Marital Status And Auto Insurance: Lying Or Not?

Lying about your marital status on an auto insurance application is considered fraud and can have serious consequences. While being married often results in lower insurance premiums, lying about it to save money can lead to your claim being denied or even legal prosecution. Auto insurance companies typically ask for proof of marriage, such as a marriage certificate, and require all licensed household members to be listed on the policy. Married couples usually benefit from combining their auto insurance plans, but it is essential to provide accurate information to avoid legal and financial repercussions.

Lying about marital status can be considered fraud and lead to prosecution

While lying about your marital status on an auto insurance application may seem like a harmless act, it can have serious consequences and is considered fraud. Insurance companies view married people as more financially stable and lower-risk, which often results in reduced rates for married couples. This is because, statistically, married drivers tend to make fewer claims, and studies show that single drivers are twice as likely to be involved in accidents. As a result, some people are tempted to lie about their marital status to obtain cheaper insurance rates.

However, lying on an insurance application is not only unethical but also illegal. Insurance applications include language that expressly states that providing false information is grounds for denial of coverage or even prosecution in a court of law. If you are caught lying about your marital status after making a claim, your insurance company is likely to deny coverage, and you may face legal consequences. In some states, failing to disclose your spouse on your policy can be deemed misrepresentation, a form of fraud.

Furthermore, insurance companies often require proof of marriage, such as a marriage certificate, to verify your marital status. They may also ask for proof of residence or other forms of identification to cross-reference the information provided. In addition, insurance companies have access to various data sources and can verify information through different means, making it increasingly difficult to get away with lying.

The consequences of lying about your marital status on an auto insurance application far outweigh any potential benefits. Not only is there a risk of being denied coverage, but you could also face legal prosecution and find yourself in significant legal trouble. Therefore, it is always best to provide accurate and honest information when applying for insurance to avoid any potential issues or complications in the future.

Married couples can save between 4% and 10% by combining their auto insurance plans

Married Couples and Auto Insurance Savings

Married couples who combine their auto insurance plans can save between 4% and 10% on their premiums. This is because insurers view married couples as less risky and more financially stable than single drivers. This perceived lower risk results in lower rates for married couples. In addition to the savings, there are other benefits to combining auto insurance plans as a married couple.

Multi-Vehicle Discounts

Carriers usually offer a multi-vehicle discount when both spouses' cars are insured on one policy. This discount can be significant, sometimes as high as 20% to 25% off the premium. Combining policies also makes it easier to manage than having two separate policies.

Multi-Policy Discounts

Another way to save money on insurance as a married couple is by bundling multiple types of policies with the same company. For example, a couple can insure their cars together and also purchase homeowners or renters insurance from the same company, resulting in a multi-policy discount.

Lower Rates for Clean Driving Records

If both spouses have clean driving records, they can benefit from even more savings. Married couples with clean driving records on the same policy typically pay about 4% to 10% less than safe, single drivers. However, if one spouse has a poor driving record or low credit score, adding them to the policy can increase the premium.

Excluding a Spouse from the Policy

In some cases, it may be beneficial to exclude a spouse from the policy, especially if they have a poor driving record or low credit score and do not plan to drive the family car. Excluding them can help reduce the premium. However, this option is not allowed in all states or by all insurance companies, so it's important to shop for insurance that meets this criterion.

While combining auto insurance plans can result in significant savings for married couples, it's important to consider all factors, such as the driving records and credit scores of both spouses, when deciding on the best insurance option.

Insurers require policyholders to list all licensed household members

The general rule is that all household members who are licensed drivers should be listed on the auto policy, regardless of whether they regularly drive the insured car. This includes household members with their own separate insurance policies or those who only occasionally operate the insured vehicle. However, unlicensed teenagers or younger members under the age of 14 do not need to be listed.

It is important to note that not every listed member will affect the insurance rates. Policyholders can work with their insurance agents or providers to classify members on the policy based on their driving status. For example, household members who do not have a driver's license and do not plan to get one can be classified as "non-drivers". Similarly, licensed drivers in the household who carry their own auto insurance policy can be classified as "other insurance".

Failing to disclose all licensed household members on the auto insurance policy can have serious consequences. In some states, it may be deemed misrepresentation or fraud. If an accident occurs involving an unlicensed household member, the insurance company may deny coverage. Additionally, withholding information about licensed household members can impact the insurance company's ability to accurately calculate the risk and set the premium.

Married couples are considered lower-risk and less likely to file a claim

Secondly, married couples are assumed to have greater financial security. They are more likely to pool their assets, own a home, and have children. As a result, they are considered more financially stable and less likely to file insurance claims.

Thirdly, married couples often qualify for more discounts. They are more likely to own a home and have home insurance, life insurance, and multiple vehicles. By bundling their insurance policies and insuring multiple drivers and vehicles under one policy, they can drive down their insurance costs.

Finally, insurance providers assume that married couples share driving responsibilities, so each person spends less time behind the wheel, leading to lower overall mileage and a reduced risk of accidents. This assumption further contributes to the perception of married couples as lower-risk drivers.

While being married can result in lower insurance rates, it's important to note that other factors also play a role in determining insurance premiums, such as driving records, credit scores, age, vehicle type, and location. Additionally, it's essential to be honest when providing information to insurance companies, as lying or omitting information can have serious consequences, including claim denial or legal prosecution.

If you don't inform your insurer about your spouse, they can deny claims and cancel your policy

When you apply for car insurance, you will be required to fill out a proposal form or a statement of facts. This will include questions about your marital status, as insurers will usually ask if you are married. This is because insurance companies consider all licensed drivers in a household when calculating rates. A spouse with a poor driving record or credit score can increase your rates or make it difficult to get coverage.

It is important to note that state laws differ, and some states may not require you to list your spouse on your policy. However, it is always best to be honest and disclose all relevant information to your insurer to avoid any issues with claims or policy cancellations.

Frequently asked questions