A joint car insurance policy, or couples policy, means having both drivers’ cars included on the same policy. Combining policies is usually cheaper than getting 2 separate policies for each car, but that’s not always the case.
A car insurance policy for couples, in the form of 1 policy with 2 insured cars, is often a cheaper way to get coverage than separate policies because of multi-vehicle discounts and a potential marriage discount. On average, you could save around 20% on your car insurance premiums if you’re married and in your early 20s compared to a single driver. Drivers in their 30s have saved around 2% on their car insurance because they’re married.
Insurance companies generally view married people as more responsible drivers than their single counterparts. But you’ll save more or less depending on a combination of your age and gender too – with young, female drivers saving the most. But not every driver will save this much. How much you pay will depend on the driving records of both you and your spouse.
Insurers typically consider married people to pose less risk, so premiums go down. If both partners have clean driving records, then you’ll likely save money by combining your car insurance policies. Compare the costs of both a combined policy and separate policies from a few insurers to determine which is best for you.
It’s relatively unusual for separate policies to be preferable, but it’s still a possibility. Generally, if one driver presents a higher risk, it may be less expensive to go with separate policies. It might also be cheaper to maintain separate policies if one partner’s car is inherently more expensive to insure, such as a luxury or classic car. Risk is determined by reviewing several different factors.
Tickets, citations, DUI, DWI and other marks of a bad driving record can cause a hike in insurance costs. A driver with a DUI might only be able to find insurance with a provider that specializes in insuring high-risk drivers, which almost always comes with higher premiums.
An expensive car often comes with more risk in the eyes of insurance companies. A joint policy may not have enough of a discount to outweigh the premium bump that comes with adding your spouse if they’re sporting a luxury model.
Poor credit can also be an indicator of risk to insurers and may lead to higher premiums. But couples in Ontario and Newfoundland and Labrador don’t have to worry about this factor – insurance companies aren’t allowed to evaluate credit scores when assessing risk in these provinces.
Before you combine your car insurance policies, consider finding out a little more about your partner’s driving background by asking these questions and sharing your own answers:
Not every couple will need to ask these questions, especially if you both have relatively clean records. It may also help to write down your answers separately and then share them to minimize feelings of embarrassment or judgment on either side.
Be aware that listing a driver on your policy is different from combining policies. If your partner regularly drives your car, or vice versa, they must be listed as a driver on your policy.
If you exclude your significant other from your policy and they do drive your car and get into an accident, your policy might not cover the damages.
If you have different insurers and aren’t sure which company to keep – shop for new car insurance quotes that cover you both. Compare your options to see which company offers the coverage you both need at the best price.
If you want to go with one of your existing car insurance companies, give your car insurance representative a call to discuss coverage options and potential savings on combining your policies.
No matter where you are in life, there are ways to save on car insurance. You may find these ways particularly useful if you’re newlyweds or just moved in together.
Make sure that you’re only keeping coverage that you need. If your car is a few years old now, it may be time to drop the new car replacement. Or if your spouse has a CAA membership, it may be worth ditching roadside assistance.
Getting married can also mean looking into other types of coverage, like life or home insurance. Many insurance companies will give you a discount when you bundle and take out auto, home and life policies together. In some cases, you may even get a single deductible for a covered event when you need to claim both home and car insurance.
It can pay to swap insurers every few years. And moving to a new city or getting married is a great time to compare quotes from other insurance companies. You could end up saving hundreds.
Many insurance providers will allow a couple living together under the same roof to combine their insurance policies – especially if you claim common-law status. But this isn’t always the case, so shop around to find an insurer that will combine your policies as a single household.
If you can’t find a provider that will merge your policies, you could consider transferring ownership of both cars into one person’s name. Then that person could take out a policy that covers both cars, which will qualify for a multi-vehicle policy discount.
However, keep in mind that you must list your partner on the policy for your car if they’ll be driving it regularly.
Yes, any married couple can have a multi-vehicle policy with the same benefits. Because Canada has legalized same-sex marriage on the national level, insurers across the country offer the same policy options to same-sex couples.
This newly married couple is combining their car insurance policies. Jen is a 26-year-old woman with a clean driving record and no previous claims. Her husband, Mike, is a 25-year-old man who has a history of traffic violations and drives an expensive luxury car.
After getting quotes from a few providers, Jen and Mike decide it would be cheaper to get 2 separate policies instead of a joint policy. Jen finds she can get a high-level comprehensive policy for a good deal, while Mike could get a cheaper, separate policy from an insurer that specializes in covering high-risk drivers. They decide to re-evaluate in a year after some of Mike's tickets expire from his record.
* This is a fictional, but realistic, example.
More likely than not, you’ll save money when combining your car insurance policy with your partner’s. But be aware that a significant other with a poor driving record, poor credit or an expensive car could cause your premiums to rise when combining policies. Learn more about car insurance in our comprehensive guide.
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