Marriage changes some obvious aspects of a couple’s financial lives. Obviously, two people have now formed a legal union, so they may have a joint checking account, live in a joint household, share expenses, and work toward financial goals together.
But aside from the obvious financial implications of marriage, it’s also important to take another surprising step that many people don’t realize. It’s a step that can lead to ongoing financial savings, so it’s totally worth taking.
Do this after marriage to reduce costs
After marriage, both bride and groom must report the change in relationship status to their auto insurance company.
Now, your auto insurance company may not be first on the list of people couples want to share their exciting news with (for regular people, their insurance company probably isn’t even on List of those notified). But the truth is that it is worth making a phone call to report that a marriage has occurred.
This is because car insurance companies take into account many factors when determining insurance premiums – and marital status is one of them.
A new marriage may mean lower car insurance premiums
Car insurance companies have a lot of data about what makes drivers more or less likely to be involved in crashes. One thing the data shows is that married people are often less likely to be involved in car accidents that result in insurance claims.
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Because insurance companies view married people as presenting a lower risk of filing claims that result in payouts, those who are married rather than single generally end up paying a lower rate for auto insurance coverage.
In fact, premiums can be as much as 5% to 6% lower for married people who purchase full auto insurance, compared to single people who purchase the same policy. A full coverage policy includes liability, collision, and comprehensive coverage to pay for losses to the policyholder’s vehicle And Harm to others, and this is often the right choice for drivers.
Saving 5% to 6% on auto insurance can provide significant savings. For a driver who was paying about $1,800 a year for his car coverage, a 6% premium reduction would leave the driver with an extra $108 in his pocket instead of the insurance company — enough to take his new wife out to a nice dinner.
Multi-car policies can also be a source of savings
Couples may also be able to take advantage of additional reductions in premium rates by meeting and purchasing their coverage from the same insurance company to qualify for multi-car or loyalty discounts. So, the savings could be greater if the newly married couple informs their insurance companies about the status of their new relationship And If a couple compares their options between different insurance companies than they entered into a relationship with to see which one will offer them the best rate under their current circumstances.
Those who wish to take advantage of these savings should contact their insurance agent or contact the insurance company directly as soon as possible so that their details can be updated with the insurance company and their premiums can be set appropriately to take on the new risks when the policy is renewed. Since marriage often comes with a lot of new shared goals, saving money on insurance premiums together can help make it easier to achieve those goals — so it’s worth the effort.
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