their hands. This means they will probably end up driving less and reduce their risk of getting into an accident and filing a claim.

While not all parents are homeowners, many who are starting a family own property, which can qualify them for a discount. Or, homeowners who have more than one policy with the same company could have lower premiums. In addition, the combination of driving safer and possibly owning a newer vehicle as a result of a child can result in lower premiums.

They say "a baby changes everything," and this idea needs to be considered when looking at car insurance. With any family changes, car owners should assess their insurance coverage to ensure that everyone is safe at an affordable rate.