Should You Have Separate Auto Insurance Policies For You And Your Spouse?
For married couples, there are some benefits to combining individual insurance policies into one plan. You may be able to enjoy discounts for the shared policy, and it may simply be easier to make one payment for your coverage every month. However, there are some situations in which it might make sense to maintain separate policies. Here is a look at some of the reasons you might want to keep your policies separate.
Some married couples choose to keep as much as their finances separate as possible. If you maintain separate bank accounts and pay bills separately, it might make sense to maintain your individual policies. This means you won't have to worry about how to split the cost every month, and you won't have to make changes to your current policy or update bank account information.
Poor Driving Record
If your spouse has a poor driving record, combining policies can make your premiums increase. Talk to your insurance agent about what the estimated new payment amount would be for a combined policy, and compare that to what you already pay separately. You may also want to get separate quotes from a few companies to ensure you are getting the best deal, no matter which type of policy you select. If you prefer not to allow your spouse to drive your car at all to keep your premiums low, you can maintain separate policies and have an exclusion put into your coverage. The exclusion will prevent your spouse from being covered if he or she ever drives the vehicle, so you'll want to make sure this is the right move for you as a couple.
Low Credit Scores
In some states, insurance companies can use your credit history when determining your insurability and premium cost. If you have great credit but your spouse has poor credit, your premiums might increase with a combined policy. Instead, you may want to consider keeping the policies separate and simply adding your spouse as a listed driver. This means he or she can drive the vehicle, but your spouse is not the primary driver. In some cases, credits scores for listed drivers may not weigh as heavily on your premiums.
Contact an insurance agency like Crowel Agency, Inc. before you get married so you can switch over your coverage as needed as soon as possible. Your agent can help you to determine cost and figure out the right options for ensuring you and your spouse are covered while on the road.