Life Events That Require a Car Insurance Update

By the Mercury Team

From walking down the aisle to relocating out of state, life is full of big moments that bring exciting changes. But while you’re busy planning your next chapter, it’s easy to overlook one important detail: updating your auto insurance. In this blog, we’ll go over some life events that can affect your car insurance and why you should take the time to update your policy.

Buying or Selling a Vehicle

Whether you’re driving off the lot in a shiny new car or finally saying goodbye to an old one, buying or selling a vehicle is the perfect time to update your car insurance policy. Why? Because changes to the cars on your policy directly affect your premiums, coverage needs, and overall protection.

For example, if you buy a car and it’s not added to your policy yet, you might not be covered if there’s an accident. On the other hand, keeping a sold car on your policy means you’re paying for something you don’t even own anymore.

As soon as you buy or sell a car, take a few minutes to call your insurance company. Your insurer can help you figure out the right level of coverage for your new car—especially if it’s a newer model or you’re financing it. If you’re selling a car, your insurer can remove it from your policy to avoid unnecessary costs. However, make sure the sale is finalized first just in case something unexpected happens during the selling process.

Moving to a New Address

Moving to a new address can be an exciting, fresh start, but it can also have a big impact on your insurance rates and coverage needs. Let’s say you’re moving from a suburban neighborhood to the heart of a big city. Your premiums could increase to reflect the higher risk of accidents or theft. On the flip side, if you’re heading to a quieter town with less traffic, you might see a drop in your rates.

Moving out of state? Each state has its own car insurance requirements, and what worked in your old state might not cut it in your new one. For example, minimum liability limits can vary, and some states require additional coverage like personal injury protection (PIP).

Whether you’re moving to the next town over or across the country, you need to update your policy to make sure you’re fully covered and compliant with local laws.

Adding or Removing a Driver

From teenagers to spouses, many drivers can be on your auto insurance policy, and each addition or removal can impact your coverage and premiums in different ways.

If you’re adding a teenager to your policy, it’s a big milestone, but it can also lead to higher premiums. Teens are considered at higher risk due to their inexperience behind the wheel. While these increased premiums are normal, they usually go down once your teen gains experience and maintains a clean driving record.

What about your spouse or roommate? Combining policies can be a great way to save money. Many insurers offer multi-driver or multi-car auto insurance discounts when you share a policy. Plus, if your spouse or roommate has a clean driving record, it could even help lower your overall premium.

If someone in your household no longer drives your car—like a child who’s moved away, a roommate who’s left, or a spouse after a separation—you can remove them from your policy to lower your costs.

Whatever your situation, keep your policy updated to ensure everyone behind the wheel is covered and you’re not paying more than you need to.

Marriage or Divorce

Marriage is a great opportunity to save on car insurance. Most insurers offer multi-policy discounts when you and your spouse combine your coverage into one plan. It also simplifies your insurance coverage since you only have to pay and manage one policy. Plus, if you’re buying a home together, you can bundle your homeowners and auto insurance to unlock even bigger savings.

On the other hand, a divorce or separation means it’s time to untangle your insurance policies. For one, make sure the car titles and insurance policies match who owns and drives each vehicle. Also, let your insurer know about any address changes since moving to a new area can impact your rates. If your financial situation has changed, review your policy to ensure you have the right level of protection for your needs.

Retirement or Job Changes

Retirement often means saying goodbye to the daily grind—and those long commutes. If you’re driving much less now that you’re retired, you might qualify for low-mileage discounts or policies tailored for drivers who spend less time on the road. Fewer miles mean less risk of accidents, and insurers may reward you with cheap auto insurance premiums.

If you’re still working but recently switched jobs, let your insurer know because your new commute could impact your rates. If your commute is shorter or you’re now working from home, you may qualify for a low-mileage discount. On the flip side, a longer drive could increase your rates since you’re spending more time on the road.

Major Financial Changes

Big financial milestones—like buying a home or finally paying off your car loan—are worth celebrating, but taking a few minutes to update your policy can help you save money and make sure your coverage fits your new situation. For instance, as a new homeowner, consider bundling your home and auto insurance together to help lower premiums for both of your policies.

If you just paid off your car loan, it’s a good idea to revisit your car insurance. When you finance or lease a car, lenders usually require you to carry full coverage, which includes collision and comprehensive insurance. Once you own the car outright, you have the freedom to adjust your coverage. For example, if your car is older and not worth much, you might decide to drop comprehensive or collision coverage to save on premiums. If you want to maintain full protection, you can still shop around to ensure you’re getting the best rate.

Conclusion

You might wonder: Can you change your car insurance policy at any time? The answer is yes—and you should whenever you experience a major life event. Delaying these updates can lead to unexpected financial risks. For example, buying a new car without adding it to your policy could leave you without coverage if there’s an accident. Similarly, forgetting to update your address after a move might result in inaccurate premiums or even denied claims. Ultimately, updating your car insurance after major life events means you can avoid gaps in coverage, uncover new savings, and rest easy knowing you’re properly protected.

Need help? Contact your Mercury Insurance agent today. They’ll guide you through any updates, answer your questions, and help you make sure your policy works for your current situation.

Contact us today for a fast, free quote!