Auto Insurance: Savings Strategies For Married Couples

Married couples can save money by combining their car insurance policies, as they are seen as less risky by insurers. However, there are some cases where it may be beneficial for couples to keep separate policies, such as when one partner has a bad driving record or poor credit. On average, married couples pay $140 per month for full-coverage car insurance, which is 5% less than unmarried couples. This is because insurance companies consider married couples more financially stable and less likely to make a claim. Various factors can affect car insurance costs for married couples, including driving history, credit score, and the number of cars insured.

Multi-car discounts

Multi-car insurance policies are a great way to save money on your auto insurance. By insuring multiple vehicles under one policy, you can take advantage of significant discounts offered by most insurance providers. The amount you save will vary depending on the company, but it's not uncommon to see discounts of up to 25% for insuring multiple cars. For example, Geico offers savings of up to 25%, while State Farm offers a discount of up to 20%.

There are several benefits to having a multi-car insurance policy. Firstly, it can simplify the process of paying your premiums. Instead of juggling multiple payments and due dates, you only need to make one payment and track one policy renewal date. This saves time and effort, even if it doesn't directly reduce your premium costs.

Another advantage of multi-car insurance policies is the ability to stack insurance coverages. In states where it's available, stacking coverage allows you to take advantage of the total amount of your coverage at any time. For example, if you have two cars with $50,000 in uninsured motorist (UIM) coverage each, by stacking your coverage, you effectively have a $100,000 UIM policy protecting you at all times.

When considering a multi-car insurance policy, it's important to shop around and compare quotes from multiple insurance companies. The discount offered by each company can vary, and it's essential to find the best deal for your specific situation. Additionally, keep in mind that some companies might not offer a multi-car discount for a single policy but may provide a multi-policy discount if you have separate insurance policies for each vehicle.

It's also worth noting that the eligibility criteria for multi-car insurance policies typically include anyone you live with, including your spouse, children, family members, and even roommates. By adding these individuals to your policy, you can ensure that they are covered in case of an accident, especially if they occasionally drive your car.

In conclusion, multi-car insurance policies offer a convenient way to manage insurance for multiple vehicles while also providing the opportunity for significant cost savings. By comparing quotes and taking advantage of available discounts, married couples can optimize their auto insurance coverage and reduce their overall expenses.

Multi-policy discounts

The amount you can save with multi-policy discounts varies by provider and the types of policies you bundle together. For example, American Family Insurance offers customers who bundle their auto and home insurance policies a discount of up to 23% on both policies. Similarly, Bupa offers a 15% discount for customers with Ultimate Health Insurance and a 10% discount for those with other Bupa Health Insurance plans when combined with a comprehensive car insurance policy.

Other providers like GIO, NRMA, RAA, and Suncorp also offer multi-policy discounts, with potential savings of up to 15% or 10% on each eligible policy. These discounts are a great way to simplify your insurance while also reducing your overall costs.

In addition to combining different types of insurance, you can also benefit from multi-vehicle discounts if you insure more than one car with the same provider. This is another way for married couples to save money on their auto insurance, especially if both partners own a car.

When considering multi-policy discounts, it's important to compare the level of coverage offered by different providers and choose the one that best suits your needs. It's also worth noting that some states, such as Montana, Massachusetts, Hawaii, and Michigan, do not allow marital status to be a determining factor for car insurance rates.

Discounts for young married couples

Young married couples will generally pay less for car insurance than their single peers. However, insurance companies charge all younger drivers higher rates due to their lack of experience behind the wheel. By maximizing your discounts, young married couples can save even more on their car insurance quotes.

If you're married college students, you may be eligible for good student discounts, which can save between 5% to 25%.

If both you and your spouse are safe drivers, consider a telematics program that monitors your driving habits and rewards safe driving.

You can also save money by making the most of multi-car and multi-policy discounts. Married couples with more than one vehicle can get a multi-car discount. For example, Geico offers a discount of up to 25% for insuring multiple cars.

Multi-policy discounts are also available for married couples who own a house or rent an apartment together. You can bundle your home or renters insurance with your car insurance.

Other discounts married couples can take advantage of include:

• Paying your policy balance in full
• Making automatic payments
• Avoiding accidents and tickets
• Installing an anti-theft device
• Driving a brand-new car
• Taking a defensive driver course

The impact of a poor driving record

While married couples are generally considered lower-risk drivers and often pay lower insurance premiums than single individuals, a poor driving record can impact these rates. Here is some information on how a poor driving record can affect auto insurance for married couples:

A poor driving record can have a significant impact on auto insurance rates for married couples. If one spouse has a history of accidents, traffic violations, or major offences such as reckless driving or DUI, it can result in higher insurance premiums for both partners. Insurance companies typically view a poor driving record as an indicator of unsafe driving habits and may consider the couple a higher risk. In such cases, insurance companies may offer a named-driver exclusion, which means the spouse with the poor driving record won't be covered when driving their partner's car. This can help lower premiums but comes with the risk of the excluded spouse driving uninsured.

Credit Score Considerations

In addition to driving records, credit scores can also influence insurance rates. Most insurance companies and states use credit scores to determine premiums. A low credit score can negatively impact insurance rates, and if one spouse has a significantly lower credit score than the other, it may be advisable to keep separate policies to avoid this impact.

Vehicle Choice Matters

The type of vehicle driven by each spouse can also affect insurance rates. If one spouse drives a high-end or expensive car, the insurance premium will likely be higher to offset the risk of insuring a high-value car. In this case, maintaining separate policies may be more cost-effective.

Strategies to Minimise Premium Impact

To minimise the impact of a poor driving record on insurance rates, couples can consider strategies such as combining multiple cars and insurance policies, taking advantage of multi-vehicle discounts, bundling home and auto insurance policies, or utilising accident forgiveness clauses. Additionally, improving driving habits and taking driver education courses can help reduce the risk profile and potentially lower premiums over time.

The impact of poor credit

While getting married can generally lead to lower auto insurance premiums, there are instances where a couple's rates may increase. One such instance is when one spouse has a poor driving record, poor credit history, or drives an expensive car.

In many states, insurers use credit data to create a credit-based insurance score when determining premiums. These scores are confidential and differ from the credit scores used by lenders. They are, however, based on similar information. A driver with a credit score in the 700s or 800s will likely pay less for their policy than someone with a score in the 500s or 600s.

If one spouse has a low credit score, it is advisable for the other spouse to be the only named insured on the policy. This way, only their credit report will be used to determine the premium.

Additionally, if one spouse has a poor credit history, maintaining separate car insurance policies may be more cost-effective than sharing a policy. While this may result in higher rates for the spouse with poor credit, it could save the other spouse money.

To make an informed decision, it is recommended to check the credit score of the spouse with poor credit history and compare insurance quotes for both joint and separate policies.

Frequently asked questions