Children can change everything, but parents already know that. When you become in charge of a tiny human life, you feel the weight of the world on your shoulders. But it’s more than just the extra responsibility that kids can bring that can make parents notice their life change. Kids can also be expensive! Saving a few dollars here and there can add up quickly, and your car insurance can be one place where you can have a few savings (and expenses) as your child grows. Here’s what you need to know about car insurance and your kids.
When your kids are babies and toddlers, safety comes first. Your car insurance pricing won’t increase as you become parents, but receiving any traffic infraction can make your rates go up. Be sure you are aware of Illinois car seat laws that have changed in 2019 so that you are keeping your child safe and avoiding any traffic ticket for disobeying them.
As your child approaches high school and legal driving age, your insurance rates are bound to increase with the introduction of a young (and possibly risky) driver. Talk to your insurance agent to see if your child warrants any potential discounts to take the edge off your new rates. Some companies offer Good Student discounts for kids with a certain grade point average, while others could offer a discounted rate for kids who take driver safety classes. It is worth it to have the conversation to see if there are hidden discounts you could take advantage of.
Off to College
As your child grows and moves out of the home, you may be able to take advantage of those miles between you. Some insurance companies offer significant discounts for kids who are away at college and not driving consistently. If your child doesn’t take a car to school, even if it is just for the first few years, you may be able to decrease your payments to compensate for this time away.
On Their Own
Finally, your child will be able to transition to their own insurance and take on that responsibility. There are no specific guidelines for when this transition should happen. Some families choose to transition after college or trade school graduation, while other families transition earlier if the child lives in a state where rates are lower. Talk to your child and to your insurance agent to see which could be the best financial option for everyone.
Here’s to parenting – the wild, perfect, and stressful journey it is!