Car Insurance for Domestic Partners

If you are in a domestic partnership and live under the same roof, you may wonder how to handle your car insurance. Should you share a policy with your partner? Should you add each other as drivers on your separate policies? Should you exclude each other as drivers altogether? These are some of the questions that many unmarried couples face when it comes to car insurance.

Car insurance for domestic partners is not a one-size-fits-all solution. Depending on your situation, you may have different options and considerations to weigh. In this article, we will explain what car insurance for domestic partners is, why it is important to consider, and what are the benefits and challenges of sharing a policy or adding each other as drivers. We will also discuss when and how you can exclude each other as drivers on your separate policies.

What is car insurance for domestic partners?

Car insurance for domestic partners is a type of car insurance that covers unmarried couples who live together and share a vehicle or drive each other’s vehicles regularly. Domestic partners can be of the same or opposite sex, and they may or may not have a formal legal agreement that recognizes their relationship.

Car insurance for domestic partners can take different forms depending on the insurer and the state regulations. Some of the common ways that domestic partners can handle their car insurance are:

• Sharing a policy: This means that both partners are listed as named insureds on the same policy that covers all their vehicles. This option may be available if both partners share a permanent residence and have insurable interest in each other’s property.
• Adding each other as drivers: This means that each partner keeps their own separate policy but adds the other partner as a listed driver on their policy. This option may be required or advisable if both partners live together and drive each other’s vehicles occasionally.
• Excluding each other as drivers: This means that each partner keeps their own separate policy but excludes the other partner from their policy. This option may be possible or preferable if one partner has a poor driving record or multiple claims that could increase the premiums for the other partner.

Why share a policy with your partner?

Sharing a policy with your partner can have several advantages, such as:

• Saving money: Sharing a policy can often result in lower premiums than having two separate policies. This is because you can qualify for discounts such as multi-car discount, multi-policy discount, loyalty discount, etc. You can also save on administrative fees and deductibles by having one policy instead of two.
• Simplifying billing: Sharing a policy can make it easier to manage your payments and paperwork. You only have to deal with one insurer, one bill, one renewal date, etc. You can also avoid potential gaps or overlaps in coverage by having one policy instead of two.
• Extending coverage: Sharing a policy can extend your coverage to include your partner’s vehicle and vice versa. This means that you can drive each other’s vehicles with peace of mind knowing that you are both covered in case of an accident.

However, sharing a policy with your partner also has some potential drawbacks, such as:

• Losing independence: Sharing a policy with your partner means that you lose some control and flexibility over your own insurance. You have to agree on the coverage levels, deductibles, payment methods, etc. You also have to inform your insurer if you change your address, vehicle, or marital status.
• Affecting credit: Sharing a policy with your partner means that your credit scores may affect each other’s premiums. If one partner has a low credit score, it could increase the rates for both partners. Conversely, if one partner has a high credit score, it could lower the rates for both partners.
• Sharing liability: Sharing a policy with your partner means that you share the liability for any claims or lawsuits that arise from an accident involving either of you. If one partner causes an accident that exceeds the policy limits, both partners could be held responsible for the damages.

Why add each other as drivers on separate policies?

Adding each other as drivers on separate policies can have some benefits, such as:

• Maintaining independence: Adding each other as drivers on separate policies means that you can keep your own insurance and make your own decisions about your coverage, deductibles, payment methods, etc. You can also change your address, vehicle, or marital status without affecting your partner’s insurance.
• Protecting credit: Adding each other as drivers on separate policies means that your credit scores do not affect each other’s premiums. If one partner has a low credit score, it does not increase the rates for the other partner. Conversely, if one partner has a high credit score, it does not lower the rates for the other partner.
• Limiting liability: Adding each other as drivers on separate policies means that you limit your liability for any claims or lawsuits that arise from an accident involving either of you. If one partner causes an accident that exceeds their policy limits, only that partner could be held responsible for the damages.

However, adding each other as drivers on separate policies also has some possible disadvantages, such as:

• Paying more: Adding each other as drivers on separate policies can often result in higher premiums than sharing a policy. This is because you cannot qualify for discounts such as multi-car discount, multi-policy discount, loyalty discount, etc. You also have to pay administrative fees and deductibles for two policies instead of one.
• Complicating billing: Adding each other as drivers on separate policies can make it more complicated to manage your payments and paperwork. You have to deal with two insurers, two bills, two renewal dates, etc. You also have to avoid potential gaps or overlaps in coverage by having two policies instead of one.
• Reducing coverage: Adding each other as drivers on separate policies can reduce your coverage to include only your own vehicle and not your partner’s vehicle and vice versa. This means that you cannot drive each other’s vehicles with peace of mind knowing that you are both covered in case of an accident.

Why exclude each other as drivers on separate policies?

Excluding each other as drivers on separate policies can have some advantages, such as:

• Saving money: Excluding each other as drivers on separate policies can often result in lower premiums than adding each other as drivers or sharing a policy. This is because you do not have to pay for the risk of covering another driver who may have a poor driving record or multiple claims.
• Protecting liability: Excluding each other as drivers on separate policies can protect you from liability for any claims or lawsuits that arise from an accident involving your partner. If your partner causes an accident that exceeds their policy limits, only they could be held responsible for the damages.

However, excluding each other as drivers on separate policies also has some risks and limitations, such as:

• Losing coverage: Excluding each other as drivers on separate policies means that you lose coverage for your partner’s vehicle and vice versa. This means that you cannot drive each other’s vehicles at all without risking being uninsured in case of an accident.
• Breaking the law: Excluding each other as drivers on separate policies may not be allowed in some states or by some insurers. Some states or insurers may require you to include any licensed driver who lives in the same household or who drives your vehicle regularly. If you exclude such a driver from your policy, you could be violating the law or your contract with your insurer.
• Facing penalties: Excluding each other as drivers on separate policies could result in penalties if you or your partner drive each other’s vehicles anyway and get into an accident. Your insurer could deny your claim, cancel your policy, or sue you for fraud. You could also face legal consequences such as fines, license suspension, or jail time.

Conclusion

Car insurance for domestic partners is a complex and evolving topic that depends on many factors such as your relationship status, living situation, driving habits, insurance company, and state laws. There is no definitive answer to whether you should share a policy with your partner, add each other as drivers on separate policies, or exclude each other as drivers altogether.

The best way to find out what works best for you and your partner is to compare quotes from different insurers and see what options and prices they offer