What should you change on your insurance when you get married or move in together in Michigan? Combine and re-shop your auto, home and umbrella coverage, and make sure both of you are named on the policies. Michigan auto insurers can't rate on marital status, so savings come from combining policies, and unmarried partners need extra care because many policies don't cover them automatically.
The short version: Married couples: combine policies, compare companies, and raise your limits to match your combined assets. Unmarried couples: each of you should be a named insured on the auto and home policies, or carry your own, because a live-in partner generally isn't covered just by living there.
There's no "marriage discount" on Michigan auto insurance
In many states, getting married lowers your car insurance. In Michigan, insurers can't set auto rates based on marital status, and they can't use the number of licensed drivers in a household as a stand-in for it (MCL 500.2111). What does change is the household: how many cars, which drivers, whose driving record, and whether home and auto are with the same company. Combining policies and bundling home and auto is usually where the savings are. See how much bundling saves in Michigan.
How Michigan PIP treats spouses vs. partners
Personal injury protection (PIP) pays medical bills and lost wages after a car crash. Under Michigan law, an auto policy's PIP covers the person named in the policy, that person's spouse, and relatives of either domiciled in the same household (MCL 500.3114(1)).
- A spouse living with you is covered by your PIP.
- An unmarried partner is neither a spouse nor a relative. If they don't have their own Michigan auto policy and aren't a named insured on yours, they aren't covered by your policy's PIP that way. If they're hurt as a passenger and no policy covers them, they claim through the Michigan Assigned Claims Plan, where medical benefits are capped at $250,000.
- Being a listed driver isn't enough. Michigan courts have held that listing someone as a driver doesn't make them a "named insured" for PIP. Ask for both partners to be named insureds.
Your PIP choice also applies to your spouse and resident relatives. If you've opted out of PIP medical, chosen $250,000 with exclusions, or chosen the $50,000 Medicaid option, a new spouse's health coverage affects whether that choice still works.
Homeowners and renters: who's actually covered
ISO's 2011 homeowners form (HO 00 03 05 11, an edition many carriers still build from) defines "you" as the named insured and "the spouse if a resident of the same household." Other people are generally covered only if they're your relatives living with you, under 21 and in the care of you or a resident relative, or certain full-time students. Carriers' forms vary, but the pattern is common.
- Married: your spouse is covered once they live with you, but tell your agent so the policy is set up correctly and their belongings are counted in your contents limit.
- Unmarried: your partner isn't an "insured" under that form. Their belongings at your home can be covered only if you ask after a loss, and they share your contents limit. They have no liability coverage under your policy unless the carrier adds them. A partner's children may not be covered either. Ask your agent to add your partner or have them carry their own renters policy. See Michigan renters insurance.
Rings, gifts and combined belongings
Engagement rings and wedding jewelry often exceed jewelry theft limits. ISO's 2011 homeowners form caps theft of jewelry at $1,500, and carriers' limits vary. Schedule them separately. See scheduling jewelry and valuables. When two households become one, re-check your contents limit, too.
Raise your limits to match what you have together
Two incomes, two sets of savings, a home and possibly two or three cars add up to more for a lawsuit to reach. We generally recommend auto liability above Michigan's 250/500 default and an umbrella of at least $1 million once a couple's assets are combined. See who needs umbrella insurance.
Your checklist
- Send us both sets of declarations pages: auto, home or renters, umbrella, boat or motorcycle.
- Decide who owns and titles each vehicle; the owner or registrant must carry Michigan no-fault coverage on it.
- Make both partners named insureds, or keep separate policies that cover each of you.
- Update beneficiaries on life insurance and retirement accounts, and consider whether you need more life insurance now.
Frequently Asked Questions
Does car insurance go down when you get married in Michigan?
Not because of the marriage itself. Michigan insurers can't set auto rates based on marital status. Couples often save by combining cars on one policy and bundling home and auto, and comparing several companies shows where the savings are.
Is my unmarried partner covered by my car insurance in Michigan?
Not automatically for PIP. Michigan PIP covers the named insured, their spouse and resident relatives. An unmarried partner should be a named insured on your policy or have their own. Being listed as a driver isn't enough.
Is my boyfriend or girlfriend covered by my homeowners insurance?
Generally not. Under ISO's 2011 homeowners form, people living with you are covered if they're your spouse or your relatives, and carriers' forms often follow that. Ask your agent to add your partner or have them carry their own renters policy.
Should we combine our insurance after getting married?
Usually yes. Combining cars and bundling home and auto with one company often lowers the total cost, simplifies coverage and keeps your limits coordinated for an umbrella. Compare several companies before you combine.
Do I need to schedule my engagement ring?
Usually. Many homeowners and renters forms cap jewelry theft (ISO's 2011 form at $1,500). Scheduling covers the ring up to its scheduled amount, and often for loss as well as theft.
The bottom line
Combining households is one of the best times to save and to fix coverage at the same time. The two mistakes to avoid are leaving a partner off the policies and keeping limits that fit two single people instead of one household.
J. Jacobs & Associates is an independent agency in Lake Orion that has insured Michigan families for more than forty years. We represent more than twenty carriers, so we can quote your combined household with several companies at once and set it up correctly from day one. Call (248) 693-6455 or start a quote.