·  Legal News, Analysis, & Commentary


Marriage and Auto Insurance Have More in Common Than You Think

— April 1, 2020

Car insurance and marriage have the final and most important thing in common: they are both reliable. Regarding difficulties, they are meant to be there through better or worse and come to help during bad circumstances.

Notwithstanding what old married couples who argue about everything might think, relationships have countless benefits. Science states that relationships make couples healthier both physically and mentally. Studies show that partners are less likely to develop dementia, cancer, heart diseases, and depression. 

There is a common misconception that being married is expensive, and this can be particularly true for taxes. However, marriage has commonly untold financial benefits. 

A great economic privilege that comes with marriage is lower auto insurance rates. This is especially accurate for younger couples who benefit from a 20% discount and above. This is because insurance companies consider driving history a significant part of the premium but other factors like age, marital status, and location are also contemplated. 

Usually, higher risks for claims and accidents can become expensive for the insurer, and those premiums are higher. Since younger male drivers represent a high risk for accidents, they have to build a clean record. However, whether single or married, young males have to work hard to start to gain benefits. Single drivers work to earn claims-free driving discounts and married ones just for a claims-free night out with friends. 

Surprisingly, statistics reveal that married couples are less than twice as likely to get into an accident. At least, a car accident. There is a chance of getting to the ER with head trauma for spending savings on custom wheels when someone was not informed. Regardless of this accident, low risk comes from wives who keep asking to slow down and buckle up, or because there are children inside the vehicle needing a cautious driver, which is an appealing behavior for the insurer. 

Having a more stable life can be boring for some, but insurance companies choose low risks to gain more profit. Car insurance is similar to marriage in many ways. It is a bold statement but the following is evidence sustaining that observation.

  1. Combining Assets Can Become an Advantage

As with other practices, sharing a policy means saving money. From the cost of certain coverage to dinner expenses, splitting costs is beneficial for finances. Furthermore, to maintain a single policy rather than two has many benefits, like better management and special discounts.

  1. The Partner’s Record is Important

Couples are often curious about each other records. However, in the matter of driving, a clean record could be beneficial. If one of the drivers has previous violations or accidents, the other’s clear history may lead to getting a more competitive rate. While some states/companies do not recognize the rights of gay couples beyond what the federal government has mandated, some insurers like Allstate and State Farm, offer discounted rates for either straight or same-sex couples with clean records.

  1. It is Not Always Perfect 

Progressive and many other insurers make married couples cover each other automatically unless living in separate houses. Being covered when driving each other’s cars allows running those errands without any consequence. Well, there is a little risk of arguing after changing each other’s driving setups!

Man driving car during daytime; image by Art Markiv, via
Man driving car during daytime; image by Art Markiv, via
  1. A Single Solution

Marriage requires finding a common point or a solution to problems together. This makes problem-solving easier and faster. Bundling is efficient and insurers know it. This is why some companies offer a multi-car insurance discount after merging two or more vehicles under one policy.

  1. Sometimes It is Better to Forget the Ring

Despite reducing auto-insurance premiums, combining auto insurance is a thing to contemplate. Newlyweds should not merge policies right away. It is important to take into consideration the fact that if the secondary driver has a driving record that could negatively affect the premium, it might be better to avoid the merging of the policies. Moreover, other situations including moving to another residence or higher commute times, which negatively affect the insurance rates. Therefore, it is wise to examine the whole picture before making a decision.

  1. At Least One Thing Stays After Divorce

Insurers handle divorces differently. Some of them make the primary policyholder stay with the principal policy. Then, the second named insured gets an individual policy. Still, regardless of the insurer’s management of the divorce, losing the multi-car discount and low-risk discounts is a sure outcome.

Most carriers will be glad to combine married couple’s coverage into one policy. This can become a big money-saver strategy for couples, especially for younger ones. However, a single auto insurance quote might not always be the best way to go. 

On the other hand, car insurance and marriage have the final and most important thing in common: they are both reliable. Regarding difficulties, they are meant to be there through better or worse and come to help during bad circumstances. Certainly, sometimes it can be costly and hard, but the many benefits surpass the problems. Exploring the unknown with someone there who for sure will take care of you when the struggle comes is an invaluable promise.

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