Does Having a Baby Lower Car Insurance Rates?

by Bianca Garrison - March 4, 2020
Mom holding newborn baby close

Congratulations! That tiny little dot on your ultrasound will soon turn into an adorable bundle of joy. There’s so much to do, and nine months may not feel like enough time to properly prepare. Take your time, make a checklist and enjoy the journey. One of the questions many expecting parents may ask is, will having a baby lower my car insurance rates? Does having children lower my car insurance premium? You may be surprised by the answer, read on to learn more.

The Driving Behaviors of New Parents

Some people will see a decrease in their car insurance premiums after a baby is born because statistically, parents are more careful after their baby is born. They tend to make safer driving decisions to protect their infant, such as driving the speed limit, using hand-free devices, and wearing seat belts. 

Having a baby often comes after two other major life events that can reduce car insurance premiums such as marriage and buying a house. 

New parents often buy vehicles with high highway safety ratings and features, which can help lower car insurance premiums. Even with safer vehicles, some parents don’t drive as frequently as they did when they were single. Social outings may be significantly reduced, and the only driving some parents do is back and forth to doctor appointments, daycare, school, or playdates. All of these factors can make you a lower risk for insurance companies.

What Car Insurance Coverage Should I Have After I Have a Baby?

If you have the minimum coverage limits, it’s strongly recommended that you raise your liability limits to protect your growing family adequately. Any damage you cause that surpasses your car insurance limits will be your responsibility. Of course, you can never predict how much a car accident will cost, but you should increase beyond what is legally required, but only to an amount that you can reasonably afford. 

When you reach a new stage of your life, it’s essential to review your insurance portfolio to see if you need more protection. 

Factors That Affect Car Insurance Premiums

There are several factors that car insurance companies use to calculate car insurance premiums, including:

  • Level of education
  • Marital status
  • Geographical Location
  • Driving history
  • Gender
  • Age

So while having a baby is not a factor that insurance companies use to determine car insurance premiums, some of the behaviors surrounding the birth of a baby can, in fact, reduce your car premiums. 

Affordable Car Insurance for Parents

Bluefire Insurance can help you find the car insurance coverage that works best for you and your family. Bluefire can compare quotes from the top insurance carriers in just a few minutes. 

If you have a new baby, or have experienced any other significant life changes, and would like a free car insurance quote, call your local Bluefire agent today at 866-424-9511.

Customer Service866-424-9511