Do You Need to Report a New Baby to Your Car Insurance Company?

Last Updated on April 24, 2020

If you are having a baby or recently had a baby, auto insurance is likely the last thing on your mind.  You are likely concerned with changing diapers, buying toys, researching pre-schools, and so on. However, you should jot down “contact the car insurance company” on your list of things to do.  Let’s take a quick look at why it is in your interest to report your new baby to your auto insurance provider.

Contact the Auto Insurance Company After Your Baby’s Birth

reporting new baby to car insuranceThough it is hard to believe, some auto insurance providers give new parents a discount solely for adding to the world’s population.  If you have recently added a new family member, it is in your interest to contact your auto insurance provider without delay. Ask the customer service representative if there is any discount available to new parents.  However, there is no guarantee the customer service representative will have all the facts at his or her disposal. Some such representatives are new to this line of work or were not provided with the proper training. Perform a quick online search of your auto insurance provider along with the words “baby discount” to double-check the answer provided by the customer service representative.

Why Discounts are Available to new Parents

The logic in reducing auto insurance premiums for those who reproduce is that those who have a child are that much more likely to drive safely.  The mere fact that the customer is now a parent is enough to alter his or her driving habits significantly. Even if the baby is not in the vehicle, the driver really is that much more likely to drive safely as he or she will be more risk-averse.

The bottom line is new parents are less likely to engage in risky behaviors simply because they have a baby to come home to or a baby in the vehicle.  As a result, auto insurance providers typically reduce the monthly insurance rates of new parents. After all, this business is centered on risk reduction.  However, some auto insurance companies do not provide any type of discount program for new parents.  It is certainly possible the addition of a little bundle of joy to your auto insurance policy will have no impact on your monthly premium whatsoever.

What if there is no Discount for new Parents?

If you find your auto insurance provider does not provide a discount at all for new parents, do not assume you will receive the same answer from other insurance providers.  There is a good chance you will be able to find at least one auto insurance company that provides a discount program to new parents. Get a quote from those with such discount programs, and you might procure a much more affordable auto insurance rate.

It might also make sense to hike your personal injury protection coverage while on the line with the customer service representative.  The nuances of your personal medical insurance plan along with myriad other factors, will ultimately determine the most prudent course of action.  The moral of this story is you should not be afraid to shop around, especially if you recently had a child. Get a few quotes from insurance companies, and you might find your monthly rate turns out to be surprisingly affordable.

New Parents Drive Less Than Childless Couples

If you were to poll new parents about their driving habits, most would report they drove significantly less after the birth of their baby.  New parents do not have much time available to drive around town, shop, eat out and check out the local sights. As a result, auto insurance providers are inclined to provide significant discounts to those who recently had a baby.  After all, those who drive at a reduced frequency are less likely to get into an accident. In the end, the arrival of a baby does change everything. Even if your auto insurance provider does not provide a specific discount as a result of your baby’s birth, it does not hurt to contact the insurer to explore other discounts.

As an example, some of those who reproduce gradually transition to a job they can perform while at home.  In fact, some new parents stop working altogether. If you shift to working from home or completely stop working, let your auto insurance provider know right away.  The reduction in driving frequency might be enough to lower your monthly auto insurance premium. Even if your mileage slightly declines due to the birth of your baby, it is worth reporting this alteration to your auto insurance provider right away.  A shorter commute to work or a general reduction in annual mileage really can result in considerable auto insurance savings. There is no harm in contacting the auto insurance company, reporting the birth of your baby and seeing what types of discounts you are now eligible for.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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