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Marriage Discounts

Marriage discounts vary based on company but usually average around 10-15%. The discount can be more pronounced for couples under 30, where rates are higher. It depends on how the insurer defines "responsibility." Some carriers will give you a marriage discount immediately, some carriers like Geico, don't care if you're married or not, no discount.

On the other hand, some insurers will even give you a discount for unregistered domestic partnerships (shacking up). Some carriers like AAA, State Farm and Farmers, want you to be officially married. In several states a common law marriage is defined as living together for either 7-9 years and representing yourself as married.

Gay marriage anyone?

In the states that allow gay marriage, the biggest two U.S. insurers, State Farm and Allstate, give a marriage discount same-sex married couples. Esurance provides a lower rate in California, Illinois, Oregon and Washington. The states below have approved Same-Sex Marriage:

• California
• Connecticut
• Iowa
• Massachusetts
• New Hampshire
• New York
• Vermont
• Washing DC

States that to approve of civil unions (with a religious or civil ceremony):

• Delaware
• Hawaii
• Illinois
• New Jersey
• Rhode Island

States that allow domestic partnerships (which just require registering the partnership):

• California, pending appeal on same-sex marriage
• Nevada
• Oregon
• Washington

Shopping doesn't always = savings

If your carrier doesn't honor the marriage discount, pause before switching insurance carriers. Insurance companies can penalize you, if you cancel before the policy has expired. Known as a short rate penalty. It usually only around $50, but it can be annoying. Try and time you're switching for when your insurance policy renews.

Some insurance carriers have customer loyalty discounts. If you leave you present carrier, and may take 1 to 5 years for you to earn another loyalty discount at your new carrier (should they offer one).

Thanks to Prop 103 in California, you'll qualify for the safe driver discount after 3 years with no tickets or at fault accidents. But to keep "enjoying" the discount, you have to stay with the same insurance company. It's not transferable.

Never fear, there is a finite market of car insurance shoppers, they're all fighting to earn your business. to shop in earnest for car insurance, with multiple carriers take several hours. Not the 15 minutes Geico promises, unless you are only going with them. FYI, Geico has average to higher prices (according to my comparisons and JD Powers), but because of the commercials touting price, many think Geico is the cheapest.

Multi car discounts

Marriage aside, you can still save money with the closely related multi car discount, once you can consolidate all insurance policies in the household. You'll find that multi car is a great way to save an easy 15-25%! And almost all insurers honor it, since covering more cars mean more business. Plus it's nice sending 1 bill instead of 2.

And since you just got married, here's another tip: Let the wife pay all the bills! They have a longer life expectancy, and when the husband dies sooner (odds are against us!), they wife won't be lost. I always have my wife handle our finances (which she's better at anyway), in case I do a Jack Ritter. Just thinking ahead.

Multi-policy discounts

Not only can you save on marriage and multi vehicle, but when you get married, you may qualify for a multi policy discount, usually home and auto. But there are also life and auto, renters and auto, etc. again depending on your carrier.

I know I have the best combination of home and auto insurance, since I shopped extensively, and even combined, I cannot get cheaper coverage. I have a separate homeowners insurance policy (California Capital) with a different company than my car insurer (Ameriprise).

Bad Driver = No Survivors?

Now let's say your spouse has a bad driving record, you add him or her to your policy, and your rates go up! Your car insurer may not like the new drivers risk profile. Let's say you call the insurer and inform them of your new official love, and they have tickets and accidents on their record. The insurer may even cancel you, or send you an excluded driver form to specifically not cover them. They study years of their own claims data to evaluate future claims. Insurers hate bad bets.

Incidentally, aggressive driving can be an indication of pent-up anger, frustration, or other unaddressed problems. If your partner has a horrible driving record, DUIs, accidents, find out the story behind the story. It's hard to round a square, and if your new love and your insurer aren't a good fit, put your zip code in the beige box at the top and shop around.

As long as your husband or wife has a decent driving record, you should call your insurer right away and have them added to the policy, at least for the (potential) discount. You might call and say "I might get married, what would that do to my rates?"

Split limits

If one of you have an older car, explore a liability only policy. Chances are the insurer won't give you much for it, but don't forego uninsured motorist and maybe theft, if you don't have the funds to replace it. If as a couple, you have a newer car (possibly not paid off), in your spells a beater, you'll have to go with an insurance company that allows you to split limits. This means you don't have to carry duplicate coverage on all vehicles.

If your insurance carrier insists on duplicate coverage, ask if you can vary the deductibles on each car. If not, that's why God created the Internet for shopping multiple car insurance carriers. with your insurance company does not cooperate, separate yourself from them like you would a sexual harassment scandal (sorry Herman).

Another reason to notify the insurance company and join policies, If you both live together and you get in an accident driving their car and you are not under the policy, the insurance company may deny the claim. It's better to have just one policy and have the each other as a named driver. him on, if you tell the insurance company you're married, and you're not, I could be considered insurance fraud or misstatement. Don't leave your insurance company a way out of paying for your repairs.

If you financed the car and the titles are in both your names, legally you both should be name on the policy as well. Technically, you may be in default if both of you are not named insured. You might get a call from the finance company, or when the insurer runs your VIN, the titling of the car may become an issue.

Got credit?

If your new soulmate has bad credit, and you live in a state that allows credit scoring, they could nullify your marriage discount (assuming there is one). California, Massachusetts, Hawaii and Maryland Van ban credit scoring for insurance purposes.

If you live in a community property state, your property could be attached if any of those creditors enforce a judgment against you and/or your spouse. There are nine community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

In review:

• Some carriers don't respect the sanctity of marriage;
• Multi-car discounts are for larger and more reliable;
• Multi policy discounts may help;
• Bad drivers may cost you; and
• Split limits to reduce coverage on your clunker.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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