When you get married or even when you are living together you will be looking at many expenses together and join forces to reduce them. Then you would be happy to know that there are ways to bring down your overall premiums. You need to look at your options in line with your personal preferences and see what would be the best arrangement now that you are sharing your life with another person.
Statistically speaking married people cause a lot fewer accidents and therefore considered to be safer drivers. Having someone else in your life and especially being a parent probably makes people think twice before they engage in risky driving practices. Whenever the risks are lower this generally translates into lower premiums as well in the world of vehicle insurance.
First of all you need to inform your respective insurers that you are now living with another driver in the same household. Companies want to know if there is another driver in the same house regardless of them being related to you or not. You are likely to be noted in each other’s policies as the other drivers. This could affect the premiums positively or negatively depending on driving records, experience and age.
If you both have good driving history, no lapse in your policies and no recent claims you are likely to save a lot of money by combining your policies rather than keeping them separate. Multi-car policies can be really economical. In that case, you can get quotes from each carrier if they are separate as well as checking other providers to find the best deal. Cheap Auto Insurance.net is a good site to get several quotations and look at your options properly.
If you want to keep separate policies you can still save money by moving both policies to the same company. If one of you is getting great deals the same company can offer similar discounts to another member of the family. If you want to keep things separate for whatever reason you can still benefit from good records kept by your partner.
What If One of You Have Bad Driving History?
When one of you have poor driving records or bankruptcy in his/her name this could have a negative effect on the other partner’s or on a joint policy premium. The fact that a bad driver has access to your automobile keys has to be taken into account by your carrier and premiums adjusted accordingly. However, this could be dealt with minimum damage.
Providing state laws allow and your insurer agree you could exclude the partner with bad records from the other’s coverage. Generally, there are two requirements before this can be considered. The person to be excluded must have his/her own car and policy coverage. Exclusions work both ways. While they allow you to get lower rates they protect the company against claims. In other words, the company wouldn’t pay for any damages and injuries caused by an excluded driver.
Legal Consequences of Owning Joint Vehicle Insurance Policies
You need to know that the term “joint” has significant legal meaning. If any one of you causes injuries and damages as a result of a vehicle accident your insurer would get involved and pay for them up to your policy limits. However, third parties with losses can sue any one of you or both of you regardless of who was driving at the time. In other words, you are jointly responsible for any claims brought against any one of you.
Divorce and Automobile Insurance
Unfortunately you will need to separate your policies as well when you get divorced. If you have teenagers on your joint policies they usually go on the policy of the parent who keeps them. When you have joint custody or children are spending time and have access to the cars of the other parent you need to talk to your insurer or broker about it.
There are a few points to consider when you are with another person. You should spend a little time to look at your options in order to maximize the benefits and reduce the negative effects. Normally, you would need to do this once and keep benefiting from new policy arrangements year after year as they get renewed.