Auto Insurance: Newlyweds And Shared Policies

Newlyweds can share the same auto insurance policy, and doing so can often lead to lower rates and discounts. Married couples are considered lower risk by insurance companies, and having two cars on the same policy can earn multi-car discounts. However, if one spouse has a poor driving record, separate policies may be cheaper.

Newlyweds can save money by sharing an auto insurance policy

Congratulations on your recent marriage! Now that you're married, you may want to consider combining your auto insurance policy with your spouse. Not only will this streamline your policies, but it can also save you money. Here's how:

Multi-Car Discounts

If you and your spouse have two cars, you can often qualify for multi-car discounts by insuring them under the same policy. Even if your household only has one vehicle, you may still be able to earn discounts by sharing a policy.

Combine with Other Insurance Policies

You can also save money by combining your auto insurance policy with existing homeowners or renters insurance policies from the same company. This is known as bundling your coverage, which can result in significant savings.

Single Payment and Renewal Date

Having a joint policy means you only have to worry about one payment date and one renewal date, making it easier to manage your finances.

Ensure You're Both Covered

When you share a policy, you're both covered when driving each other's vehicles. This can give you peace of mind, especially if you often borrow each other's cars.

Lower Rates for Married Couples

Insurance companies typically offer lower rates to married couples, reflecting their view that married couples are lower-risk. So, by sharing a policy, you can take advantage of these lower rates.

However, it's important to note that combining policies may not always be the best option. If one spouse has a poor driving record or a low credit score, separate policies may be more cost-effective. Additionally, if one spouse drives an expensive or sports car, the cost of insuring that vehicle may increase the overall premium.

In conclusion, while sharing an auto insurance policy as newlyweds can lead to significant savings, it's important to consider all factors, including driving records, credit scores, and vehicle types, to determine the best option for you and your spouse.

Married couples are viewed as one entity in the eyes of the law

Newlyweds can save money and streamline their policies by combining their auto insurance policies. This is because insurance companies view married couples as a single entity, and so they are jointly liable for each other. This is known as joint liability exposure.

The idea that married couples are one entity in the eyes of the law has its roots in the legal doctrine of coverture, which originated from the French word 'couverture', meaning 'covering'. Under coverture, a married woman's legal existence was considered to be merged with that of her husband. The principle was described in William Blackstone's Commentaries on the Laws of England in the late 18th century:

> By marriage, the husband and wife are one person in law: that is, the very being or legal existence of the woman is suspended during the marriage, or at least is incorporated and consolidated into that of the husband: under whose wing, protection, and cover, she performs everything; and is therefore called in our law-French a feme-covert; is said to be covert-baron, or under the protection and influence of her husband, her baron, or lord; and her condition during her marriage is called her coverture.

Coverture was inherited by many common-law jurisdictions, including the United States, and was only substantially modified in the late 19th century following the rise of the women's rights movement. Certain aspects of coverture survived as late as the 1960s in some US states.

While the doctrine of coverture has been largely eliminated, the idea that married couples are a single entity in the eyes of the law persists. This is reflected in the requirement for married couples to be on the same car insurance policy.

However, it is worth noting that unmarried couples who live together and share a vehicle can also be on the same insurance policy. In such cases, each partner may still need to have a separate policy if they own their cars individually.

Combining policies may not always be the best option

While combining auto insurance policies can lead to significant savings for newlyweds, there are instances where it may not be the optimal choice. Here are some scenarios where keeping separate policies might be more prudent:

Poor Driving Record

One of the primary considerations when deciding whether to combine auto insurance policies is the driving history of both spouses. If one spouse has a poor driving record, characterised by multiple accidents or recent gaps in insurance coverage, combining policies could lead to higher overall costs. Insurers consider high-risk drivers less favourable and will increase rates for the combined policy, especially if the other spouse was previously considered low-risk. In such cases, it may be more cost-effective for the high-risk driver to maintain a separate policy or explore options like driver exclusion.

Credit Scores

In certain states, insurance companies take credit scores into account when determining insurance premiums. If one spouse has a strong driving record but a poor credit score, and the other has a good credit score but a less-than-perfect driving record, combining policies might not yield the best rates. To optimise their premiums, couples in this situation should consider placing the spouse with the better credit score as the primary insured on the policy.

Number and Age of Vehicles

The number and age of the vehicles owned by the couple can also influence the decision to combine policies. If one spouse has a significantly older vehicle, typically over ten years old, the potential savings from combining policies might not outweigh the costs. Older vehicles tend to have lower collision coverage, and in the event of an accident, a higher deductible can help manage insurance premiums.

State Regulations

State regulations vary, and some states, such as California and Massachusetts, do not consider credit scores when determining insurance premiums. In these states, the driving record carries more weight, and couples should consider listing the spouse with the better driving record as the primary insured to obtain better discounts.

While combining auto insurance policies as newlyweds can often result in cost savings and streamlined policies, it is not always the best option. It is essential to consider the specific circumstances, such as driving records, credit scores, vehicle age, and state regulations, to make an informed decision that aligns with the couple's financial goals and insurance needs.

Newlyweds can still share a policy if one spouse has a poor driving record

Newlyweds can still share a car insurance policy if one spouse has a poor driving record. However, it is important to note that this could result in higher insurance rates. When a low-risk driver joins a policy with a high-risk driver, the high-risk driver will increase the rate considerably.

If your spouse has a poor driving record, you may want to consider excluding them from your policy. This is known as a "named-driver exclusion" and means that your spouse will not be covered by your insurance if they drive your car. Excluding your spouse from your policy may help you get a lower premium. However, if your spouse does drive your car, your insurance will be void, and you could face legal consequences.

Another option to consider is keeping separate insurance policies. While this may not result in the same level of savings as combining policies, it could be a better option if one spouse has a poor driving record. Each spouse will need to include the other on their policy, as most state laws and insurance companies require policyholders to list all household members.

To get the best rates, it is recommended to shop around and compare quotes from different insurance providers. You may also want to consider bundling your home and auto insurance policies, as this can often result in significant savings. Additionally, taking a ministry-approved driver education course can help reduce your premium.

Newlyweds can still be insured on the same policy if they live separately

Newlyweds often choose to combine their auto insurance policies to save money and streamline their policies. Married couples are considered lower-risk by insurance companies, and so they are usually offered lower insurance premiums. Additionally, having two cars on the same policy can often earn multi-car discounts from insurers.

However, there are some cases in which it may not make sense for newlyweds to combine their auto insurance policies. If one spouse has a poor driving record, separate policies could end up costing less. When a low-risk driver joins a policy with a high-risk driver, the high-risk driver will increase the rate considerably.

If newlyweds are living in separate households, it is necessary to have separate car insurance policies. This is because the vehicles are housed in different locations. This rule also applies to married couples who are legally separated.

Even if newlyweds don't combine policies, they should still review their insurance coverage regularly. It is also important to note that most car insurance companies require that all household members be listed on the auto insurance policy, whether married or not.

Therefore, while newlyweds can still be insured on the same policy if they live separately, there may be additional considerations and requirements depending on their specific circumstances and insurance company.

Frequently asked questions