When you’re thinking about your wedding day and the following honeymoon, it’s unlikely that the word “insurance” even crosses your mind. Paperwork is not romantic at all. However, reviewing your and your new spouse’s insurance policies shortly after getting married is a good practice. And our Carroll County insurance agents are here today to explain exactly how marriage affects your insurance rates.
Why Marital Status Matters to Insurance Companies
When you initially applied for your health, auto or life insurance, you probably filled out a form where one of the questions was about your marital status. Why do insurance companies need to know this? You see, most insurance providers consider marital status one of the risk factors that helps determine your premium.
Marriage is typically a good thing in the eyes of insurance underwriters. Depending on the specific type of insurance, there is usually statistics and research to back these claims. For example, multiple studies have shown that married people are generally less likely to develop certain health conditions, such as pneumonia and cancer. This makes these people low-risk candidates for health insurance. When it comes to driving, single people tend to be more reckless (and therefore cost more to insurance companies) than married couples. To put it simply, marriage is a responsibility, and responsible people tend to get lower insurance rates.
Which Policies Are Affected
Car Insurance
Bringing both of your vehicles under the same insurance company and the same policy often allows you to reap many benefits.
Life Insurance
Your life insurance policy should be updated after you get married. Your combined income and debt might have changed, so it’s worth sitting down with your Maryland life insurance agent to discuss how this affects your premiums.
Health Insurance
If both of you have health insurance fully paid for by your employers, then there aren’t any significant changes you should worry about. However, if either of you pays for health insurance, you should check whether adding the paying spouse to the other’s policy will be more cost effective.
Homeowners Insurance
Needless to say, if both of you are homeowners, you can now sell the second home and eliminate one of the policies. If only one of you is a homeowner and another person is moving in, it may be necessary to adjust the contents insurance if your spouse brings over any valuable items.
How You Can Save
Many insurance companies drop rates or offer various discounts to married couples. Here are a few key savings you may expect:
- Discount for insuring multiple items under the same policy, such as having both of your cars under the same insurance provider.
- Discount for purchasing multiple policies from the same insurance provider, i.e. using the same company for your car insurance and homeowners insurance.
- Eliminating redundant or overlapping coverage.
What You Should Do
You and your spouse should gather all of your insurance policies and carefully review each one to find the opportunities for savings. It’s much easier if you have a local Maryland insurance agent to help you sort through all the paperwork. It’s important to note that combining your policies is not always the best thing to do. For example, if one of you has a bad driving record or an expensive car, this may negatively impact your combined car insurance rate. It’s also a good idea to look outside of the policies you hold and consider other options. You may find better coverage at a lower cost from a different provider neither you or your spouse currently use.
If you need assistance in sorting through your combined insurance portfolio, Freedom Insurance Agency will be happy to assist. One of our knowledgeable agents will help you compare rates and find savings you could have missed. Give us a call or contact online today.
