When they marry, many couples find that the best and least expensive way to insure all their vehicles is to combine policies whenever possible and bundle different policies under the same account. And while this can be a great approach, it's not the only option. In some cases, maintaining separate auto insurance may be the better route. When should you consider this? Here are a few scenarios.
1. When One Has a Bad Record
Naturally, driving records have a big impact on the cost and availability of car and truck insurance. If just one spouse has a bad record, though, it can easily put a damper on options for anyone connected with their policy, packaged bundle, or account.
In this scenario, both partners should research whether the family can get a better overall deal by using separate policies. Specialized carriers can often provide better packages for riskier drivers than a standard insurer. Another alternative could be to exclude the poor driver from coverage on the other policy. This increases your personal risk, but it may work out well if you really never drive the other vehicle.
2. When You Have a Specialty Car
Did one spouse bring an exotic car, a sports or specialty car, or a project car into the marriage? Some vehicles (rather than drivers) are more expensive to insure simply because they present a higher risk or result in higher-than-average repair bills. And, as with a riskier driver, a riskier vehicle can increase rates for the entire policy.
There are a few ways to get around this inherent problem without getting rid of your precious car. You may find that a specialized policy package or less common insurer can provide a better rate for the exotic car alone.
3. When One Has Poor Credit
Driving records are the only background check insurance companies do. They also look at your credit history as an indicator of responsible and respectful behavior. Did one spouse struggle with bad credit prior to the marriage? If so, you may want to look into separating the two drivers' coverage. You may or may not, though, be able to list that person as an authorized driver.
Where to Start
No matter what challenges you face as a newly married couple, meeting them head-on is the best approach. Car insurance is a vital part of protecting your home finances, so don't let these obstacles or others put you at risk.
Meet with an auto insurance agent in your state today to learn more about different auto insurance packages.
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