Marital Bliss: Unlocking Auto Insurance Savings

Married couples can lower their auto insurance by combining their policies. Insurers view married couples as financially stable and safer drivers, which results in reduced rates. By sharing a policy, couples can benefit from lower premiums and multi-car discounts. Additionally, insurers offer discounts for insuring multiple vehicles and bundling home and auto insurance policies. However, if one spouse has a poor driving record or credit history, it may be more cost-effective to maintain separate policies.

Insure multiple vehicles on one policy

Married couples can often save money by insuring multiple vehicles on one policy. This is known as multi-car insurance, and it covers multiple cars under one policy with a single provider.

Multi-car insurance policies are intended for covering two or more cars in a single household and usually offer discounts for each car added. You can typically add up to five cars to one policy, though some policies allow more.

The main advantage of multi-car insurance is the discount for each additional car. However, there are other pros and cons to consider:

Pros

• You'll get all the benefits of standard car insurance, plus potential discounts for each car.
• It can be easier to manage than multiple separate policies, as you'll have one insurer and all renewals will take place at the same time.
• Each car still earns its own no-claims discount.
• Some policies cover cars that spend part of the year away from home, which is useful for children at university.

Cons

• Putting a less experienced driver or someone with motoring convictions on the policy could increase the overall cost.
• Depending on how the policies are linked, if one driver makes a claim, it could push up the future price for other drivers on the policy.
• If you pay for insurance annually, insuring several cars at once can require a large one-off payment.

It's important to note that multi-car insurance is not always cheaper than separate policies, so be sure to compare quotes from different providers before deciding.

Take advantage of bundling discounts

Married couples can save money on their auto insurance by bundling their policies. This means combining all of their insurance policies with one company, such as using the same insurer for auto insurance and homeowners insurance. This can lead to significant discounts and lower rates. For example, State Farm offers a bundling discount that saves its customers an average of $1,073 annually when they bundle home and auto insurance, and $684 when they bundle auto and renters insurance. Progressive gives homeowners an average discount of 10% on car insurance, even if they don't buy Progressive home insurance.

There are several benefits to bundling insurance policies. It gives you a single payment date and a single renewal date. It also allows you to bundle other insurance policies, such as homeowners or renter's insurance, for even bigger discounts. Additionally, it ensures that both spouses are covered when driving each other's vehicles.

However, there are some situations in which married couples may choose to keep their insurance policies separate. For example, if one spouse has a bad driving record, a low credit score, or drives an expensive sports car, it may make sense to maintain separate policies. Each spouse's commute length and destination can also affect rates, so if one spouse works from home and the other commutes into a high-risk city, separate policies might be preferable.

It's important to note that even if married couples decide to have separate insurance policies, they may still be required to list each other on their policies, as most state laws require policyholders to list all household members. Unless a spouse is specifically excluded from a policy, rates could increase since the insurance company assumes they will drive the vehicle sometimes. Excluding a spouse from a policy is a drastic option and should be carefully considered, as it means they will not be covered if they drive the vehicle.

Maintain separate policies if your spouse has a bad driving record

Maintaining separate auto insurance policies can be a good idea if one spouse has a bad driving record. While combining policies usually results in better rates, a poor driving history can cause a significant increase in premiums.

If your spouse has a history of traffic violations, accidents, or DUIs, adding them to your policy could increase your premiums. A named-driver exclusion can be used in this case, but it's important to note that your spouse won't be covered by your insurance if they drive your car. This option should be carefully considered, weighing the potential savings against the possibility of your spouse needing to drive your vehicle.

In some cases, state laws allow you to exclude your spouse from your policy, but this depends on the insurer and the state you live in. Some states do not allow named-driver exclusions, and insurance companies may void your policy if they find out that an excluded driver has been using your car.

If you and your spouse decide to maintain separate policies, you will still need to list each other on your respective policies, as most state laws require policyholders to list all household members. Additionally, if you plan to drive each other's cars, you will need to be included on each other's policies.

