How Accidents Involving One Driver On A Joint Policy Affect The Other
Car insurance policies have an ingredient that essentially follows the pattern of other types of insurance. Put more people on the policy, and that normally means lower rates for all those covered by the insurance company. A joint policy can save money on premiums, but it can also end up costing more money if one of the insured drivers has a reportable accident.
Marriage, or announced cohabitation, provides a common example of car owners becoming part of a single car insurance policy. Insurance companies routinely approve of policyholders getting married - they consider it a matter of settling into a more mature lifestyle that ideally dismisses risky behavior. And that sometimes is enough for the insurer to offer lower rates.
But there is a caveat. If the bride happens to have a clean driving record, she is entitled to whatever discounts her insurance company might have to offer. The husband, on the other hand, might not have as clean a record, so he is paying more for coverage based on how the insurer views his driving history. Insurance companies base their joint policy premiums based on the risk factor brought into play by the driver with the worst driving record. The combined total cost for the dual coverage could then be how much both parties have been paying, and might be well above what the good driver has been paying for car insurance. The argument over who pays the most for the policy can then begin.
Insurance companies usually assume that more people added to a car insurance policy increases the possibility of an accident, and they set premiums accordingly. A reportable accident by anybody on a policy will almost certainly increase the cost for everyone named on the policy. Even the primary driver covered by a joint policy can expect to have to pay more for car insurance, despite how clean his/her driving record might be. Bringing down the higher rates can involve a dedicated search to find an insurer offering less expensive coverage. That's where the Internet can really be a big help. There are many established and reliable insurance firms are online, waiting to help solve your car insurance troubles.
As with just about any auto insurance policy, there are some steps that can be taken to help ease the expense. Adults can enroll in defensive driving courses, a step that insurance companies are willing to recognize as a legitimate effort to improve one's driving record. These courses can reduce the risk factor assigned to joint policies and might be enough to attract lower rates, or at least not have insurers raise them.