Let’s face it; people get married for all sorts of different reasons. Some people get married because they are genuinely in love and want to spend the rest of their lives together, some people get married because there’s an addition to the family on the way or – more likely these days – their children are starting to ask questions and want them to get married.
Some people choose to get married for financial benefits including taxes and shared expenses – but one thing which many people don’t realize could change when they get hitched is their car insurance premiums.
Now don’t get me wrong, I’m not for one minute advising anybody to get married to reduce their insurance premiums, I’m just saying that it is another potential hidden benefit of tying the knot.
So why does your marital status have any effect on your car insurance premiums? Simple enough question don’t you think?
When it comes to working out car insurance rates the insurance companies do nothing more than crunch numbers – they base their premiums on the likelihood of the each driver being involved in an accident thus increasing the risk of having to make a payout. A driver under 25 years of age with a poor driving record will have to pay more than someone over 25 years of age with a good driving record because they are much more statistically likely to be involved in an accident.
That’s where marriage comes into the equation . . . .
According to the insurance company numbers married people are statistically less likely to be involved in an accident than people who are not married. This might sound a little bit discriminatory to some people but the numbers do add up – a study in 2004 of 10,525 adults showed that unmarried drivers (those who never had been married) were twice as likely to be involved in accidents as drivers who were married. I suppose it’s all an extension of the “settling down”.
Anyhow, the fact remains that getting married can have a positive effect on your life, even as far as your car insurance premiums.
Combined Car Insurance Policies for Married Couples
This is another area where both parties can benefit from the marriage, by combining car insurance policies. This could lead to savings but it is certainly not a foregone conclusion. Let’s look at the evidence.
When you combine motor insurance policies the driving records of both parties will be taken into consideration which is fine if you both have a clean record but if your spouse has been involved in a number of accidents or accrued traffic tickets then the “other half” could actually see their premiums rise. Other times when it may not benefit you from combining policies is;
• If your other half drives a valuable classic car this could increase your insurance premiums
• If your other half drives a car which is much more expensive to insure than yours (there are some fabulous models at fiat downey)
• If your other half drives a lot more miles each day, month or year than you do
All of these things need to be taken into account but it’s a simple enough question to ask your motor insurance company when you are about to tie the knot . . . it really could make a difference to your monthly insurance premiums. It might even pay you to change the make and model of your car – take a look at OC Fiat for some great ideas.
