Does Getting Married Help You Save on Car Insurance?
After all the budgeting for a wedding, auto insurance is probably the last thing on your mind, however there’s good news! If you and your partner choose to share a policy, you may qualify for multi-driver or infrequent driver discounts to get you the cheapest auto insurance.
In the world of auto insurance, safer driving and responsible choices equate to lower premiums and cheap auto insurance. The statistics clearly point out that married couples have fewer accidents and injuries than single people. Though the reasons are unclear, most auto insurance companies offer discounts to married couples – whether it is due to less hours driving, reduced time driving alone, or less likelihood of endangering one’s self or when your loved one is in the car.
Often, as couples get married, many things get joined: bank accounts, living arrangements, DVD collections, and many also decide to combine auto insurance policies. In general, this is a good idea, however there are a couple things to consider before doing so.
If both individuals have good driving records, no gaps in coverage, and safe vehicles, then joining auto insurance policies is a solid win! This also applies for same-sex marriages under Allstate and State Farm. Even if you’re not married, if you have a domestic partnership, insuring multiple vehicles under the same policy will normally yield multi-driver or multi-car discounts. However, proceed with caution if one of you has a bad driving record or is considered a “high-risk driver,” because if there has been a recent traffic violation or accident, then it will negatively affect the entire policy, and therefore, the premium. You may still save by joining your policies rather than keeping separate ones, so at this point, it may be a good idea to contact an car insurance specialist to get a quote.
Even if you choose to keep policies separate, if your spouse racks up multiple traffic/moving violations or claims, it may still affect your auto insurance policy. If the insurance company assesses the overall risk in your household and they find that you live with a high-risk driver, then by association you’ll be considered riskier, since there’s a chance that your spouse may drive your car. If you want to avoid an increase in your separate policy, then you may want to consider adding a driver exclusion, which will not cover your spouse if an incident were to occur (however, this means you’re liable for all damages and costs).
In the case of divorce, if you and your spouse shared a policy, you would not only lose the multi-driver/multi-policy discount on your auto insurance, you may also see an increase due to change of address, increased commute, and changes in coverage. In any case, where there are big life changes or events, you may want to consult with your insurance specialist for suggestions and options for the low-cost auto insurance for your particular situation.
After fully disclosing and reviewing your individual policies and driving histories with your partner or soon-to-be spouse, you’ll be ready to make the decision about whether you two will take the plunge and join auto insurance forces. Even if you find that it makes more sense in keeping your policies separate, it’s always good to have the assurance that you’re getting the best auto insurance for the both of you, and to know what you’re heading into, eyes wide open!
Do you think married people should pay less? Feel free to share your thoughts in the comment section below.