If you or someone you know is ready to embark on a new life together, your insurance is not likely to be a topic you discuss. This is why we have assembled a short checklist of “Insurance Tips for You and Your Sweetheart.” Yes, there are some things you can (and should) do to keep you both covered as your relationship grows.
Stage 1: First Date
As you head out for those first dates together, there isn’t much you need to think about when it comes to insurance. (That’s good, because you will more than likely have other things on your mind.)
If you find yourself in the situation of driving your sweetheart’s car, you will be covered: Car insurance follows the vehicle and extends to a permissive driver, even if the driver is not the owner of the car. This only applies if you drive his or her car on occasion. If you realize you are driving his or her car on more regular basis, you should call your insurance agent for appropriate coverage.
Keep in mind that if you are in an accident that exceeds your sweetheart’s policy limits, your own car insurance may apply as secondary coverage.
Stage 2: Moving In
You’ve met, you’ve fallen in love, you’ve found “the One”; and if you have decided to take the leap and move in together, there are a few things to keep in mind:
1. Auto Insurance: Now that you live together, you will have to register each other as “other drivers in the household.” Each of you should give your insurance agent a call to add your significant other to your respective car insurance policy. Some companies may allow you to combine care insurance policies, but some may require the cars to be co-registered before putting both of you on the same policy.
2. Renter’s or Homeowner’s Insurance: This insurance is a little more complicated. Different insurance companies have different rules. Some might allow you to add your significant other to your renters or homeowner’s policy, even though you are not married. In this case, do not forget to review your personal property limits to make sure that it is adequately mirrors the combined value of your personal possessions.
a. Make sure if you do consolidate policies that BOTH of you are listed on the policy as “named insureds.”
b. It would also be wise to call your insurance agent to help you evaluate your individual situation.
Stage 3: Getting Engaged
Yay! The big question was asked and the answer was yes! Now begins the beautiful season of preparations and planning.
1. Jewelry Endorsement: One of the first things to do is cover the ring. A typical renter’s or homeowner’s policy only covers jewelry up to $1,500 per item. If your ring exceeds that amount or you wish to protect it against perils such as “loss of a stone from its setting” or “mysterious disappearance,” you should purchase a scheduled jewelry endorsement. This endorsement can be added to your renter’s or homeowner’s policy to ensure your new ring is covered.
2. Wedding Insurance: This insurance can be purchased up to two years prior to the big day and will cover attire, jewelry, venue, service provider failures, bankruptcy or no-shows. It will also provide liability protection for the event itself. Make sure you give Frimark/Keller a call or click hereto be sure you are covered during the planning process.
Stage 4: Getting Married
Now that you two have tied the knot, it’s time to combine your insurance policies to one. Here’s what we recommend:
1. This is a great time for a Policy Review. As you and your new spouse are combing all your insurance policies, it’s a great time for a full policy review. Consider increasing your liability limits: now that you have combined assets, you are even more at risk of losing everything in a lawsuit. Don’t forget about the discounts you qualify for now! Most carriers offer discounts for married couples, multiple cars on the same policy and bundling multiple policies with the same insurance company. We can help you with that.
2. Add an Umbrella Policy. Protecting your joint assets, savings, bank accounts, retirement plans and future earning with an umbrella policy.
3. Life Insurance. As you enter life together, say “I love you” with Life Insurance. Life Insurance won’t take away the tragedy of your spouse’s death, but it will help alleviate financial hardship when suddenly half of the family income is gone. It doesn’t need to be complicated – in fact, we can make “Life” really easy for you.
If you have any questions along the way, give your Protection Team at Frimark/Keller & Associates a call. We are here to help.