Why Your Marital Status Matters When Applying for Car Insurance

Auto insurance policy

Are you single, married, widowed, or divorced? This is one of the common questions that you will hear when applying for car insurance. We often don’t think much when someone inquires of our marital status. At the back of our head, we think of it as a standard procedure needed for reference’ sake.

Some of the factors that can affect auto insurance rates in Addison are your age, gender, location, driving history, years of driving experience, credit score, insurance history, vehicle type, vehicle ownership status, and coverage level. But did you know that your marital status can affect your car insurance rate?

A study conducted in 2015 shows that single, separated, divorced, and widowed drivers often pay for a high car insurance policy than those who are married. What does it mean? It seems that tying the knot has a surprising perk: lower car insurance rates.

Married drivers and car insurance rates

It may come as a surprise that drivers who are married get to enjoy lower rates when applying for car insurance. What does your marital status have to do with how much you have to pay? Insurers think that it makes perfect sense to offer such perk to married drivers. There are three reasons for this:

Married people are often homeowners

When you’re a homeowner, it is already given that you have home insurance and life insurance. This gives insurance companies the idea that you are more likely to buy more insurance policies if they offer more than a single kind of premium.

Married drivers have lower driving risks

Couple in a carOne surprising reason married drivers get lower car insurance rates is that insurers perceive married drivers to be more responsible and careful drivers. If you think about it, marriage does have an impact on our decision-making skills. Insurers believe that married drivers tend to drive more carefully than their non-married counterparts. Non-married drivers are also more likely to be involved in a lower number of accidents than those who are currently married.

Married couples can combine policies for discounts

When you combine your auto insurance with your spouse’s, you can receive discounts. Let’s say that you and your spouse have bought car insurance from a single insurance company. You get the option to combine your policies. This is a good idea only if both have good driving records.

When combining policies is not an option

We already mentioned that you get to enjoy discounts when both have good driving records and you choose to merge policies. However, if your partner is a bad driver, it’s best to have a separate car insurance policy. It’s a good idea not to add them as a secondary driver on your list. Take note that your spouse can’t legally drive your car. They won’t also be covered under your insurance in case they do drive it and cause damage.

This only goes to show that your marital status can have more impact on your financial life than you might think. You have the option to merge car insurance policies. But take note that this only makes sense if you both of you have good driving records.