Is it a Good Idea to Combine Auto Insurance Policies of Newlyweds?
Nobody pays too much attention to auto insurance when they are getting married. You may not even be aware of how marriage would be affecting your auto insurance rate.
Once festivities of your big day and the honeymoon adventures are over, you could consider combining auto insurance policies.
Auto insurance is generally much cheaper and convenient for married couples. However, you must watch out for the drawbacks as well.
You Would End Up Saving
The best thing about auto insurance is that even though you have done nothing, the very fact that you are now married is probably going to impact positively on the insurance rates once your vehicle insurance policy is being reviewed. According to a reputed auto insurance comparison engine, there would be a minimum of 10 to 12 percent savings on premium once you are married, and other factors remaining the same. The reason behind this fact is that insurers feel that married people would less likely be filing a claim as opposed to drivers who are single and of comparable profile. Married individuals are regarded by insurers as relatively less risky for insuring.
Combining Policies: Sensible Thing to Do
To enjoy greater discounts, consider combining your car insurance policy along with your spouse’s in a single insurance policy. This would really make sense if both of you have flawless driving records plus there are no gaps in recent times in insurance coverage. You must not forget that besides lower rates if you have two cars on a single policy, you would be earning multi-car discounts additionally from your insurers. Moreover, you could be earning discounts if you are sharing a policy even though there is only one vehicle in your household.
Even if you are using only one car in your family, insurers would still be recommending a single policy covering both drivers. This would be ensuring that both you and your spouse would be insured without the additional expenses of the second insurance policy. Finally, if you combine your vehicle insurance policy with your existing renters’ or homeowners’ policies under the same insurance firm, you would end up getting greater discounts overall.
Ask for a Combined Policy Quote
Insurance companies in some states would be paying importance to your credit scores along with your driving record while determining your insurance premium. Insurance premium rates would be affected as per your individual financial and driving histories. For instance, what if your partner has a great driving record but poor credit score? What if you have a fantastic credit score but have just got a speeding ticket?
The best thing you could do is just go about getting a quote for combining your policies into one auto policy. See what happens if you add your spouse to your policy or if she adds you to her policy. It is best to get quotes for both drivers on one single policy. As far as credit scores are concerned, the wisest approach is to make the one with better credit score, the primary insurer. This would help you get a better premium rate but is applicable in only those states that consider credit scores. California, Massachusetts, and some other states do not take credit scores into account. In such a case, the one with a better driving record must be presented as the primary insurer to get better discounts.
When Combining Policies Is Not a Good Idea
It is not always a good idea to combine auto insurance. For instance, if one of the partners has a really poor driving record then it is better to opt for separate insurance policies as that would be costing you much less. If you combine a high-risk driver’s insurance policy with a low-risk driver’s auto insurance policy, you would find that the move would upsurge the low-risk driver’s auto insurance rates. Funnily enough, when you are residing under one roof with your high-risk spouse there would be a negative impact directly on your auto insurance rates. If you wish to keep your auto insurance costs low, opt for driver exclusion.
The Bottom Line
In 90 percent cases, it would definitely be beneficial if you merge your vehicle insurance with your spouse’s. It is a good idea to take a certified defensive course in driving which may allow automatic discounts or facilitate negotiations.