Marriage and Its Car Insurance Implications
Posted on Thu, Oct 13, 2011
Marriage is a life-changing event, impacting everything from your living arrangements, finances and even your car insurance. Did you know that once you’re married, you could save on car insurance by combining your two policies into one? Or that your spouse’s driving history could affect your premiums?
Since married people are considered less risky to insurance companies than their single counterparts, they can benefit from 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.
You and your partner may also be able to save by combining your two car insurance policies into one. Many insurers give a multi-car discount for insuring more than one car with the same policy.
In general, if you and your spouse have excellent driving records and haven't had a recent gap in coverage, you should combine your two 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 separate policies.
There are some instances where it might be more financially prudent for each of you to keep your own policy. If one of you has a less than stellar 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 Massachusetts car insurance rates. Even if you do keep your insurance policies separate, living with a risky-to-insure driver might make you risky to insure too and therefore, increase your own premium.
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 instead of the driver, your car insurance would have to cover the damages if your spouse gets into an accident in your vehicle.
If you don't want your premium to be impacted, the state of Massachusetts allows you to exclude your spouse from your policy. 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.
As you can see, marriage unites auto insurance needs as well as couples. If you've recently wedded, think about whether it makes more financial sense to keep your policies separate or combine them into one. More often than not, it will result in a discount.
Be sure to notify your insurer of your newly married status and find out how your new union affects your rates.