If you have an insurable interest you can buy joint auto insurance policies with anyone you like regardless of them living with you or not. For example, you can purchase joint car insurance for unmarried couples. However, there are a few points to consider before making such decisions as discussed below.
Buying an auto insurance policy jointly with another person would have benefits and responsibilities. To start with you would both be responsible for the payment of the premium like getting any loan jointly. Some families or partners like to own and insure everything on their joint names. This may work out cheaper, especially when you buy a multi-car policy.
Nonetheless, there can be downside to these strategies when one of the drivers is prone to accidents. The whole package can cost a lot more than buying them separately.
Married or cohabiting people are normally considered lower risk for auto insurers. They commit to each other and likely to have or start a family that they are expected to avoid risky behaviours for the sake of their family. Most companies offer joint policies for those people at lower costs. Some companies can offer discounts for just being married and/or bringing your partners policy to them.
You can probably get a cheap joint car insurance policy when all the drivers involved are careful and stay out of trouble. Furthermore, it can work well for families who take responsibility for all the bills together. When partners still like to keep their own affairs it may cause arguments. Equally, when one driver is prone to accidents he/she can keep driving up the costs for everyone else. These problems can exist at the start or can come out once one of the joint drivers cause an accident.
When May Separate Auto Insurance Policies Be Better?
It is not accurate to assume that joint vehicle insurance will always be cheaper. For example, one partner may have a great driving history and entitled to a low premium policy. On the other hand, the other partner may have a suspect driving record and pay high premiums. Most companies will weigh the risky driver heavily in their calculations. Therefore, the total costs can be higher than what two separate policies will cost. In such cases, you cannot have a joint automobile insurance policy for the sake of having one policy. Besides, this could lead to arguments as to who would pay what part of the premium.
The way each company calculates the premium can play a critical role as well. For example, when you have a joint policy with several cars insured and several drivers company A could consider that high risk driver will have access to more than one vehicle. This thinking would lead to higher premiums for everyone.
The solution could be that high risk driver can have a separate policy with a safer car while the others can still pay low premiums even though they have sports cars. Most companies and states would allow a driver in your household to be excluded from your policy as long as he/she has own car and insurance policy. When you choose this route you have to remember that the excluded driver is not insured by the policy he/she is excluded from.
As with most things in life there may not be a one definite solution for one issue. That is why it is highly advisable to look at it in several angles and get a few quotes before making a decision. You can read further on how to compare auto insurance quotes and get the best deals. With a little attention and shopping around you will be able to find the highest savings on car insurance.