Car Insurance and Marriage: Updating Your Coverage

Article overview

The joy of marriage is the joy of starting a new chapter of your life with someone you love. You’ll be sharing a home and all the things that come with it, working together to plan for the future. It’s also an excellent time to review insurance policies.

• Lower rates for married couples: Married drivers often enjoy lower auto insurance premiums due to reduced risk factors like fewer claims and greater financial stability (e.g., improving credit scores, paying in full, etc.).
• Advantages of shared policies: Combining auto insurance policies can unlock multi-vehicle discounts, simplify billing and streamline household management.
• Potential drawbacks: If one spouse has a poor driving record or bad credit, a shared policy might increase costs. In such cases, separate policies may be a better option.
• Steps to update coverage: Newlyweds should contact their insurance agent to add their spouse, compare rates, bundle policies, and explore discounts for maximum savings.

When it comes to car insurance and marriage, combining your auto policies could be a smart way to unlock savings. You will be sharing a home and working together to create budgets and make joint decisions, making this an excellent time to review your insurance policies. Ensuring your coverage fits your needs as newlyweds empowers your financial decisions and helps you turn member benefits into big wins.

Is car insurance cheaper when married?

Yes, auto insurance is generally less expensive for married individuals than for single drivers, depending on the state you reside in. Although marital status is only one of many factors that determine your auto insurance rate, letting your insurance company know that you’re married is an important way to keep your policies and insurer up to date and to learn of possible discounts.

Why are auto insurance rates lower for married couples?

Insurance companies evaluate risk to calculate rates, and statistical data shows that married people are less likely to file a claim. Here are the main reasons married drivers benefit from statistically lower premiums than single drivers:

• Greater financial stability: Couples may generally exhibit increased financial stability, such as improved credit scores or the ability to pay in full, for example.

• Better discount eligibility: Couples are more likely to qualify for discounts, especially if bundling policies. Note that some states prohibit insurers from adjusting rates based on marital status.

What are the advantages of a shared auto insurance policy?

A shared auto insurance policy allows married couples with multiple vehicles to instantly qualify for multi-vehicle discounts. Furthermore, having a single insurer will help streamline your bills and simplify your household management.

If you and your spouse currently have auto insurance with different companies, request quotes from each insurer for combined coverage so you can transparently compare prices and service.

Are there any disadvantages to sharing an auto insurance policy?

Yes, adding a spouse who is a risky driver or has bad credit could end up costing you more than keeping separate policies. Separate policies are better suited for teams navigating one partner's poor driving record, while combined policies work best when both partners have clean driving records.

In rare cases, and depending on your state’s laws, you may ask your insurer to exclude your spouse from your coverage to keep premiums down. If you do this, they will not be covered if they drive your car.

How to update your auto insurance coverage after marriage

As you and your new spouse are exploring car insurance for married couples, here are some things to keep in mind:

Getting married does not automatically add your spouse to your policy; you must contact your insurance agent to formally add them.

1. Compare competitive rates: Shop around to compare rates and refocus your insurance so that it best serves your family's future.

1. Bundle your policies: Consider bundling your auto insurance with home insurance or renters’ insurance to take advantage of effortless savings.

1. Consult an agent: Work with your AAA Insurance agent to identify all available opportunities for rate reductions and do a needs assessment since your needs may have changed.

Married couples may qualify for cheaper insurance, but getting married does not automatically guarantee coverage of your spouse on your policy. You’ll need to get in touch with your insurance agent and formally add them.

Car insurance coverage that works for you

Marriage is an exciting time full of change and possibility. Your priorities as a couple may be very different from those you had when you were single, so it’s a good time to review all the ways your insurance can help protect what matters most. An experienced AAA Insurance agent can perform a free AAA Triple Check (not available in Colorado) auto and home insurance policy review to ensure all your coverages align with your needs.