There are many insurance options for married couples, and one of them is car insurance. A common question married couples ask each other is whether to combine their car insurance policies. If your spouse has a less-than-stellar driving record, you might wonder if you should keep your insurance separate. While combining auto insurance policies typically offers the best rates, there are situations where keeping separate policies might make more sense for some couples.
When should married couples have separate policies?
First, can married couples have separate car insurance policies? The short answer is yes. While combining car insurance policies has many advantages, there are situations where it might make sense for married couples to keep their policies separate after moving in together.
For example, if your spouse has a poor driving record with multiple violations or a low credit score (depending on what province you live in), separate policies might save you money.
Commute length and destination can also impact rates. If one spouse works from home while the other has a long commute to a high-risk area, keeping things separate could be more cost-effective.
And even if both of you have good driving records and credit scores, it might still be worth considering separate policies if one of you drives a more expensive vehicle, like a high-end sports car, which can be pricier to insure.
Talk to your insurance broker or insurance providers to help you determine whether it would be best to have joint or separate insurance policies.
Do I need to add my spouse to my car insurance policy?
Not necessarily. It depends on the insurance company and situation. As we stated earlier, married couples aren’t required to combine their car insurance policies. However, if you do decide to keep separate car insurance policies, car insurance companies will typically still require you to at least list your spouse on your policy since they usually have access to your vehicle.
Now, if your spouse doesn't have a driver's licence, you won't have to list them on your policy.
How do you exclude your spouse from your car insurance policy?
It depends on where you live and your insurer's policies. For example, in Ontario, to exclude your spouse from your auto insurance policy, let your agent know that you're married, but your spouse won’t be driving your car. This will opt you in to add an OPCF 28A endorsement to your policy to exclude the driver. You’ll then need to sign the endorsement or exclusion form, which both you and the excluded driver have to sign.
Keep in mind that if your spouse doesn’t have their own vehicle, it might be harder to exclude them—unless they don’t have a driver’s licence.
It's important to mention that if you choose to exclude your spouse from your policy, then they need to avoid driving your vehicle altogether. If the insurance company finds out that someone who’s excluded has been driving, they could void your policy. Not only that, but if they get into an accident while driving your car, they won't have any coverage.
So, if you want to have separate policies but still be able to drive each other’s cars, you’ll need to at least list each other on your respective policies.
What happens when you exclude your spouse from your car insurance policy?
If your spouse has a history of risky driving, it can cause your rates to keep going up. In some cases, your insurer might suggest either removing them from your policy or having you pay a higher premium. By excluding your spouse, they won’t be able to legally drive your vehicles, and they won’t have any protection under your policy. If they get into an accident while driving one of your cars, they’ll be treated as an uninsured driver and will be responsible for all damages and injuries caused.
As we mentioned, in Ontario, if you choose to exclude a household member from your policy, both you and your insurer will sign an endorsement confirming the exclusion. This means the excluded driver will no longer be covered when driving your vehicles, but they will still be covered as a passenger for things like accident benefits. After being labelled an excluded driver, they shouldn’t drive any of the cars on your policy.
It's important to mention that if they do and get into an accident, it’s similar to driving without insurance, and both you and the excluded driver could be held liable if you knew they were driving.
Why should married couples consider combining car insurance policies?
So, while it isn't required to combine policies, it often makes sense to do so. By combining policies, couples can qualify for discounts and lower rates through joint car insurance, especially if both have good driving records. Not only do insurance companies tend to offer better rates for married couples, but you might also be eligible for a multi-car discount and additional discounts if you bundle even more policies together, like your auto and home insurance coverage.
With a joint policy, both spouses are covered to drive any of the insured vehicles, giving you more flexibility in your day-to-day routine. Plus, by having one policy instead of multiple, you'll only have to worry about one single payment and one renewal date. How convenient is that?
What is a multi-car discount?
A multi-car policy means that more than one vehicle is covered under the same insurance plan. The main benefit is that most insurance companies offer a discount, often called a multi-car or multi-vehicle discount, when you insure two or more cars on the same policy.
What is joint car insurance?
Joint car insurance, or a combined policy, lets you and your spouse share one car insurance plan. This means both of you are covered under the same policy with just one premium to pay. If there’s an accident or a claim, the policy covers both of you and your vehicles. Benefits of having joint car insurance include:
Significant cost savings
Joint car insurance is like having a multi-car insurance policy. When you insure multiple vehicles under one policy, the premiums are usually lower than when you insure each car separately. This keeps more money in your pocket. Plus, you can further bundle your policy with things like homeowners insurance for even more savings.
Simplified payments
Bundling your cars under one policy means you only have to deal with a single payment, no more juggling multiple payments to different insurers.
Easier renewals
With a joint policy, there’s just one renewal date to keep track of, making it much simpler to ensure your coverage is always up-to-date.
Simplified management
Handling separate policies for multiple vehicles can be a hassle, with different paperwork, renewal dates, and insurers. A joint policy streamlines all of that—one policy, one renewal date, and one point of contact for all your cars, making life easier.
Single deductible
Some insurers offer the benefit of a single deductible with a joint policy. If more than one of your vehicles is involved in the same accident, you’ll only have to pay one deductible, which can save you a lot in the event of an accident.
Car insurance tips for married couples
A change in marital status comes with more decisions than you might expect. Merging two lives takes some thoughtful planning to make the transition as smooth as possible. Here's our list of a few helpful car insurance tips for married couples to keep in mind:
Wait until a renewal date before cancelling a policy
If you’re moving in together and planning to combine your car insurance, you’ll likely need to cancel at least one policy. A helpful tip is to wait until the renewal date of at least one policy before cancelling to avoid any cancellation fees. If you need to cancel more than one policy, you might not be able to wait for both renewal dates, but even holding off on one can help you avoid extra fees.
Bundle your new joint policy with other policies
Another great tip is to talk with your insurance broker about bundling your joint insurance policy with your home insurance under the same provider. Bundling these policies allows you to combine your coverage into one package, which can qualify you for a multi-policy discount. Plus, staying with that bundle over time may lower your premiums with a loyalty discount as a reward for being a loyal customer.
Don't forget to add your dependents
Marriage isn’t just about merging two lives—it can also mean bringing others into the household, like children. If you now have teenagers who just got their driver’s licence, it’s important to add them to your joint auto insurance as listed drivers, even if they don’t have their own cars. Not only will this give them the necessary coverage, but it also helps them start building their own insurance history early.
Learn more about car insurance with BrokerLink
Be sure to call your BrokerLink broker anytime you experience a major life event, like getting married. Our licensed insurance experts will review your situation and make sure you have the right coverage in place. We can also help you determine whether it's better for you and your spouse to have joint or separate insurance policies. Get in touch with us today to learn more. You can reach us by phone, email, or in person at any one of our locations throughout Canada.
Get an auto insurance quote [phone]
