Married individuals, as well as parents and children, often share the benefit of a joint auto insurance policy. Now most companies offer this same benefit to any individuals living at the same address. This could be roommates, parents and adult children, or unmarried couples living together.
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These types of policies are fairly new and have only come into play in the last 6 years due to the large amount of couples living together and the variety of living situations that exist. Even though it seems like this has been the case for awhile, auto insurance companies tend to go the traditional route because, legally, it is easier to define.
Is there a name for this type of auto insurance policy?
Different insurance companies have different names for policies that are shared by individuals who are not married to each other. Some popular names for these types of policies are:
- Domestic Partner Insurance
- Non-Married Insurance
- Roommate Insurance
- Non-Relative Insurance
A few insurance companies have started policies called Engaged Couple Policies. This is for couple who may or may not live together. You have to be getting married within 12 months of the engagement. If that does not happen, the amount of the auto insurance discount you received for the time you were engaged will be added to your account.
If you don’t know what your insurance company calls the policy, or aren’t sure what to ask for, you can just explain your living situation to the insurance company and they can tell you what policies they have that would match. The most critical thing is that you live at the same address.
What is necessary for these types of policies to work?
Besides living at the same address, in most cases this is a requirement, there are a few other things necessary for this type of policy to work. Generally, the vehicle needs to be registered in the same name as the name on the lease or mortgage papers.
In some cases, you may have one person who owns the home while the other person owns the vehicle. In this case, both individuals will have to provide proof of residency. This can be provided through your driver’s license or by providing a copy of a bill that comes to the residence in your name.
Also, the person with the better driving record will need to be the main person on the policy. If both drivers have an equally good or equally bad driving record you can decide who the main person should be based on age and gender.
If both people are over the age or 25, it does not matter who the main person is. If one person is over 25 and the other is not, the older person should be the main person on the policy. If both people are under the age of 25, the woman should be the main person on the policy.
This is due to the fact that people ages 16-25 have higher auto insurance premiums and males in this category have even higher premiums than females in this category. However, you need to remember that the main person on the policy is the one who will be held financially responsible if the premium is not paid and is the one who can make changes.
What are some of the problems with these types of policies?
The main problem with this type of auto insurance policy is what to do when the two people on the policy no longer live together. At least in a marriage situation, people live together and stay together until a divorce. A divorce is legal and the insurance policy can change based on the legal date of the divorce.
In the case of domestic partners, engaged couples, or roommates, break ups or a change in living arrangements is not a legal situation. Both individuals may have a different version of events or a different time line as to when the relationship or living arrangements changed.
The main holder of the policy is the one who can make changes so this can be difficult if that person does not do the right thing or make the change in a timely manner. It is hard to legally define or defend these types of arrangements.
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