Getting married this summer? You’re probably up to your ears in decisions. Do I need a seating chart? Who’s going to watch the dog during the honeymoon? What’s a “backup” boutonniere? As if planning a wedding weren’t stressful enough, you and your partner likely have a handful of financial questions on your plate too. Sure, you may already know that getting married could impact how you file your taxes and set up your bank accounts, but did you know that your new union could also impact your auto insurance policy? At Direct Auto & Life Insurance, we may not know who’s going to watch your dog during the honeymoon, but we DO know about car insurance. Take these steps to see how getting married could impact your auto insurance.
Step 1: Learn how your rate is determined
There are many factors that could impact the price of your insurance, including your risk of getting into an auto accident. Strangely enough, being married could reduce your risk of an auto accident (and your premium).
A widely cited study from 2004 reported that married couples are less likely to be injured in an auto accident than their single counterparts. According to this study, singles are twice as likely to get into a car accident than married car operators. Some insurance companies view married couples, and particularly married male drivers, as relatively less riskier to insure, which could lead to a more affordable car insurance rate.
However, marriage status isn’t the only factor insurance companies consider. Also on the table is you and your partner’s driving history, the make and model of your vehicles, and even your credit score. While the two of you may enjoy lower rates or discounts for being married, having joint policies, and insuring multiple cars, that low rate could take a hit if one of you has a spotty driving history or poor credit.
Pssst! Thinking about excluding your partner from your auto insurance policy? Read this before you do!
Step 2: Talk with your partner
This part could get tricky. Relationship expert Dr. Amy Wenzel suggests taking a collaborative approach when bringing up a tough subject related to finances.
“Don’t drop a bombshell on your partner and demand that he or she answer you at that very moment,” Wenzel advises. Instead, calmly tell your partner that you’d like to talk about your financial future and agree on a time to discuss it together. Sounds like dinner date!
Apart from which appetizer and dessert combo you’ll be sharing, talk about both of your driving histories, credit scores, and how you budgeted for car insurance in the past. Also, talk about the possibility of maintaining separate car insurance policies. If one of you has a less-than-glamourous driving history (and hey, no one’s perfect), separate policies could ending up costing less after you’ve “jumped the broom.”
Wondering what else you should “do” after you’ve said “I do?” Download our helpful Post-Wedding Checklist for an easy entrance into post-wedding bliss!
Step 3: Review your options with your insurance company
When you and your partner are ready, give us a call at 1-877-GO-DIRECT (1-877-463-4732) and an insurance agent will chat with you about your options. Tying the knot could come with the added bonus of spending less on your car insurance coverage! No matter what your post nuptial financial situation looks like, say “I do,” to affordable auto insurance from Direct Auto & Life Insurance.
*Material in these articles is for general information or entertainment purposes only. Direct General does not endorse and is not affiliated with any of the other companies or apps listed in this article. Direct General is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners.