Marriage is certainly a big step and affects nearly all aspects of your life. Your living arrangements, taxes, finances and auto insurance are some of those things that change for the better in most cases. Now that you have another person to care about in your life and maybe looking forward to being a family you would probably be more careful with your spending. Below you will hopefully find enough tips to help you save money on car insurance.
How Much Do Car Insurance Married vs Single Rates Differ?
Statistically, married motorists have fewer vehicle accidents in comparison with unmarried drivers. They are more responsible behind the stirring wheel as they have someone else or a family depend on them now. Safer driving and lower chance of accidents translate into better rates for couples in the comparison of car insurance married vs single. Most companies offer as much as twenty percent lower premiums for married people as opposed to single drivers. If you have recently married you should contact your insurer and discuss possible discounts they can offer you.
How Much Do You Save on Auto Insurance for Married Couples?
Combine Auto Insurance Policies and Save Large. Most auto insurance companies offer good savings when two policies are joined together. The actual savings will depend on how you combine your policies. You probably get the largest discounts when you buy all your cars under one policy. Otherwise, you may be able to get discounts for buying two separate policies but from the same insurer. By the way, many companies recognize Domestic Partners and offer them the same discounts as married couples. If you and your partner have good driving records and insurance history you probably save large by getting a multi-car policy for your cars.
If you have different insurers you should take your time and choose either one of them to join policies together or get new quotes to see who else offer great rates. You can get further savings by combining home and auto insurance. Even if only one of you owns the house the other one can probably get the same discount offered for home ownership as part of family auto insurance arrangements. You should keep this in mind for maximum discounts.
When It May Be Better to Keep Separate Car Insurance for Married Couples
Merging policies with your partner make sense in many cases. However, there are circumstances in which it may be beneficial to keep them separate. Nobody is perfect and your partner may have a chequered driving history and some claims on his/her name. Then, it is possible that bad driver’s records will increase the rates for everybody living in the same household.
In such case, you need to get several quotes in different ways and see your options. For example, the rates can be different when the good driver is the policyholder and bad driver is the listed driver on the policy compared to the other way around. There is a chance your overall automobile insurance costs can still be lower if you join the policies. However you need to see if there is a point in light of possible other claims and traffic violation tickets accumulated along the way by the bad driver in a relationship.
Why Would A Bad Driver Increase Car Insurance for Married Couples?
Auto insurance companies always consider the likelihood of a bad driver driving any of the cars owned by people living in the same house. The person does not have to be related to the policyholders to affect their insurance rates. For example, your college roommate can affect your insurance rates. Depending on the driving and claims histories this could be a serious problem.
For example, you have a sports car and reasonable rates for it. If you move in with a driver who has DUI on his/her records you may find it harder to find insurance, let alone seeing large increases on your rates. This is mainly because automobile insurance companies assume that drivers who live in the same house have natural access to each other’s vehicles. It is normal for anyone in the family to pick a car key and drive it. Families share many things and cars are no exception. This makes any driver in the house as good as listed driver regardless of them being listed or not. When they have such clear access to a vehicle they cannot be considered as occasional drivers.
Excluding Your Spouse from Your Auto Insurance Policy
This option may be available depending on where you live and which vehicle insurer you are with. You may not be allowed to exclude your partner in some states and with some companies. Also, it would probably be necessary for your partner to have his/her own car and insurance policy before you could consider excluding the driver.
If it is available, a driver exclusion clause will let you ban your partner from your policy. When this happens you must ban him/her from driving your automobile as well because he/she would be uninsured driver with no coverage under your policy. Insurance goes with the car, not with the driver. Even someone has own policy, the auto owner’s policy is the one that must insure the driver driving that particular vehicle.
Keeping Separate Policies from Financial Responsibility Point of View
When you have a joint policy you both are together or separately responsible for any liabilities claims. For example, if one of the spouses have an accident and there aren’t sufficient liabilities insurance to cover the injuries caused to third parties, they can sue either insured in a joint policy for the damages. This could be a reason to keep separate policies as well especially when one of the partners is much better off than the other.
Even you keep your policies separate you may still save some money if you both buy the coverage from the same company. You can also save further if you insure your home with that company too.
Tying the Knot or not on Auto Insurance
Unfortunately, there isn’t one answer that fits everyone. You may want to talk to a broker if you are confused. Consider your circumstances carefully and make a decision that best suits you.