How Can I Save on My Car Insurance After Getting Married?
Joint car insurance is not the best fit for everyone.
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Among the big changes that come with tying the knot, many couples might consider whether or not to combine their car insurance. While this option could be the right fit for many, you and your partner may want to explore how joining the same policy will affect your insurance premium.
If you recently got married or are simply considering updating your coverage, combining car insurance could offer many benefits. From potentially lower rates to increased convenience, joint car insurance can be an easy way to save money as a newly married couple.
Do I Have to Add My Spouse to My Car Insurance?
There is no legal requirement for married couples to share the same car insurance policy. However, many choose to do so because of the advantages commonly associated with joint car insurance.
Even if you don't want to combine car insurance policies with your spouse, it's a possibility that each of your insurance companies will have you either explicitly add or exclude your partner from your policy if you live at the same address. Car insurance companies often do this because of the high likelihood that you and your spouse will share a vehicle.
Potential Benefits of Joint Car Insurance
Most auto insurance companies offer lower rates to married couples because they are often considered more stable and less of a risk than unmarried policyholders. Beyond an overall lower rate, auto insurance companies also commonly offer special discounts for those with multi-car or home-and-auto-bundled policies. Geico, for example, offers a multi-car discount of up to 25% and varying multi-policy discounts based on your chosen bundle.
How to Save on Car Insurance After Getting Married
To better understand what potential savings you and your partner could receive from a joint car insurance policy, you may consider trying different combinations of primary policyholders or shopping around for a new provider, rather than switching to either of your existing insurance companies.
You and your partner can also benefit from the convenience of only having to manage one policy for all of your vehicles. This blanket coverage could also make driving each other's cars less stressful, as both you and your spouse will be covered in case of an accident.
How to Add Your Spouse to Your Car Insurance
The best way to add your spouse to your car insurance is by contacting your insurance provider directly. Some insurance companies may simply add your spouse to your policy as a co-owner. Having your spouse listed as a co-owner on your joint insurance policy means you will both have equal control over payments, coverage, and claims for any vehicles covered by your policy.
You may also choose to keep separate policies but list your spouse as an authorized driver. In this case, you will need to contact each insurance company separately to add one another as drivers on your separate policies.
When to Consider Excluding Your Spouse From Your Car Insurance
Despite these benefits, there are also some instances when joining together in both marriage and car insurance may not provide the highest overall savings on your insurance premium.
Consider this scenario: You currently have a low insurance premium with your insurance company. Your spouse is a higher-risk driver with a number of reported accidents, making their premium significantly higher than your own. By combining your insurance, your premium could rise to not only account for your spouse's vehicle but also for their driving record.
Even with a multi-car discount, you could end up with a slightly higher joint monthly bill than if you had kept your coverage separate. There could even be a difference in what savings — like safe driver discounts — you're eligible for when adding another driver with a less-than-stellar record to your account.
Different insurance companies will also have price variations to take into consideration. For those deciding whether or not to combine, keeping separate policies rather than combining into one could still be cheaper. Getting multiple quotes on auto insurance just takes time, there is no impact to a score like there is when you get a credit check.
Although credit is a factor, when you get an insurance quote they do a soft credit inquiry, so it does not count against your credit score. In order to make an informed decision as to whether or not to combine into one policy or retain separate policies, as well as which insurance company to use, be sure to read and understand any insurance quotes and consult an insurance professional.
