Getting married is exciting, but it is also a busy time. Consequently, few people think about their insurance needs when they already have so much on their plate.
Nonetheless, once the honeymoon is over you definitely need to review your insurance coverage. Here’s 4 powerful reasons why it is so important.
Your Coverage Needs Will Differ
When two people combine households, it usually means more stuff. Consequently, the amount of coverage for personal property must also increase. Otherwise, you may be underinsured and may not receive proper compensation if you ever need to file a claim.
Additionally, a homeowners insurance or renters insurance policy may not provide sufficient coverage for certain items. Wedding rings are a perfect example as standard policies have limits on jewellery.
However, many other items also have coverage limits. Any fine art, antiques, silverware, or other expensive items you owned beforehand or received as wedding gifts need special attention.
May Need to Add Spouse as Named Insured
Whether you’re renting or own a home, it is important that both parties are listed as a “named insured” on the policy. If one party already has an insurance policy, the carrier may or may not include the spouse automatically on an existing policy after marriage.
Ask your insurance agent to review your policy. If it doesn’t automatically add the spouse as a named insured, they will request the addition. They will need basic personal information and will look at the spouse’s claims history to determine an appropriate premium.
If you’re moving into a new home together, your agent should include both of you as named insureds. Otherwise, one party won’t be able to make changes to the policy or file claims.
Expert Advice Could Save You Money
Most people have a “buy it and leave it” attitude when it comes to insurance. This is never a good idea, but especially when a life event alters your insurance needs. You could be missing out on some of the cost-saving benefits marriage may offer.
Couples may benefit from multi-car discounts or pay less by bundling their policies. This not only saves them money, but can also eliminate coverage overlaps and gaps.
Nonetheless, it takes a skilled insurance agent to find you the greatest advantages. Carriers don’t automatically apply discounts and bundling benefits depend on the policy types, your insurers, and your needs.
Combining Coverages May Be Beneficial, But Not Always
We mentioned that getting married is often a great way to pay less for insurance. For instance, auto insurance premiums may drop since insurance company statistics show married couples file fewer claims.
Generally, a couple can expect their car insurance rates to drop by about 6%, or around $100 annually. However, this depends on many factors and in some cases, combining coverages could cost you more.
As an example, if you or your spouse have driving violations or accidents that led to an insurance claim, it might make sense to leave policies separate. Otherwise, insurances rates would rise for both of you. Additionally, the vehicles you own and the miles each of you drive each year could influence this decision.
Even so, bundling your auto and homeowners or renters policies can often lead to a 15% to 20% savings.
Now that you’re married (congratulations!), give us a call! We’ll help you determine when it is wise to combine coverages and when it’s not. We’ll also look for the most beneficial discounts that apply to you and your new family.