Insuring Your Spouse: A Smart Decision For Peace Of Mind

Whether or not you should make your spouse an insured driver depends on a variety of factors. While there is no legal requirement to add your spouse to your car insurance policy, most insurance companies require all licensed household members to be listed as drivers. If your spouse has a poor driving record or a low credit score, your insurance rates may increase. However, if your spouse is a safe driver, adding them to your policy could result in significant savings, especially if you insure multiple cars and drivers under the same policy. Ultimately, the decision to add your spouse as an insured driver depends on your specific circumstances and the requirements of your insurance provider.

If your spouse has a poor driving record

In some states, you may be able to list your spouse as an excluded driver on your insurance policy and avoid a premium bump. However, not all insurers allow this, and it's important to check your state laws and insurance company guidelines. If you choose to exclude your spouse and they drive your car, they will be uninsured if they get into an accident. This could also impact your rates going forward.

If you live in separate households

If you and your spouse live in separate households, you are not required to add them to your car insurance policy. In fact, in this case, two separate auto insurance policies would be required because the vehicles are housed in different locations. However, it is worth noting that this may vary depending on the state in which you live. While some states allow you to exclude your spouse from your car insurance policy, others may only permit it under certain circumstances, such as not having a license or already having their own policy. On the other hand, certain states will automatically cover your spouse, making it impossible to exclude them from your policy.

If your spouse has a poor credit score or driving record, adding them to your policy could result in increased premiums. Their driving history will impact your rate, and you will continue to pay higher rates as long as they are on your policy and living in the same household. Therefore, if you are separated and living apart, removing them from your policy can help lower your rates.

However, it is important to consider the potential risks involved. If your spouse occasionally drives your car and is involved in an accident, your insurance company may refuse to cover the claim if they are not listed on your policy. To avoid this, you can list your spouse as an excluded driver, but this may not be allowed by all insurance companies. By doing so, their credit and driving record will not affect your premiums, but any damage caused by them while driving your car will likely not be covered.

On the other hand, if both you and your spouse have good driving records and claim histories, adding them to your policy could result in financial benefits. You may be eligible for various discounts, such as a "marriage" discount, multi-driver discount, multi-vehicle discount, and a "homeowner" discount if you bundle your home and auto insurance policies. Additionally, you will only need to manage a single policy, keeping track of one renewal date and set of payments.

If your spouse is an unlicensed driver

While it is not mandatory to add your unlicensed spouse to your car insurance policy, it is advisable to do so. This is because, in the event that they ever drive your car and have an accident, you can avoid potential issues with your insurance company. If your unlicensed spouse is not listed on your policy and gets into an accident, your insurance company may deny the claim and cancel your policy. This can result in serious financial consequences and even legal issues if the accident involves injuries or significant damage.

Additionally, it's worth noting that state laws differ, and some states may require all household members to be listed on the policy, regardless of their licensure status. In some states, failing to disclose all drivers in the household can be deemed misrepresentation or fraud. Therefore, it is essential to review your state's laws and insurance company guidelines to ensure compliance.

If your spouse obtains a driver's license in the future, you must notify your insurance company. At that point, they will be rated as an occasional, primary, or secondary driver, and their driving record and credit score will be considered in determining your insurance rates. If your spouse has a poor driving record or low credit score, you may want to consider excluding them from your coverage if they do not plan to drive your car.

Overall, while it may not be mandatory to add an unlicensed spouse to your car insurance policy, it is recommended to do so to avoid potential issues and ensure compliance with state laws and insurance company guidelines. By being proactive and transparent with your insurance company, you can protect yourself financially and legally in the event of any accidents or changes in your spouse's driving status.

If your spouse has a good driving record

Most insurance companies require all licensed members of your household to be listed as drivers, and in some states, it is mandatory to list all drivers in your household. Failing to do so could be deemed misrepresentation or fraud, giving your insurance provider grounds to deny a claim or cancel your policy. Additionally, having a spouse with a clean driving record on your policy may get you more competitive rates overall. Married couples with clean records on the same policy typically pay about 4% to 13% less than safe, single drivers.

Furthermore, by adding your spouse to your car insurance policy, you can take advantage of multi-car, multi-driver, and multi-policy discounts. You can also benefit from the convenience of managing a single auto insurance policy instead of two separate ones, avoiding the hassle and cost of insuring the same car twice in single-car households.

However, it's important to note that insurance rates are influenced by various factors, including driving history and credit score. Thus, it's recommended to compare insurance coverages and shop around for the most affordable options that cater to your specific circumstances.

If your spouse has a bad credit score

In some states, if you don't inform your insurance company about all the drivers in your household, it can be deemed a form of fraud. Therefore, it is important to check your state laws and insurance company guidelines. If your spouse doesn't have a separate vehicle, they should be listed as a driver on your car insurance.

If your spouse has a poor credit score and never plans to drive your car, excluding them from the policy may reduce your premiums. Named-driver exclusions are not allowed in some states or by all insurance companies, so it is a good idea to shop for insurance that meets this criterion.

Ultimately, whether or not you add your spouse to your car insurance policy is a question for your particular provider.

Frequently asked questions