It's worth noting that combining policies can provide benefits such as a single payment and renewal date, the ability to bundle other insurance policies for bigger discounts, and ensuring coverage when driving each other's vehicles. However, if one spouse has a bad driving record, the potential increase in premiums may outweigh these benefits.

Add your spouse to your policy if they have a clean driving record

Married couples can often benefit from lower auto insurance premiums. One way to achieve this is by adding your spouse to your policy, but only if they have a clean driving record. If your spouse has a history of moving violations, accidents, or DUIs, your premiums could increase.

Adding your spouse to your policy is a straightforward process. You will need to contact your insurance company and provide them with your spouse's name, birth date, and driver's license number. They will then check your spouse's driving record. You will also need to provide vehicle information, including the year, make, model, body style, vehicle identification number, safety features, anti-theft devices, current insurer, odometer reading, and estimated annual mileage.

Once your spouse is added to your policy, they can cancel their existing car insurance and receive a prorated refund for any unused premiums.

There are several benefits to having a joint car insurance policy with your spouse. Firstly, it ensures that you are both covered in the event of an accident. If your spouse drives your car and damages it, or vice versa, it will usually be covered if you have comprehensive and collision coverage. Liability coverage will also protect you if your spouse drives your car and hits another vehicle, covering damage to the other car and surrounding property, as well as injuries to others, up to the limits of your policy.

Secondly, a joint policy can save you money. You will benefit from your spouse's clean driving record, which may result in a more competitive rate, especially if you have had violations or accidents in the past. Additionally, sharing a policy is generally cheaper because you'll split the cost of certain coverages. You can also take advantage of multi-car discounts offered by many insurers, which can lead to significant savings.

Finally, it is easier to maintain a single policy than manage two separate policies. With a joint policy, there is no need to worry about which car is being driven by whom; you are both covered when driving each other's cars.

In most cases, insurers require you to add your spouse to your policy if you share a household. However, in some states, you may have the option to exclude your spouse from your policy. If you live at separate addresses, you will need to maintain separate car insurance policies since your cars are kept at different locations.

Before making any decisions, carefully consider the potential savings and risks involved. Adding a spouse with a poor driving record or credit history to your policy could increase your premiums. On the other hand, a spouse with a clean driving record may help lower your rates and provide additional benefits.

Compare quotes from different insurance carriers

Comparing quotes from different insurance providers is a great way for married couples to save money on their auto insurance. Here's how to do it:

Gather Information:

Have the following details on hand to quickly and easily compare insurance quotes online:

• Personal information: Address, date of birth, occupation, driver's license, and marital status for everyone on the policy.
• Vehicle information: Mileage, date of purchase, vehicle identification number (VIN), make, model, and year.
• Driving history: Any claims, violations, tickets, or completed driving courses in the past five years.
• Current or previous insurer's name: For everyone on the policy or in your household.

Choose the Right Liability Coverage Levels:

Liability insurance protects your assets in the event of a serious accident. Choose coverage limits that are equal to or greater than your net worth. For example, a policy with limits of 100/300/100 provides:

• $100,000 for bodily injuries per person.
• $300,000 total for all bodily injuries.
• $100,000 for property damage.

Decide on Full Coverage:

Full coverage includes liability, collision, and comprehensive insurance. Collision covers damage to your car in an accident, while comprehensive covers damage from weather, riots, civil disturbances, and more. Choose appropriate deductible amounts for each.

Collect and Compare Quotes:

Get quotes from at least two or three companies, including major insurers like Allstate, Progressive, and State Farm, as well as regional carriers. Ensure that each quote includes the same levels of liability, deductibles, drivers, vehicles, and discounts to make an accurate comparison.

By following these steps, married couples can effectively compare auto insurance quotes and find the best rates and coverage for their needs.

Frequently asked questions