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Auto Insurance Considerations for Young Families


Having a child, of course, affects all of your insurance considerations. But focusing on the family car, here are some special concerns.

  • At this stage of your life, you begin to interact with other parents, perhaps driving their children in your car while carpooling. To protect yourself, you might want to consider increasing your liability insurance in case of an accident.

  • During this time you will likely be accumulating more assets, and therefore you might want to consider purchasing an umbrella policy that will better protect your financial resources in case of a law suit stemming from a car accident or an accident occurring in your home.

  • As your family is expanding, you might be thinking about purchasing a bigger car to fit additional family members. Since auto insurance premiums are linked to the type of vehicle driven, check the insurance rates before you make your final choice of a car. SUVs, convertibles and performance vehicles typically cost more to insure than some other vehicles.

  • And finally, if you haven’t yet merged policies held by separate spouses, now’s a good time to do it to control costs, as consolidation will potentially offer you a decreased rate in your premiums or enable you to acquire more insurance at the same level of spending.