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Much like being married, having kids is one of those family status changes that has the potential to affect your car insurance rate. In some situations, you might find that having kids is helping you save on auto insurance, and in others, it might be costing you more.

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Here are some of the ways children can impact your car insurance rate for better or worse.

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No more work commute could mean cheaper insurance

Especially in the first year after a baby’s arrival, new parents might be driving less if they’re on parental leave and no longer commuting to work. This means less exposure to risk, as well as less opportunity for a collision, so insurance companies should lower your rate if you let them know you’re driving fewer kilometers annually.

During this time, most trips are short — to the doctor or parent-and-baby play groups — and not long-distance road trips. If one parent is staying home with baby for a year or longer leave, that’s one half of your household’s commute eliminated.

However, you might find as you return to work and your kids get older that you’re driving more kilometers — to soccer practices, school, dance competitions, etc. This could cause your rate to creep back up. Be upfront with your insurance company so your policy accurately reflects how many kilometers you’re driving annually.