Just Married? Time to Compare Auto Insurance

January 25, 2017

getting married lower car insuranceYou know that you’ll see tax savings when you’re married, but did you know you may pay less for car insurance too? Your savings may not pay for the catering bill from your wedding, but it’s definitely worth getting an insurance quote comparison for you and your spouse. Here’s how to do it.

Why does getting married lower your insurance premiums?

From an insurance company’s perspective, married people are safer, more responsible drivers and thus less of a risk to insure. It seems strange that putting on a ring will magically make you a better driver, but it’s statistically fact. A 20-year old woman pays 22 percent less for car insurance, on average, if she’s married. A 20-year-old man pays 20 percent less if he’s married.

Here’s another reason to compare car insurance if you’ve just tied the knot. If you’ve been with the same auto insurance company for a long time, they may nudge up your premiums.

The name for this practice is price optimization — and it benefits the insurance company, not you. “Customers who’ve been with the same insurance company for 11 years or longer have had so many gradual rate increases that they save an average of $426 on their premiums when they finally do switch,” USA Today reports. Yikes. That’s why it pays to get an insurance quote comparison.

How do you compare auto insurance quotes once you’re married?

  1. First, figure out how much you and your spouse are paying separately for car insurance.
  2. Review your coverage limits. If your policy matches the state minimum requirements, you may want to raise the limits to protect your new family’s financial future. For example, A $20,000 limit on personal injury protection won’t go very far to pay your medical bills if you’re involved in a serious accident. Here’s a rule of thumb from the Wall Street Journal: “Make sure you’re covered for an amount equal to the total value of your assets (Add up the dollar values of your house, your car, savings and investments).”
  3. How many cars do you and your partner own? Many insurers offer a multi car discount for households with more than one vehicle.
  4. Get quotes from multiple carriers (or use compare.com) to compare multiple auto insurance rates. You’re going to find a cheaper rate if you compare many insurers.

What if your spouse has a bad driving record?

If your partner has several traffic violations or a DUI, car insurance might become more expensive after you’re married. Nevertheless, it will still probably be cheaper to insure both you and your spouse with one policy. The best route to take is to compare both options with several carriers.

All drivers in a household can access all cars, so most insurance companies will require notification of licensed drivers in the household. Some insurance companies will opt for a named-driver exclusion if your spouse has a particularly bad driving record. A named-driver exclusion specifies that your spouse isn’t covered and isn’t permitted to drive your car.

Here’s the good news: You’re married! You can now work together to improve your spouse’s driving record. Driver education classes are one way to reduce insurance premiums. Another option is to have your spouse drive the oldest, cheapest car in the household.

Remember that you’re together for the long haul, and eventually the points will drop off your spouse’s record. How about a cross-country road trip for your 10th anniversary?

Ready to get your free insurance quote comparison? It’s easy and takes just minutes on Compare.com.

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You could save up to 32% by using Compare.com!

Based on a survey of 100 California Residents. Average savings determined via a comparison of their selected policy against their self-reported annual premium.