You probably don't want to marry just so you can lower your auto insurance rates, but that's one potential perk of tying the knot. After your wedding, you and your spouse might qualify for reduced premiums. Here why, along with how to find out whether you qualify for better rates.
Couples Are Awarded Reduced Auto Insurance Rates
According to BloombergBusiness, married couples frequently receive lower auto insurance rates than their single peers because they're not as likely to be involved in an accident. There are a few possible explanations of why married drivers are safer on the road than single ones:
- People might naturally become less aggressive when they settle down and start a family.
- Couples may move out of cities to suburbs that have less traffic when they marry.
- Married drivers may be concerned for their spouse's safety and less likely to take risks.
Because married drivers are less apt to be in auto accidents than singles, they're also less likely to file claims against their auto insurance policy. Fewer claims lead to greater savings for insurers, which they pass onto drivers in the form of reduced premiums.
Auto Insurance Rates for Married People Vary
Just how much couples can save on their auto insurance varies. Just as insurers use many factors to calculate rates for single drivers, they also consider many criteria when drawing up premiums for married drivers. Some of the other factors insurers consider include things like the following:
- a driver's state of residency
- a driver's age and gender
- a driver's personal driving record
Since auto insurance companies all weigh these factors differently, different companies will provide you with different quotes. In many cases, insurers will even factor in your marital status differently. BloomburgBusiness showed married people paid anywhere from 8 to 22 percent less for auto insurance.
While any savings is helpful, especially for newlyweds just starting out, a 22 percent savings is much greater than an 8 percent savings. DMV.org lists the national auto insurance rate at $900 annually. If you're paying this much right now, an 8 percent reduction would save you $72 each year. Lowering your premiums by 22 percent, in comparison, would yield a savings of $198 every year. That's a $126 difference that will add up every year you're married and have auto insurance.
Independent Auto Insurance Rates
The easiest way to find the best auto insurance rates for you and your spouse is to contact an independent auto insurance agent. There are two types of auto insurance agents: ones that work for an independent agency and ones that work for an auto insurer. It's especially important to make sure the agent you contact is independent.
Insurance agents that work for an auto insurer are only able to quote you rates that their employer offers. They can check for a marital discount for you, but they can't show you how that discount compares to other insurers' offerings.
Independent insurance agents don't owe allegiance to a specific insurer. They're independent. They have the freedom to get you quotes from every insurer that offers coverage in your area, so you can see just how much each company will discount your auto insurance rates once you're married. They can also sign you up with the insurer that offers the largest discount, making the entire process simply and easy for you.
If you're either recently married or about to get wed, contact an independent auto insurance agent shortly after your wedding. Tell them the good news, and ask if they can help you find the better auto insurance rates now that you've tied the knot. Chances are, they'll be able to find you a policy that will save you money, hopefully as much as $198 each year. For more information, contact a company like Northeast Insurance Agency.