Congratulations! If you are a fortunate young couple about to embark on the journey through life together, you have a lot to look forward to…the least of which is your insurance! But taking the time to properly set yourself up, can alleviate enormous headaches, costly over payments, and potential gaps in coverage. Here is a quick guide to insurance for newlyweds and engaged couples.
Combining auto insurance policies is often overlooked for quite some time by couples. However, it likely the quickest way to save dramatically on your overall insurance cost.
Discount for being married.
Actually one of the best discounts on auto insurance is for simply being rated as married versus single. Traditionally, insurance companies hold that someone that is married is more responsible and therefore less likely to have an auto accident.
Another significant discount is the multi-car discount. Simply by going from one car to two cars, your insurance can decrease dramatically!
The way an insurance policy reads is that you are the named insured and your spouse automatically gains named insured status as well. This means that legally the insurance company could have to pay for an accident your spouse causes. Therefore, because they could have to pay for the spouse, they require that they list your spouse on the policy as well.
What you need to do
Once you are officially married, you are essentially becoming one entity. Ownership in items such as your cars becomes joint. Therefore, you need to have your agent quote a joint auto insurance policy for you and your spouse.
HOME OR RENTERS INSURANCE
Whether you are buying your first home or moving into an apartment together, you’ve likely accumulated a lot of your own stuff over the years and gained tons of new furnishings as wedding presents.
Buying a home
If you are buying a home together, it will likely be the largest investment your family makes for quite some time. Unlike auto insurance, homeowners insurance is quite differentiated, and shopping for it on the lowest cost bases could leave you paying thousands or tens of thousands of dollars out of pocket with the wrong coverage. So be sure to find an agent who goes through the policy in depth with you so that you understand how to best protect your most valuable asset.
Getting an apartment together
After the wedding you may be flush with new items to stock your kitchen or decorate your place. Far too often couples dramatically underestimate the amount of personal property they have. Imagine how much it would cost if you had to buy an entire new wardrobe, all new furniture, televisions, decorations, and kitchenware. When buying a renters insurance policy, the amount you should choose the the overall replacement cost of all of these items.
Bundle it with your auto insurance
Far too many couples fail to package either of these policies with the company as their auto insurance. Often, young drivers sign up with companies such as GEICO or Progressive because they offer the most competitive rates for young drivers. When they go to add home insurance and refuse to quote the homeowners insurance as a package, they miss out on enormous savings. Package discounts range from 20 to 30% per policy, depending on the carrier!
INSURING YOUR WEDDING RINGS AND JEWELRY
If you have renters or homeowners insurance, a common misconception is that it will provide coverage for your engagement ring. While the policies do provide a small amount, coverage for jewelry is often limited to $2000 or $5000 per occurrence (not per item) for theft or mysterious disappearance. So in order to cover a ring worth more than that you would need to schedule the item with a personal articles rider.
We know, we know! You just got married and the last thing you want to think about is buying life insurance. But there are a handful of reasons why getting married is the appropriate time for a couple to purchase life insurance.
It will never be cheaper
The cost of life insurance increases as you grow older. With a term life insurance policy, you can lock in exceedingly low rates for up to 30 years.
Protect your spouse
If you bought a home with your spouse, you likely did so dependent upon both party contributing to the cost of paying for the home. How would your spouse afford your home without your financial support?
Plan ahead for your future family
Most couples feel as though they should wait until they are expecting to purchase life insurance. However, so many unexpected things can happen that can make the cost of life insurance far greater or even make you ineligible. Purchasing life insurance while you are young and healthy will not only keep the cost low, but will also allow you to purchase more life insurance that will meet your future financial needs rather than your current needs.
FIND THE RIGHT PARTNER…AGENT THAT IS!
As you begin planning your financial lives together. There are naturally a few primary service providers that are key in helping your reach your financial goals. Traditionally, most families rely on a financial planner, an accountant, and an insurance agent. For most couples, financial planners and accountants come later on in the picture as they begin to accumulate enough money to invest and set aside for retirement. But a good insurance agent should be part of your team from day 1.
It is far too easy to buy the wrong insurance today. The vast majority of insurance marketing you see is geared towards low price insurance. As the saying goes, you get what you pay for. Paying for the wrong policy could put you and your new family in a financial hole that could take years or decades to recover from. For the majority of your life, your home will make up the vast majority of your assets and net worth. You wouldn’t trust someone on a 1-800 number to invest that amount of money in the stock market, why would you take that chance with your home?