Marital Status and Car Insurance

Marital status is one of the factors insurance companies use to determine a policyholder's premium. Insurers often charge lower premiums for married individuals than single drivers of the same age and gender.

Why Do Married Couples Get Better Rates?

People who are married typically qualify for lower rates because industry research has proved they file fewer claims AND are less likely to be in an accident. The statistics also reveal that driver who never been married have twice the risk of being involved in an accident resulting in injury.

For these reasons, married couples could save as much as 21 percent, on their car insurance premiums. Some insurance carriers offer domestic partners coverage, which provides similar benefits.

Buying Auto Insurance after Marriage

After getting married, you should evaluate the best way to handle auto insurance coverage for your household. Based on your individual driving histories, you need to determine whether you and your loved one will save more money by combining policies OR keeping them separate (combining could qualify for a multi-car discount).

While your marital status is a major factor insurance carriers use to decide car insurance rates, driving history and other criteria are also considered. If you and your loved one have poor driving records, combining policies may cause a rate increase, higher than the marriage discount.

Other factors include:

  • The year, make, and model of the vehicles you both drive.
  • Where you live.
  • The number of miles you drive each month.

If you decide to combine policies, make sure to shop around to find the best car insurance provider for your circumstances.

Effects of Divorce on Car Insurance

Just as getting married can change your car insurance rates, divorce could also affect the cost of your premiums. Many insurance companies place divorced and single individuals in the same payment tier.

Couples who are recently separated may not have to make immediate changes. If you are divorced or separated for an extended period, you will not be eligible for the applicable martial discount. You will also lose multi-car savings and any other discounts associated with you combined policy.

The premiums may also change based on:

  • Your new address.
  • Commuting patterns.
  • Your financial situation.
  • Which former spouse has custody of children, if applicable.

If you get divorced, it's important to separate you car insurance coverage, especially if your ex-spouse has a poor driving record. There are several steps that must be taken to separate an auto insurance policy following a divorce. This includes splitting vehicle titles into individual rather than joint ownerships.

Always Follow Up with Your Insurance Company

Whether you have experienced the loss of a loved one or are planning to marry or divorce, you should contact your insurance company and update your marital status. Any change in your living arrangements requires a review of your insurance policy.