Does having a baby reduce car insurance?

Being a parent isn't a rating factor for auto insurance companies, so having a baby won't change your rates, However, getting a new vehicle will affect your rates.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 21, 2021

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Here's what you need to know...

  • When you reach a new stage of your life, it’s important to review your insurance portfolio to see if you need more protection
  • When you have a baby, you may require a new vehicle. If you purchase a new vehicle with a better safety rating through the Insurance Institute for Highway Safety, you may be able to lower your auto insurance premiums
  • Having a baby without making any other changes to your policy won’t affect your insurance rates
  • Being a parent isn’t considered a rating factor, but there are several rating factors that can increase or decrease the price that you pay for insurance

When you find out that you’re about to be a parent, nine months doesn’t seem like enough time to prepare. Not only do you have to worry about buying all of the baby essentials that you need to rear a newborn, you also have to learn everything that you can about caring for your baby once you leave the hospital.

After you check items off of your to-do list and you get used to having a newborn in your home, you need to make time to sit down and review your auto insurance portfolio.

Failing to do this can put your finances at risk during a time where they are more important than ever. If you are curious to learn how having a baby can affect your car insurance policy and rates, here’s what you should know.

Start comparison shopping today to make sure you have enough coverage to protect every member of your family. Enter your zip code in our FREE tool to get started!

Does becoming a parent increase or decrease your insurance rates?

A number of different factors have an effect on your personal car insurance rates. When you were a single driver, you might have paid more for coverage than you do now that you’re married.

Your rates also tend to go down as you gain driving experience. These factors might bring rates down, but having your first baby won’t have an immediate impact on your rates.

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What rating factors help determine your auto insurance pricing?

Parenthood might not be used as a determinant for calculating your premiums, but there are several other factors that carriers use that help to customize your rates. Some of these factors can change after major life events like having a baby.

Familiarizing yourself with rating factors is important so that you know when you should contact your insurer to update your policy. If anything changes that could affect your rates, it’s your duty under your insurance contract to contact your insurer.

Here are some rating factors that are used to assign risk classes and determine rates:

  • Driving experience, age, gender, and marital status
  • Credit-based insurance score
  • Homeowner status
  • Driving habits, vehicle usage, and annual mileage
  • Occupation or affiliation to professional organizations
  • Driving record
  • Accident and claims history
  • Vehicle type, safety record, and cost to repair
  • Rating territory and garaging territory
  • Prior insurance experience
  • Coverage limits and coverage options

Which rating factors change after you have a baby?

Welcoming a baby to your home can change your life in so many ways. This is why your rates could be impacted indirectly after you finally become a parent. If you experience any of these changes, you should contact your agent immediately:

  • You move to a new area and your car is stored in a new zip code
  • You go from being a renter to a homeowner
  • You start to work from home
  • You change occupations and your commute changes
  • You add new safety features to your car
  • You trade in an old car for a safer and more family-friendly model
  • You no longer commute in your vehicle

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Should you raise your coverage limits when you have a baby?

Just because your rates won’t automatically change when you have a baby doesn’t mean that you shouldn’t consider reviewing your auto insurance limits and expanding your coverage options.

Having a baby can cost a small fortune and you need to make sure that you have the money to pay for all of the expenses that you take on after your little one reaches each milestone.

If you have bare minimum coverage limits, it’s strongly recommended that you raise your liability limits for adequate financial protection. It’s even more important to raise those limits when you own a house or you have other assets that a claimant could come after. Most insurance experts recommend that vehicle owners carry at least:

  • $100,000 per person, and $300,000 per accident in Bodily Injury Liability
  • $100,000 per accident in Property Damage Liability

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Are there additional coverage options to consider?

If you don’t already have a comprehensive insurance policy, you should consider adding some additional forms of coverage to your insurance.

Having strictly liability coverage puts you at risk with or without children, but the impact of an accident will be much greater when you have children to take care of. Here are some options to consider:

  • Uninsured Motorist Protection – Pays for your medical expenses when someone hits you who doesn’t have insurance or who has low limits of liability
  • Medical Payments Coverage – Pays for your medical bills when you are injured in an auto-related accident regardless of who’s at fault
  • Rental Car Reimbursement – Pays for a rental car when you have a covered loss and need a temporary substitute

Having a Baby Can Affect Rates Later

Your little newborn will grow into an adolescent much faster than you expect. When your baby is finally a teen, having a child will affect your rates when they are licensed. It seems like a long way away, but time flies when you’re a parent.

If you’re reviewing your insurance portfolio and you are not happy with your rates, it’s time to start shopping around. You should look to see if you can drive your rates down so that you can lower your expenses before you take on new ones.

Use our FREE online rate comparison tool and get instant quotes right away. Just enter your zip code to get started!

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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