Car Insurance for Domestic Partners: What You Need to Know

If you are in a committed relationship but not legally married, you may wonder how to get car insurance for you and your partner. According to the U.S. Census Bureau, there were about 7 million unmarried couples living together in 2019, and many of them may face challenges when it comes to finding affordable and adequate car insurance coverage.

In this article, we will provide you with information and guidance on car insurance options for domestic partners. We will explain the benefits and drawbacks of sharing car insurance with your partner, the requirements and restrictions for doing so, and some tips and recommendations for finding the best car insurance policy for your needs and budget.

Benefits of Sharing Car Insurance with Your Partner

One of the advantages of combining car insurance policies or adding your partner as a listed driver on your policy is that you may be able to save money and streamline your household accounting. Sharing car insurance with another person may result in a lower price than purchasing two separate policies.

Some of the factors that can lower your premium when you share car insurance with your partner are:

• Multi-car discount: If you and your partner have more than one vehicle, you may qualify for a multi-car discount when you insure them under the same policy. This discount can range from 10% to 25%, depending on the insurer.
• Bundling other policies: If you and your partner have other types of insurance, such as homeowners, renters, or life insurance, you may be able to bundle them with your car insurance and get a discount on both policies. Bundling can save you up to 20% on your premiums, depending on the insurer.
• Driving history: If you and your partner have good driving records, with no accidents, tickets, or claims, you may be able to get lower rates than if you had separate policies. However, this also means that if one of you has a bad driving record, it may affect the other’s rate as well.

Sharing car insurance can also save you hassle in some scenarios, such as:

• Driving each other’s vehicles: If you and your partner live together and drive each other’s vehicles occasionally, sharing car insurance can ensure that you both have adequate coverage in case of an accident. If you have separate policies, you may not have enough coverage or may have to pay extra for permissive use coverage.
• Filing a claim: If you and your partner are involved in an accident together, sharing car insurance can make the claim process easier and faster. You only have to deal with one insurer, one deductible, and one adjuster. If you have separate policies, you may have to file two claims, pay two deductibles, and deal with two adjusters.

Requirements and Restrictions for Sharing Car Insurance with Your Partner

One of the concepts that insurance companies use to determine if you can share a policy with your partner is insurable interest. This means that you have a financial stake or ownership in another person’s property or well-being. For example, married couples have insurable interest in each other’s vehicles because they share assets and liabilities.

Insurance companies once prohibited unmarried couples and domestic partners from sharing car insurance policies because they assumed that they did not have insurable interest in each other’s property. However, as modern families have evolved, most insurers now recognize that insurable interest often exists outside of marriage.

You will probably need to prove that you share an address or have otherwise established a stable, committed relationship with your partner. Some insurance companies may even require proof of engagement before issuing a couple a joint auto insurance policy.

However, not all insurance companies offer policies for unmarried couples under names such as non-relative insurance, roommate insurance, non-married insurance, or domestic partner insurance. And even if they do, they may have different criteria and rates for these policies.

Moreover, state regulations and insurer guidelines can vary dramatically from one company and geographic area to the next. Depending on where you live, you might need to get quotes from several insurance companies before finding a policy that fits both your and your partner’s needs.

Drawbacks and Alternatives to Sharing Car Insurance with Your Partner

While sharing car insurance with your partner can have some benefits, it can also have some drawbacks. Some of the potential disadvantages of sharing car insurance with your partner are:

• Higher rates: If you or your partner have a bad driving record, a low credit score, or own an expensive or risky vehicle, sharing car insurance may increase your premium rather than lower it. You may be better off keeping separate policies or excluding each other as drivers on your policies.
• Liability issues: If you or your partner cause an accident that results in injuries or damages that exceed your policy limits, you may be held jointly liable for the excess amount. This means that your assets and income may be at risk of being seized or garnished by the other party or their insurer.
• Cancellation problems: If you or your partner decide to end the relationship, you may have to cancel your joint policy and get separate policies. This can be a hassle and may result in higher rates or gaps in coverage. You may also have to divide the vehicles and the assets that you shared.

