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What Newlyweds Need To Know About Insurance

Newlyweds face some big decisions as they merge their lives, and not just whose tacky furniture is headed for the nearest dumpster.  Now that you and your spouse are an official family, it’s a good time to review your insurance options.

Here are some key moves to consider:

CAR INSURANCE

Combining policies: Get quotes from each of your insurers to see which one offers the cheapest price.  Also, compare car insurance rates form other companies to find out whether a new insurer would cost less.

Make sure whoever cancels coverage- you, your spouse or both- has the new insurance effective on the day the old insurance expires. Any lapse can add to higher rates next time you shop for coverage. 

Ask about discounts: Remember to ask for a review of possible discounts, like multicar discount for insuring more than one vehicle and bundling discount if you’re also buying homeowners or renters insurance.   

Simply letting your insurer know you are married is enough to reduce your rates in some cases.  Married people often get lower rates because they are seen as less risky. 

HOME OWNERS AND RENTERS INSURANCE

Choosing a policy: If you’ve been living apart and paying for separate home or renters insurance, one person will need to cancel coverage when you move in together.  The policy you keep automatically covers  both of you, but also alert your insurer so it can officially list your spouse on the policy.

Not sure which policy to go with?  Consider factors such as price, coverage options and customer service scores to find the best homeowners insurance or renters insurance. 

Increasing Coverage Limits: You might have more to lose now that you and your spouse have combined belongings, such as furniture and electronics.  Ask your insurer about increasing your limits on personal property coverage, which pays to replace or repair items that are stolen or damaged.  High-value items such as wedding rings might need special coverage, called scheduled personal property. 

Bundle of joy? Er, not that kind.  Bundling your auto and homeowners insurance, or auto and renters, by buying them from the same company means easy savings from most insurers. 

LIFE INSURANCE

Insuring for two: You probably didn’t need life insurance when you were single. But that could change now if your death would leave your spouse in financial trouble, or vice versa.  For example:

  • One of you depends, or both depend, on the other’s income to pay the bills
  • You share a mortgage that neither could afford alone
  • One of you has, or you both have, debts the other would be stuck with

A life insurance payout can keep situations like these from causing financial ruin for the surviving  spouse.

 

Article by Alex Glenn, staff writer at NerdWallet.com  Copyright 2017 NerdWallet, Inc.  All Rights Reserved

Insurance products are not a deposit, not FDIC insured, not insured by any federal government agency and not guaranteed by the bank.