Newlyweds Discount: How Much Can You Save?

After their wedding, newlywed couples have lots of financial decisions to make, and there are several decisions for newlyweds to make about auto insurance coverage options. One decision is whether they want to purchase auto insurance jointly or add their new spouse to an existing policy.

Do auto insurance companies offer a newlyweds discount? Being newly married will get you a 5% savings on a joint policy, but it’s not easy to buy newlyweds discount auto insurance as not every auto insurance company offers it. 

Of the companies that do offer newlywed deals, some require couples to have been married within the last year, though this varies by company.

Enter your ZIP code for free quotes from top insurance companies offering affordable newlyweds discount auto insurance to find the best newlyweds discount auto insurance rates today.

How much can you save with a newlyweds discount?

There are not many newlyweds discount auto insurance companies. When offered, discounts for newlyweds are 5% on a joint policy.

Besides newlywed discounts, changing your marital status from single to married on your policy may decrease your insurance rates by $96.

How long do newlywed discounts last?

Discounts for newlyweds are generally a short-term discount. The married couple should prepare for an increase in their auto insurance budget after the newlyweds discount disappears.

Even if a couple receives newlywed discounts, they will have to decide how much coverage they need as a couple.

The Insurance Information Institute recommends purchasing more than the minimum amount of liability coverage required by the state where you live. Not having enough coverage could clean out a married couple’s savings in the event of an auto accident.

Being prepared for when your newlyweds auto insurance discount expires is important. Couples should compare auto insurance rates and decide what types of auto insurance coverage they need, whether it’s collision, comprehensive, personal injury protection (PIP), or other coverage.

How should a married couple structure their auto insurance coverage?

Couples need to decide how to structure their coverage. Should they have a joint policy or separate policies? If you’re married and living together, insurance companies usually require you to either add or exclude a spouse if you maintain separate existing policies.

The insurance company sees the risk of sharing cars to be too high.

Should a couple purchase a joint policy? Keep reading to discover the pros and cons of combining auto insurance coverage into one joint policy.

What are the pros of combining auto insurance coverage into one policy?

Combining coverage into one policy can eliminate gaps in coverage and inconsistent liability coverage limits. If one spouse has liability coverage for $200,000 and the other spouse has $500,000 in liability coverage, it is inconsistent and their coverage will depend on which car they are driving.

Combining coverage solves that problem and makes it much easier if there is an accident. Plus, it’s more convenient to have one monthly auto insurance bill.

What are the cons of combining auto insurance coverage into one policy?

When is it a bad idea to combine coverage into one joint policy as a married couple? Insurers take into account a lot of data when determining an insurance premium.

If your spouse has any of these issues, it may be better to maintain separate auto insurance policies:

• a low credit rating
• a bad driving record
• an expensive car

A spouse with a low credit rating or a bad driving record can negatively impact your premium by a significant amount.

When you combine into a joint policy, the spouse with the better driving record will have their risk level raised, while the spouse with the worse driving record will have their risk level lowered.

If your spouse has an expensive car while you drive an older or cheaper model car, you’ll be helping them pay for the coverage on their more costly vehicle. Of course, you’ll also have the benefit of driving that expensive car, if that helps soften the blow.

Deciding whether to combine into a joint married policy means weighing the pros and cons in your unique situation.

What other discounts are available to newlywed couples?

Because newlywed deals are not a common discount among auto insurance carriers, there are other discounts married couples can investigate to save money.

One discount married couples should consider is the multi-vehicle discount. Adding one or more cars to a policy will get you a discounted premium. Adding an additional driver to a policy may also result in a discount.

Other ways newlyweds could save on their premiums include:

• bundling or a multi-policy discount for combining homeowners or renters insurance with life insurance and auto insurance
• good driver discounts
• usage-based or pay-per-mile discounts using telematics devices
• a paid-in-full discount
• a paperless billing discount

Combining these discounts can lead to real savings on a couple’s auto insurance premiums.

Read more: Paperless and Auto Billing Discount: How Much Can You Save?

What is the bottom line on a newlyweds discount?

With a newlyweds discount, you can save 5%. Ask your insurance company if they offer newlyweds discount auto insurance quotes because newlywed discounts are not offered by many insurance companies.

Newlyweds should determine whether a joint auto insurance policy fits their needs. Most couples do choose a joint auto insurance policy, though there are circumstances where separate auto insurance policies work better.

Couples should investigate additional discounts for newlyweds with their auto insurance carriers. Multiple discounts can be combined for real savings on auto insurance.

Now that you’ve learned all you need to know about newlywed discounts. Enter your ZIP code below to receive free quotes from top insurance companies offering newlyweds discount auto insurance.