When you move in with someone — whether it's a roommate, a sibling, or a significant other — you have new opportunities to bundle expenses for the benefit of both. Should this include combining your auto insurance?
There is no right or wrong answer to this question. Like many things, both options have their pros and cons. To help you find the right path for your new household, here are a few of these to consider.
The Pros of Sharing Insurance
The biggest reason most people bundle insurance together is to save money. Many carriers provide discounts for having more policies with them. And if your driving record is less than stellar, you could benefit from your roommate's.
Do you occasionally share cars? If so, you may need to be authorized drivers on each other's insurance anyway. Each carrier has different rules, but many require all drivers in a household to be named or they aren't covered.
Therefore, it may not make sense to pay for two policies — each with different coverage rules and limits — when you might be able to manage just one. Fewer bills mean less chance of anything being missed.
The Cons of Sharing Insurance
Of course, sharing auto insurance isn't for everyone. What might make it a bad idea?
You will be tied to your roommate or partner's driving record, for example. Hopefully, partners and family members know the other's history and type of driving. So you should have an idea about whether or not they will have a good effect.
However, roommates may not be as familiar with each other's history. So make sure you discuss what you may be getting into. If they may have things like a DUI, prior accidents, or poor credit, you might even end up paying more.
You'll also be financially liable for the payment, even if both parties are on the agreement. So roommates should honestly discuss how they will pay the bill — such as using a shared account — and what happens if anyone can't. Don't rely on your roommate to handle everything.
Where to Start
Before you make any decisions about sharing auto insurance with anyone, start by learning more about how it may help or harm you. Meet with an experienced insurance agent with your partner or roommate to get the scoop. No matter what you both decide to do, you can be confident that you've made the best choice.
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