Should Newlyweds Combine Car Insurance Policies?

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There are a million and one decisions to make when you're getting married. Besides deciding who will sit with weird uncle Harold at the reception, you find yourself besieged with every possible altercation to your reality. So, considering whether or not you should combine auto insurance policies with your beloved is not likely to be at the top of your "to do" list.   
However, after the wedding and the honeymoon, when you are safely ensconced in your love nest together, one of the things you may want to consider is saving money. One way to do that is to combine your car insurance policies. Will combining your policies save you money, most of the time, the answer is YES! Give your insurance agent a call, explain that you are now married, and discuss ways to save. You will be delighted to learn that you can save up to 15 percent over what you are currently paying for car insurance just by combining policies. 

Ways To Save

It makes sense that insurance companies will find you a better risk if you have settled down and gotten married. For one thing, according to statistics, married couples are less likely to file a claim than single people. Your car insurance rate will drop because you are married, and you can save even more by combining the two cars you drive into one policy. You will get something called a "multi-car insurance discount." 

As Flo says on the Progressive Insurance commercials, "bundle and save on home and auto insurance!" Talk to your agent about bundling together your renters or homeowner's insurance, as well as insurance policies you have on your boat, motorcycles, and RV. Gosh, you've got a lot of toys! Bundle insurance plans together and save some dough. We're talking about a bundle discount of up to 25 percent in savings. 

The main thing is to make sure you both have a clean driving record and no gaps in insurance coverage. Even if you only have one car together, you'll still save money by combining your car insurance to cover both drivers. 

About your Credit Score

Most folks don't realize that your credit score affects your car insurance rates. So does your payment history. In many states, insurance companies use your FICO score to help them determine your rate. If you or your spouse have a poor credit score or have had a number of speeding tickets, you won't save as much by combining insurance. Makes sense, right? So, the first thing to do is to get a quote from your agent on placing two drivers on one policy. Whichever of you has the best credit score should be named as the primary person insured on the policy. That way, the insurance company will use your good score to set the rate. 
Not all states are allowed to use your credit score as a rating factor. For instance, California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, Utah, and Washington State do not allow this practice. As a result, your credit won't impact your ability to get or renew a policy, or how much you pay in premiums. In such a case, the person with the best driving record should be named as the primary insured. 

Another factor involves the value of the cars you are insuring. Vehicles that are over ten years old have a big drop in value. If you drive an old car, you may want to drop your collision coverage or raise the collision deductible to save money. Keep in mind that insurers think of married couples as more financially stable and just less risky to cover. 

Married Couples Cheap Insurance

You can save several hundred dollars a year just by switching car insurance companies. State Farm offers the cheapest rates overall, followed by Progressive and then Geico. If you or your spouse are retired military, USAA's insurance will save you, big time. Switch insurance and save. 

Rates for married couples also change depending on the state you live in. The cheapest state for car insurance is Maine, where couples on average pay $1,188 per year. Other low dough car insurance states include Alaska, Idaho, Hawaii, Arkansas, Alabama, Indiana, Iowa, Tennessee, Wisconsin, and California. The most expensive state for car insurance? That would be Michigan, where couples pay over $9,000 per year on average. 
Other ways to Save 
When thinking about lowering the amount you pay for auto insurance, there are a number of ways to save. Regardless of your age, married couples can save on insurance by paying an annual premium instead of monthly or quarterly. You can also save money if you elect autopay, or if you are a homeowner, work as a professional or are in the military. When it comes to your car, you'll save if you have a new car, an anti-theft device, anti-lock brakes, passive restraint, daytime running lights, and if you are a defensive driver. 
  
Meet with your insurance agent to review your policies and see how much you can save by combining policies. Don't forget that your age, where you live and work all play into what you will pay and be sure to get quotes from several companies to get the best deal.Â