In Ontario, both married and common-law couples generally receive the same insurance benefits and discounts when bundling policies. However, there are notable variations between insurance companies. Let’s compare how bundling insurance for couples differs if you are married or in a common-law couple, and the process to follow.
Married Spouses: What Does This Mean Legally?
Marriage in Ontario is a legal union under both provincial and federal laws. The Divorce Act and the Family Law Act govern married spouses. This term only applies to a person you legally marry. Marriage grants specific legal rights and responsibilities, and is a registered union with the government.
What Classifies Common Law Partners?
Common law partners are those who live together in a romantic relationship without being legally married. In Ontario, a common-law relationship typically exists after cohabiting for at least 3 years. Additionally, the definition can include having a child together and maintaining a relationship of some permanence (generally, one year). The Family Law Act applies to common law partners, though some rights and obligations differ from those of married couples. There is no formal process to recognize a common-law union; it is based on the facts of the relationship.
Bundling Insurance for Couples
While some insurance companies may offer slightly better rates for married couples due to a perceived lower risk, common-law couples also qualify for insurance discounts from bundling. They can add their partners to their policies.
Key Points:
Bundling Discounts
Combining home and auto insurance with the same provider can lead to significant savings for both married and common-law couples.
Insurance Coverage
Both married and common-law couples can be included on each other’s insurance policies, including auto and home insurance, and often benefit from the same discounts and coverages.
Importance of Disclosure
When purchasing insurance, it’s crucial to accurately disclose your marital status and relationship to ensure you’re getting the correct coverage and avoid potential issues.
Falsely claiming to be married to your insurer is a form of insurance fraud, which is illegal and can lead to serious consequences. This act is considered misrepresentation and can result in criminal charges, jail time, and financial penalties.
Potential for Lower Rates
Some insurers may offer slightly lower rates for married couples, but this is not universal, and common-law couples can still achieve significant savings through bundling.
Employee Benefits
Common-law partners are also often recognized under employer-sponsored insurance and benefit plans, allowing them to be included in their partner’s coverage.
Marital Status: Is There a Difference?
Two people coming together to form a new family is a significant milestone that impacts their lives completely. Combining your lives involves careful planning to ensure it’s smooth sailing for the two of you. When looking for insurance, be sure to let our insurance representatives know if you’re married or in a common-law relationship.
Whether you are planning to marry or not, moving to a joint policy is a relatively smooth process. One of the most crucial insurance tips for any couple is to speak with your broker before any major changes take place. This will involve confirming that relevant information is up-to-date and that you have full coverage.
Change of Name
If one (or both) spouses legally changed their surname as part of the marriage union, please make sure your insurer knows. This way, they can update your surname and driver’s licence number for your auto insurance.
Taking Stock
Deciding to share your life with your chosen partner is about more than just joining your lives together. It’s also about combining two people’s personal possessions, including artwork, tech, or furniture. Collectibles and other belongings are often stored in a single dwelling.
While it can be a challenge at the best of times, there is one helpful tip to remember for married and common-law couples. Once you move in together, it’s a good idea to take the time to do a thorough home inventory list of your shared belongings. This can feel like a big chore, but it can benefit a married couple for two reasons:
- Should you encounter a disastrous loss due to fire or flooding, a home inventory list will help you track the damage.
- An additional bonus is that this list will give you a clearer sense of the combined value of your high-value items.
Prized Possessions
Nowadays, giving your partner a piece of jewelry is no longer a tradition of married couples. You will typically buy more expensive tokens as part of the marital ceremony. Your engagement ring and wedding bands should be appraised for value and included on your contents insurance policy or as a jewelry insurance floater.
Bundling Insurance for Couples: Home or Condo Insurance
One of the more critical insurance tips for married or common-law couples starting their lives together is merging into one joint living space. Whether it is a house, townhome, or condo, when it comes to homeowners’ insurance, one policy makes the most sense. One homeowner’s policy will cover the property, building, and contents.
Moving from two homes down to one means one less policy to pay premiums on. Regardless of official relationship status, insurance companies don’t typically offer different home insurance discounts. According to several insurance websites, the primary factors influencing home insurance rates are related to risk assessment, such as:
- The age and condition of the home
- The presence of security systems
- The homeowner’s claims history
Bundling Insurance for Couples: Auto Insurance
When it comes to auto insurance, combining also makes a lot of sense. You may both have your vehicles, but if you’re living together, you need to list each driver on the other’s policy. It would be more economical to have multiple vehicles on a single policy, which could amount to a multi-car discount. Or, only one spouse has a car, but both have a driver’s licence. In that case, you must list the other spouse on the policy, even if they don’t intend to drive the vehicle.
If you’re making the switch from single to married, you should call your insurance provider and let them know. Changing your status can lead to lower car insurance costs.
If one of you has accidents, tickets, or a DUI, merging policies may raise your premiums. Similarly, if one person in the relationship has special coverage needs (e.g., a luxury car or high-risk home location), separate policies may be more cost-effective.
Pros and Cons of Bundling Insurance for Couples
Whether you are married or common-law partners, premiums can be lower for those in relationships living under the same roof. The thinking is that the driving activity of this group will be less risky than that of a single person living on their own. “It’s one of the perks of being married,” explains Nabil Ghamraoui, CEO and co-founder of Premium Insurance Brokers in Windsor, Ont. “The reason for the discount is that being married means you’re likely ‘more responsible,” states Ghamraoui.
There are some exceptions, though. For example, the discounts for married high-risk drivers will not apply. According to the Financial Services Regulatory Authority of Ontario (FSRA), a high-risk driver may have multiple convictions, at-fault accidents, or may have missed payments or cancelled policies. There is also the possibility that an insurer may decline to continue the current coverage, even if the spouse has a good record. Why? This may happen if your insurance carrier refuses to accept adding your spouse with a bad record. Before deciding on a scenario like this, please consult with your isure broker so they can give you a recommendation that will get you the best overall results as a couple.
Wait for Your Insurance Renewal Before Cancelling
If you’re moving in together and combining separate policies, you may need to cancel at least one insurance policy. In some cases, you may cancel multiple policies to get a new one that works for both of your insurance needs. This option will typically offer you proper financial protection against loss. A critical insurance tip for married couples is to wait for the renewal date of at least one of the policies before cancelling. That way, you can save what may be a significant amount of money by avoiding the cancellation fee. However, in some cases, the savings you receive when combining your policies can outweigh a cancellation fee.
Children and Other Dependents
Sometimes marriage isn’t just about combining two lives. According to each spouse’s family situation, they may bring other dependents with them into the household. This includes children or other care dependents, such as family members, who are elderly or have a disability. This insurance tip for married couples is essential. Why? Dependents living in a household are an addition under that property’s home insurance.
DYK: If you live with your parents, are on their auto insurance policy, and continue to live with them after you get married, you cannot remain on your parents’ current plan. Insurance companies will require you to have your auto insurance policy with your spouse, separate from your parents.
Concluding Thoughts: Bundling Insurance for Couples
In summary, there may be slight variations in how some insurers treat bundling insurance for couples. The general principle is that both types of relationships have entitlement to the same bundled insurance benefits and discounts in Ontario. Couples should focus on disclosing their situation accurately. Additionally, consider exploring options with different insurers to find the best rates and coverage for your needs.
Canadian households have been feeling the squeeze from all angles Read more
While it’s often true that getting two or more policies Read more
Figuring out when you should update your policy can be Read more
