Car insurance for unmarried couples
The definition of a couple and family has shifted dramatically since its inception. As a result, insurance companies are offering a variety of policies to keep up with today's ever-changing world. Whereas it was unheard of fifty years ago for an unmarried couple to be on the same insurance policy, joint car insurance for unmarried couples is now common. Even though this is not uncommon, there are a few things that couples should be aware of before tying the insurance knot.
Can you be on the same insurance plan if you are not married?
Previously, unmarried couples were not permitted to be on the same insurance plan because they lacked “insurable interest.” The definition of insurable interest is ownership. Unmarried couples were not considered to have mutual ownership of one another's property and thus could not share a policy. However, as the definition of families and couples has evolved, things have changed.
You have options these days. Many insurance companies offer unmarried couples car insurance under the following brand names:
- Domestic partner insurance
- Non-married insurance
- Non-relative insurance
- Roommate insurance
Getting insurance together won't be difficult if you live in the same house. In fact, some laws or insurance companies require people living in the same household to be on the same insurance policy.
What do you need to combine car insurance policies if you are not married?
Most insurance companies that provide coverage for unmarried couples will require proof that you and your partner live at the same address. The simplest thing you can do is make sure you and your partner have the same address on your driver's licenses. If you have only recently moved in together and have not yet updated your license, you may be required to provide a copy of your lease or bills to the insurance company. Other documents you may require include tax returns and pay stubs.
In general, an insurance company will only require proof that you and your partner live together. Financial documents and bills are the most conclusive evidence of this. However, each insurance company may have a different request.
What are the advantages and disadvantages of combined car insurance?
Getting on the same insurance policy as your partner has advantages and disadvantages. Before proceeding, ensure that you understand both sets, as well as any relevant rules or laws that may require you to be on the same policy.
Advantages of combining car insurance
Aside from only having one payment to make and being able to share each other's cars, there are a few other benefits to being on the same policy:
- Potential discounts: Assuming you both own a car, you may be eligible for a multi-car discount with the provider. This is significant because multi-car discounts are frequently the largest savings offered by an insurance company. One of you may also be eligible for a discount that the other does not have.
- Better rates: Car insurance companies almost always charge couples less than two people insuring separately. According to some studies, unmarried drivers are more likely to be involved in an accident, and two people with earning potential appear to be more likely to be able to pay the bills. Couples are said to file fewer insurance claims than individuals on average, according to statistics.
- Easier to manage: Managing one policy is often easier than managing two.
Disadvantages of combining car insurance
There aren't many drawbacks to insuring together, but keep the following in mind:
- If your partner has a poor driving record, it may be more expensive: Insurance companies classify drivers who have a history of speeding tickets, accidents, or DUIs as high risk. A high-risk driver may pay twice as much (or more) than a driver with a clean driving record.
- If you split up with your partner, the bill may become complicated: Even if you don't want to think about breaking up with your partner, it is a possibility. If you do, you'll need to get separate insurance policies and decide who is responsible for paying the bill and how much each of you should contribute to the overall cost.
When should you consider combining car insurance?
When the following situations arise after an unmarried couple has moved in together, they should consider getting on the same policy:
- You both drive each other's cars.
- You have no intention of pursuing another relationship.
- You might be eligible for a multi-car policy discount.
Frequently asked questions
Is there a set amount of time that insurers require a couple to be together before they will provide unmarried car insurance?
No. There is no way to accurately verify this without invading a person's privacy, and sometimes people are required by company policy or law to get on the same insurance policy within a certain time frame after moving in together.
Is it possible to add a boyfriend or girlfriend to an insurance policy following an accident?
Insurance typically follows the vehicle rather than the driver, so a partner driving your car should be covered even if you are not on the same policy as long as you have adequate coverage. If you add them after the accident, they must use the policy in effect at the time of the accident. Adding them to a policy after an accident in order to obtain coverage for that incident is not a viable option.
To be safe, consult with an agent before allowing your girlfriend/boyfriend to drive your car. They will almost certainly ask if you live together and if he or she drives your car more than once a month. Answer truthfully so that you have the proper coverage if and when something happens.
Is it illegal to drive someone else's car?
No, it doesn't. Before allowing someone else to drive your car, make sure your insurer is aware of your living arrangements with your partner and that they have an up-to-date driver's license.