How having a baby can (surprisingly!) cut your car insurance rates

​Arguably, nothing can change your life as much as having a baby. The way you look at things suddenly gets filtered through your parent lens – that sleek sports car, for example, loses its luster the minute you try to stuff a stroller in the back. Like most major life changes, parenthood can affect your car insurance rates, too.

While simply becoming a parent won't cause your premiums to go up or down, the choices you make as a parent might. Those include:

Your marital status. If wedding bells are part of your family plan, you may see reduced insurance rates provided you and your spouse have similar driving records. That's because, statistically, marriage correlates with safer driving.

Your car. Parents typically prioritize safety, size and utility over style when it comes to their cars. And kid-friendly cars (think sedans, SUVs and minivans) generally are cheaper to insure than the cars (sporty or luxury models) singles tend to favor.

Your home. Welcoming a child often gets renters thinking about buying their first home. And many companies, including PEMCO, offer a car-insurance discount for homeowners since owning a home correlates with fewer driving claims.

Your commute. If you or your partner will be cutting back on work outside the home (reducing work days, working from home or pausing your career as a stay-at-home parent), you'll log fewer miles. If it's enough of a mileage reduction, you'll pay less.

Your overall mileage. Work aside, parents tend to put fewer miles on their cars, often trading road trips for closer-to-home outings to school and sports practice. Fewer annual miles can mean lower premiums.

Any potential rate change will depend on the specifics of your situation. For example, if you get rid of your 20-year-old two-door (for which you only carry liability insurance) and replace it with a brand-new SUV with full coverage, your rates will be higher. You'll also want to make sure your coverages keep up with your new lifestyle. That may mean increasing liability and optional coverages if you're currently carrying only the legal minimums.

Want to know more? Talk with a PEMCO representative or community agent to learn how a "baby on board" might translate to savings on board, too.