Marriage is a life-changing event, impacting everything from your housing arrangements to your taxes. What most people don't know is that this milestone affects their car insurance as well. We'll explain how.
Marriage can mean car insurance savings
Among other benefits, did you know marriage can also help you save on car insurance? Because married people get into fewer accidents than their non-married counterparts, they're seen as less risky to insure by car insurance companies. And, in the insurance world, less risk translates into lower car insurance rates. So if you've recently tied the knot, contact your insurer to see if your newlywed status qualifies you for lower rates.
Additionally, you and your partner may be able to save by combining car insurance policies. Many insurers, including Esurance, will give you a multi-car discount for insuring more than one car with the same policy.
When to combine car insurance policies
In general, if you and your spouse have stellar driving records, good credit histories, and haven't had a recent gap in coverage, expect your rates to drop when you combine your 2 policies. Insurance companies assign rates per policy, not per individual, so chances are you'll both pay less for the single policy than you'd pay for your own unique policies. And as mentioned, adding another car and driver could net you a discount on car insurance.
When you're ready to consolidate, sit down with your honey and review both policies. If you have different insurers, contact your insurer to see how your new marital status will affect your rates and coverages, then decide whose you'd like to stick with. If you need help deciding, compare car insurance quotes to see which insurer offers the coverage you need at the right price.
When to keep car insurance policies separate
Though merging 2 car insurance policies makes sense in many cases, there are instances when you may each want to keep your own. If one of you has a poor driving record, it's probably not in your best interest to combine policies. Combining your policy with a high-risk driver's will most likely increase your car insurance rates.
Even if you do keep your insurance policies separate, living with a risky-to-insure driver will make you risky to insure, too. Here's why.
How your spouse's driving record affects you
If you're married to someone with the need for speed and your spouse frequently incurs moving violations or has had numerous claims, your premium could increase — even if you choose to keep your policies separate.
Because insurance companies consider the driving histories of all family members living within the same household when underwriting policies, having a high-risk driver sharing your roof makes you riskier by association. After all, even if your spouse owns a separate vehicle and rarely drives your car, there are instances when he or she might need to. And since car insurance follows the car, your car insurance would have to cover the damages if your spouse gets into an accident in your vehicle. Consequently, your spouse could make you riskier to insure.
If you'd like to avoid the rate increase, you might want to consider a driver exclusion.
Excluding your spouse from your car insurance
Most car insurance companies, including Esurance, will require that you add all household members with access to your automobile to your insurance policy. Even if your spouse has a separate car and car insurance policy, most insurers will ask that you list your spouse.
Usually, adding a driver to your car insurance policy won't significantly increase your premium and will sometimes even lower your rate. However, if your spouse has a poor driving record, the addition of a secondary (high-risk) driver could negatively affect your rate.
If you don't want your premium to be impacted, you could exclude your spouse from your policy if it's permitted in your state. Keep in mind, however, that once you exclude your spouse, he or she will not be covered while driving your vehicle under any circumstances. In other words, if an accident occurs, you'll be responsible for all damages.
Marriage affects car insurance
As you can see, marriage not only unites 2 hearts, it generally marries insurance needs as well. If you've recently wedded, think about whether it makes more financial sense to keep your policies separate or unite them.
Keep in mind that your insurer will want to know of your newly married status. Contact your insurer to find out how your new union affects your rates, whether you need to add or exclude your spouse, and more.
If you're an Esurance policyholder, you can contact us anytime at 1-800-ESURANCE
(1-800-378-7262).
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