With June right around the corner and the month of weddings, you may be starting to think about combining your households for after the big day. Part of this process is combining bank accounts and bills. You may wonder if you should combine your car insurance policies as well or keep them separate.
Save Money with Your Married Status
Most of the time, your Salt Lake City car insurance rates will be cheaper if you’re married than if you’re single. That’s because statistics show that married people are a lower risk for accidents and claims. Even if you don’t combine your policies, if you are listed on your current policy as married when you renew, it will probably save you some money.
Save on Multi-car Discounts
Most insurers offer discounts for multiple cars, so if you and your spouse have your own vehicle with the same insurance provider, you’ll probably see a drop in your premiums. You’ll get the most benefit out of this discount if both have you have good driving records.
Insured to Drive Each Other’s Cars
If you keep separate insurance policies, you’ll have to add each other as an extra driver to ensure coverage in an accident. However, if both of you have a policy with the same provider, you’re likely to be covered to drive each other’s cars anyway.
Consider Who is the Primary Driver
To save the most money, you’ll want to think about who to list as the primary on the insurance. The person with the best driving record and best credit score will get the best rates. It’s the primary that is checked by the insurance companies when determining premiums.
When It Doesn’t Make Sense to Combine Policies
While it seems pretty obvious that you’d benefit from combining your car insurance policies, it’s not always the best idea. If one of you have a bad driving record or other issues such as a poor credit score, you may want to keep your policies separate. If the person has had issues in the past and is limited on where they can get insurance, they may need to stick with their provider while you look for the best rates with yours.
Excluding Your Spouse
You may be able to exclude your spouse from your car insurance policy if they have a bad driving record. This means they won’t be able to drive your car, but your rates will be lower. Otherwise, you’ll end up paying a higher premium because the insurer has to provide coverage for a high-risk driver. If you do choose this route, just know that you’re responsible for any costs if you let your spouse drive your car and they get in an accident.
Amidst all the excitement about your wedding day and honeymoon, you must think about the practical side of being married. One of those aspects is in how you will combine your bills and assets. It’s important to understand how car insurance in Salt Lake City works so you know if it’s a good idea to combine policies or not.