How Does Martial Status Impact Your Auto Insurance Premium?

Does marriage impact what you pay for auto insurance? In some situations, the answer is yes. Auto insurance providers focus on risk. The more risk a person is, the higher the insurance costs. And, according to considerable data, married drivers are less risky. As a result, insurers may lower their car insurance premium. How and why does that happen?

Marriage and Car Insurance

Getting married means many of your financial decisions will change. You may decide to buy a home with your new spouse. You may be paying for twice as many credit cards.

However, when it comes to car insurance, marriage may mean lower insurance costs. It can actually save you money to update your agent with your new marital status.

Why Does Marital Status Matter?

In nearly every risk measurement, car insurance providers estimate the amount of risk a driver poses to them based on various factors. This does not just include marital status. It includes previous claims, moving violations, age, and the value of the car itself. 

To determine risks associated with these and other factors, insurers use data. They gather data from a wide range of sources. This data helps the agency understand who is most likely to cause an accident or face a reckless driving claim.

A wide range of data shows that married drivers are less likely to be in a reckless driving charge. It may indicate that these drivers are less likely to be in accidents or to file claims resulting from reckless behavior. As a result, premiums for these drivers are lower. Insurance companies won’t have to charge as much because the drivers equal a low cost risk to them.

Bundling Helps, Too

If you and your spouse both own vehicles and drive, it may be ideal to bundle both car insurance policies. This means you turn to one insurance company for policies on both vehicles and for both drivers. As one package, the combined insurance cost is likely to be lower than if you bought two policies. This is another way to save money overall.

If your marital status changes, be sure to let your auto insurance agent know. This information can impact the discounts and rates you pay. Be clear and upfront about your marital status and other details to ensure you get an accurate claim. Be sure to call your Dublin CA car insurance agent now to let them know.