Can Saying I do Save You Money on Car Insurance
Getting married has its benefits, but most people don't know one of the perks is the possibility of saving on car insurance. As unromantic as it sounds, you could end up saving a lot if you can narrow down the right policy from the right carrier. Then who knows, you could use your savings for a weekend romantic trip for two!
The good news: there is a "marriage discount"!
Getting married is a milestone in life, signifying maturity and responsibility. For that reason, car insurers will lower rates for married couples. The implied maturity carries over into driving decision-making, they figure.
The amount of the discount varies from company to company, however. It also varies from state to state so it can be hard to get a real grip on just exactly how much you'll save by tying the knot.
Another way to save when you get hitched is to insure multiple cars on the same policy. Several big insurers can give discounts for that, too (but not all of them!).
The bad news: it's not for everyone.
But just getting married won't necessarily give you any discount at all. In fact, some couples see their rates increase after getting married!
That's because one of the drivers in a married couple could have a terrible driving record. The "couple" rates could very well end up being higher than a single person's rates.
You're only as good as your weakest link when it comes to marriage car insurance rates! The insurer will price your couples' policy based on the record of the spouse with the worst record, unfortunately.
Some unsettling news: widows sometimes pay more.
In a July 2015 study*, the Consumer Federation of America revealed that most major auto insurers are all over the map when it comes to their pricing and marital status.
Most noticeably, widows paid an average of 20% more for their insurance policies. The study looked at six major insurers in 10 cities and found that four of the companies increased rates for widows while the fifth sometimes did so.
The verdict: marital status causes car insurance rates to vary between companies...wildly!
In the study cited above, one company did not vary the rates at all when marital status changed. Even among the insurance companies who did consistently charge higher rates for widows, the amount of those increases varied significant from one insurer to another.
Once carrier, for example, increased the rates for widows anywhere from 0-226%!
The bottom line...
The thing to remember is: shop around and be sure you're not missing out on things like marriage car insurance discounts. On the flip side of that, make sure you're not actually being penalized, either, for something that's not even your fault! Careful comparison is the key to finding the right policy that provides the best value for your unique set of life circumstances.