Some of the situations where sharing car insurance may not be advisable are:

• Having different driving habits: If you and your partner have different driving habits, such as driving frequency, distance, purpose, or style, sharing car insurance may not reflect your individual risk profiles. You may end up paying more or less than you should for your coverage.
• Owning expensive or risky vehicles: If you or your partner own a vehicle that is expensive, rare, modified, or high-performance, sharing car insurance may not provide enough coverage or may increase your premium significantly. You may need to get a separate policy or a special endorsement for your vehicle.
• Having poor credit scores: If you or your partner have a poor credit score, sharing car insurance may affect your rate negatively. Insurance companies use credit scores as one of the factors to determine your risk level and premium. You may want to keep separate policies until you improve your credit score.

Some of the alternatives to sharing car insurance with your partner are:

• Keeping separate policies: If you and your partner prefer to keep your finances and assets separate, you may want to keep separate car insurance policies as well. This can give you more control and flexibility over your coverage and rates. However, you may miss out on some discounts and benefits that come with sharing a policy.
• Excluding your partner as a driver: If you or your partner have a poor driving record or multiple claims, adding them as a driver on your policy may push your rate up. If this is the case, you can exclude them as a driver on your policy in certain states. However, this means there will be no coverage at all if they drive your vehicle, and you could be liable to cover any damage they cause out of pocket.
• Getting non-owner car insurance: If you or your partner do not own a vehicle but still drive occasionally, you may want to get non-owner car insurance. This is a type of liability coverage that protects you when you drive someone else’s vehicle. It can supplement the owner’s policy and provide extra protection in case of an accident.

Tips and Recommendations for Finding the Best Car Insurance for Domestic Partners

Finding the best car insurance policy for you and your partner can be challenging, but not impossible. Here are some practical tips and recommendations to help you compare and choose the best car insurance policy for your needs and budget:

• Shop around: The best way to find the best car insurance policy is to shop around and get quotes from different insurance companies. You can use online tools, such as comparison websites, aggregators, or brokers, to compare rates and coverages from multiple insurers in one place.
• Ask questions: When you get quotes from different insurers, make sure to ask questions about their policies and discounts for domestic partners. Find out what their requirements and restrictions are, what coverages and limits they offer, and what discounts and benefits they provide.
• Choose the right coverage: Depending on your situation, you may need different types of coverage for yourself and your partner. For example, if you share a vehicle, you may need collision and comprehensive coverage to protect it from damage. If you drive each other’s vehicles occasionally, you may need permissive use coverage to extend your liability coverage. If you have different vehicles, you may need different deductibles and limits for each one.
• Review your policy regularly: Once you find the best car insurance policy for you and your partner, make sure to review it regularly and update it as needed. For example, if you move in together, get married, buy a new vehicle, or change your driving habits, you may need to adjust your policy accordingly.

If you are looking for reputable and affordable car insurance companies that offer policies for domestic partners, here are some of the top-rated ones in the U.S., according to Consumer Reports:

• USAA: USAA offers car insurance exclusively for military members and their families, including domestic partners. USAA has excellent customer satisfaction ratings, low rates, and generous discounts.
• Amica Mutual: Amica Mutual is a mutual insurance company that offers car insurance for all types of drivers, including domestic partners. Amica Mutual has high customer satisfaction ratings, competitive rates, and dividend policies that pay back part of the premium.
• Geico: Geico is one of the largest car insurance companies in the U.S., offering car insurance for a wide range of drivers, including domestic partners. Geico has good customer satisfaction ratings, low rates, and numerous discounts.

Conclusion

Car insurance for domestic partners can be a complex and confusing topic, but it does not have to be. In this article, we have provided you with information and guidance on car insurance options for domestic partners. We have explained the benefits and drawbacks of sharing car insurance with your partner, the requirements and restrictions for doing so, and some tips and recommendations for finding the best car insurance policy for your needs and budget.

Having adequate car insurance coverage for yourself and your partner is important to protect your financial security and peace of mind. Whether you decide to share a policy, keep separate policies, or get alternative coverage, make sure to compare different insurers, ask questions, and choose the right coverage for your situation.

If you need more information or assistance with your car insurance needs, please contact us today. We are here to help you find the best car insurance for domestic partners.