Everybody loves to save money, especially more than ever, with the highest level of inflation in years and the current economic state. For married couples, shopping for car insurance is a great way to save hundreds of dollars annually. You may not even be aware that you are paying way too much on your car insurance right now just because the wrong spouse is the primary named insured on your policy.
Good Credit Synonymous With Great Insurance Rates
When you have good credit, you get good financing deals on vehicles, homes, personal loans, etc. However, your credit score can also play a role in personal insurance policies for your home or vehicle, something most people do not know. The primary insured’s credit score often dictates the final premium with most insurance companies.
Although the primary insured is considered the policyholder, a co-insured or secondary person can be added to the policy and given the same rights as the primary insured. So really, there’s no reason not to use the spouse with the best credit rating to maximize the premium saving benefit that is rightfully due to the couple.
How Can Married Couples Lower Their Vehicle Premiums
Most people see marriage as a 50/50 relationship. It’s supposed to be sharing responsibilities, finances, affection, etc. However, they often never have the same credit score. That doesn’t mean it can’t happen; it’s just unlikely. Why would couples not have the same credit score if they share responsibilities?
It really can often extend to what happened before the marriage. For instance, the man declared bankruptcy after experiencing a financial setback, dropping his credit score. He marries a woman with a great credit score and puts her on the insurance policy. However, they can save themselves money by having her become the primary insured and him the secondary driver. This would help them to save hundreds of dollars a year and sometimes even more.
Should You and Your Spouse Attain Quotes?
If you both recently pulled your credit and know what your scores are, it could be a good idea to start looking around for insurance and attain quotes. You could find that your credit score lowers your rate with another insurance company.
If you’re unsure how your credit scores will compete against one another, it’s always good to find new rates. You’ll have to ask insurance agents to do a comparison quote, as it is not the standard among companies, and have them send you both quotes of who the better primary insured would be.
A concern people have is the effect getting quotes will have on their credit scores. While insurance companies will check your credit, they do a soft pull on your credit score. This kind of pull does not appear to lenders. Whether you get two quotes or 10, your credit score will remain unaffected.
Is It Worth Married Couples To Shop Around?
Since the market has been quite crazy the last few years, it would be wise for a married couple to look at their policies and see if the other spouse would be better suited as the primary insured. Any savings you get by switching could help you pay for food, gas and everything else that’s increased in price.
The key is to get your car insurance quotes from a good independent insurance agency that has access to multiple carriers. That way, they can do all the heavy lifting for you and compare amongst all the top companies in your region for the best rates and coverage. In many instances you can save up to 50 percent off your auto insurance. https://nyinsurancehub.com/personal-insurance/car-insurance/.
Do married couples pay more for car insurance?
Unfortunately, married couples do tend to pay more for car insurance than single people. There are a few reasons for this. First, insurers consider married couples to be a higher risk than single people, because they’re more likely to have kids and own a home. This means that they’re more likely to file claims, and those claims are likely to be more expensive.
Second, many insurers offer discounts for couples who insure both their cars with the same company. Married couples are less likely to shop around for the best deal on car insurance, so they end up paying more. Finally, some insurers simply view married couples as an opportunity to make more money.
How does married auto insurance work?
There’s no need to be confused about how married auto insurance works; the process is actually quite simple. When you’re married, your auto insurance policy will list both you and your spouse as drivers on the policy. This means that both of you will be covered by the policy in case of an accident.
In most cases, married couples receive a discount on their auto insurance rates simply because they’re seen as less of a risk by insurers. Keep in mind, however, that each insurer has different rules and regulations regarding discounts for married couples, so it’s always best to check with your specific provider to see what they offer. Also keep in mind that if you live in a state where Insurance companies are regulated by the state government.
Do married couples have to be on the same car insurance policy?
No, married couples don’t have to be on the same car insurance policy, but there are some benefits to doing so. Having both spouses on the same policy can often lead to a discount from the insurer, which can save you money. In addition, if one spouse has a bad driving record, it won’t impact the other spouse’s rates as long as they are on separate policies.
There are also some drawbacks to being on separate car insurance policies as a married couple. If one spouse is in an accident, the other spouse’s rates could go up because of the shared household policy. And if one spouse cancels their policy or lets it lapse, the other spouse could be dropped as well.