Marriage And Auto Insurance: What Changes?

Getting married can have a significant impact on your vehicle insurance. While marital status does not affect insurance rates in some US states, in most cases, married couples tend to pay lower premiums than single people. This is because insurers often perceive married people as more stable, responsible, and less likely to be reckless, and statistics show that married drivers are involved in fewer accidents. However, if one spouse has a poor driving history, it can negatively affect both insurance rates.

Married couples' insurance rates

Marrying your partner can be a beautiful thing, but it can also be a lot of work. There are so many things to consider, from the wedding itself to the honeymoon and, of course, the impact on your personal finances. One aspect of your finances that can be affected by marriage is your insurance rates. So, what happens to your insurance when you get married?

Marriage is often viewed by insurance companies as a sign of stability, and married couples are typically considered lower-risk than single individuals. This perception can lead to lower insurance rates for married couples. According to a rate analysis by CarInsurance.com, married couples may pay up to 13% less on their insurance premiums. The discount for married couples varies by insurer but averages around an 8-12% reduction nationwide. This discount is continuous as long as the couple remains married.

Insurance companies consider married couples to be more financially stable and responsible than their single counterparts. Statistically, married couples tend to be involved in fewer accidents and are less likely to make insurance claims. This perception is supported by research, including a study by the National Institute of Health, which found that unmarried drivers who had never been married had twice the risk of accident-related injuries than married drivers. As a result, insurance companies view married couples as safer drivers and offer them lower premiums.

Combining insurance policies

In addition to the potential discount for being married, couples can also benefit from combining their insurance policies. By insuring multiple cars under one policy, couples can take advantage of multi-car discounts offered by many insurance companies. Combining insurance policies can also lead to a multi-policy discount if the couple insures their vehicles and homes (or renters insurance) with the same company. The ease of managing a single policy instead of two can also be a compelling reason to combine insurance after marriage.

While marriage often leads to cheaper insurance rates, this is not always the case. If one spouse has a poor driving record or multiple claims, it can negatively impact the insurance rates for both partners. In such cases, it may be advisable to keep separate insurance policies, at least until the violations or claims drop off the record. Additionally, some states in the US, such as Montana, Massachusetts, Hawaii, and Michigan, do not allow marital status to be a determining factor in car insurance rates.

Admin fees for changes

Some insurers may charge a fee for changing your marital status or name after marriage. This usually costs around £15 to £30, but the fee can be higher depending on the insurer. However, you can minimise admin fees by requesting all changes at once, as this will typically only incur a single fee. It's worth noting that some insurers allow you to make changes to your policy online for free, so it's a good idea to check with your insurer before proceeding.

If you feel that you've been charged an excessive admin fee, you have the right to challenge it. Contact your insurer directly to discuss options for reducing or waiving the fee. If they refuse, you can escalate the issue to the Financial Ombudsman Service, which can rule in your favour if the charge is deemed unfair. Remember to review the terms and conditions of your policy to understand all the associated admin costs before making any changes.

Driving your spouse's car

If you're married, you'll still need insurance to drive your spouse's car. There are only a handful of policies that let you drive other people's cars, and even then, you may not be covered to drive your partner's car.

The easiest way to get insured to drive your spouse's car is to be added as a named driver to their policy. Adding a named driver can make the insurance more or less expensive, depending on their driving history and claims record. If you have a good driving record and your spouse does not, you may be able to save money by keeping your policies separate. However, if you plan to drive each other's cars, you'll need to add each other to both policies.

If you and your spouse have good driving records, you could save money by combining your auto insurance plans into one. Married couples typically pay lower premiums than single drivers, as insurers consider them lower-risk. Combining policies can also result in multi-car and multi-policy discounts.

Multi-car insurance policies

Eligibility

Discounts and Savings

One of the biggest advantages of multi-car insurance policies is the potential for substantial discounts. Most insurance companies offer discounts when you insure multiple vehicles with them. These discounts can range from 10% to 25% off the liability, comprehensive, and collision portions of your policy. Additionally, some companies may offer bundling discounts if you combine your car insurance with other types of insurance, such as homeowners or renters insurance.

Customization

While certain coverages, such as liability and uninsured motorist coverage, are typically set at the policy level, you may have the option to customize collision and comprehensive coverage for each vehicle. This flexibility is beneficial if you want to insure both a new car and an older car that doesn't require full coverage.

Driver Considerations

When adding drivers to your multi-car insurance policy, it's important to consider their driving history and risk profile. Adding a high-risk driver, such as a young or inexperienced driver, may increase your premium. On the other hand, if your spouse has a good driving record and credit score, they can help lower your rates. Remember to add the names of anyone who might drive your vehicle, even if they don't live with you, to ensure coverage in case of an at-fault accident.

Choosing the Right Provider

When shopping for multi-car insurance, it's essential to compare quotes from multiple providers. Discount rates and eligibility criteria can vary, so ask about multi-car discounts when requesting quotes. Some of the top-rated providers for multi-car insurance include Country Financial, USAA, Erie Insurance, Geico, and Nationwide.

No-claims bonuses for married couples

No-claims bonuses can become a little complicated for married couples. If you share one car, either you or your spouse may lose your no-claims bonus, as only one person can be the "main driver" and earn the bonus. The other person will be a named driver, which means they won't earn a bonus.

If you've built up the maximum no-claims bonus, you can go uninsured for up to 2 years before it expires. To keep hold of both no-claims bonuses, you can swap who the "main driver" is each time you renew your policy. However, this can be risky, as it may be considered "fronting", which is illegal. Fronting is when a lower-risk driver is added as the "main driver" to make the insurance cheaper, even though they don't do most of the driving.

Another option is to get a multi-car policy, which allows both drivers to earn separate no-claims bonuses. However, these policies can be expensive, and both drivers must live at the same address.

If you get divorced, the no-claims bonus can become part of the divorce settlement and be transferred to a new policy, even if the original policy is cancelled.

Frequently asked questions