Insurance is probably not top of mind on your wedding day! And certainly not when you first embark on a new relationship.
That’s why we’re here. We’ve put together a checklist of our top “Insurance Tips for Sweethearts.”
Read on for what we recommend to keep both of you covered as your relationship grows!
Stage 1: First Date
As you are heading out for those first dates together, there isn’t much you need to think about when it comes to insurance. (And that’s good, because you will likely have other things on your mind.)
As your relationship progresses, if you find yourself driving your sweetie’s car on occasion, you will be covered: Car insurance generally follows the vehicle and extends to a permissive driver, even if the driver is not the owner of the car.
However, this only applies if you drive his or her car on occasion. If you drive your significant other’s car on a regular basis, you should call your insurance agent to ensure you have the appropriate coverage.
Keep in mind that if you are in an accident that exceeds your date’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 know you’ve found “the One.” If you decided to take the leap and move in together, there are a few things to keep in mind at this stage of the relationship:
1. Auto Insurance:
Now that you two 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 will allow you to combine car insurance policies.
2. Renter’s or Homeowner’s Insurance
Add your significant other to your renters or homeowner’s policy, even though you are not yet married. Don’t forget to review your personal property limits to be sure that they adequately mirror the combined value of your personal possessions.
If you decide to consolidate policies, make sure that BOTH of you are listed on the policy as “named insureds.”
We recommend checking in with your insurance agent for guidance on your individual situation.
Stage 3: Getting Engaged
Ah! The big question was asked, and the big answer was given! Congrats! Let the wedding planning begin.
1. Jewelry Endorsement
First up, be sure cover the ring! A typical renter’s or homeowner’s policy only covers jewelry up to $2,500 per item if lost or stolen.
If you want to protect your ring against perils such as “loss of a stone from its setting” or “mysterious disappearance,” we recommend purchasing a scheduled jewelry endorsement. At a cost of approximately $12 per $1,000 coverage, this endorsement can easily be added to your renter’s or homeowner’s insurance policy.
2. Wedding Insurance
Wedding Insurance can be purchased up to 2 years prior to the big day and will cover attire, jewelry, venue, service provider failures, bankruptcy or no-shows, as well as provide liability protection for the event itself. Be sure to be covered during the planning process.
A McClain Insurance agent can assist you with Wedding Insurance.
Stage 4: Getting Married
Now that you’ve tied the knot, it’s also time for your insurance policies to become one. Here’s what we recommend at this stage of the relationship:
1. Review your policies with an independent agent.
As you and your new spouse are combining all your insurance policies, this is a great time for a 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.
Also, don’t forget to take advantage of available discounts! Most carriers offer discounts for married couples, multiple cars on the same policy, and for bundling multiple policies with the same insurance company. Our team can review your options and apply any available discounts
2. Add an Umbrella Policy.
Protect your joint assets, savings, bank accounts, retirement plans and future earnings with an Umbrella policy. Higher liability limits are always a good idea, but they’re especially important for a growing family.
3. Life Insurance
As you enter life together, say “I love you” with Life Insurance. Life Insurance won’t take away the tragedy of a spouse’s death, but it can help alleviate financial hardship. It doesn’t have to be complicated — in fact, we can make “Life” really easy for you!
No matter where you’re at in your relationship, if you have any questions along the way, please give the Protection Team at McClain Insurance Services a call, text or email! We’d love to help!