EPISODE

Unmarried couples living together can lower insurance costs.

EPISODE DESCRIPTION

Unmarried couples living together can take advantage of lower costs for their auto insurance.

EPISODE TRANSCRIPT

Today we want to talk about unmarried couples that are living together and how coverage applies for them underneath the homeowners policy and the automobile policy.

Who is covered as the named insured is key for the homeowners policy. That person along with the household spouse of the named insured and any household relatives are covered. However, this conversation deals with the individual who is not any of these. This would be an unmarried person in the house. 

For a Significant Other living in the house, there are two ways to get coverage underneath the homeowners policy. The first item is to go back to that named insured. Let’s say the named insured is Ms. Smith and Ms. Smith is living with Mr. Jones. But they’re not married, and Mr. Jones has no coverage. In this case we would have both Ms. Smith and Mr. Jones both listed as named insureds. That coverage is free. It’s just a matter of getting the individuals both listed. The other option is for the Significant Other to buy a renters insurance policy. That’s about $180 a year roughly, give or take.

Underneath the automobile policy, it gets extremely complicated, especially if you’re an unlisted household member. You may be excluded if you’re not listed.  Under this scenario for auto insurance, there’s two ways to get coverage.

First, just add the unlisted partner as a driver on your auto policy. That could be free, or it could cost extra depending on the insurance provider. And what I mean by extra is an extra cost for your premiums.

The second way is to add the unlisted individual as a co-named insured and also add their vehicle. Under this scenario you’re going to save money because you’re going to get the multi-car discount and hopefully the auto and home bundle discount.

This can be a complicated topic and we don’t expect any of our clients to fully understand it. Give us a call. We’ll walk you through the process and provide you with the solutions. If at the end of that conversation you proceed with our solutions, you’ll have peace of mind.

My name is Dennis McMichael, vice president of McMichael Insurance. Now you know me and now you know a little more about insurance.

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