Shared Insurance Policies: A New Measure of Commitment for Modern Couples
A recent nationwide survey indicates that sharing insurance policies is emerging as a significant signal of trust and commitment amongst couples. The study, which polled 1,000 U.S. renting couples, found that a substantial 42% view joint insurance as the modern equivalent of getting married.
Practical Benefits and Emotional Significance
Sharing an insurance policy offers both practical financial benefits and carries considerable emotional weight, according to the survey. The data revealed that a large percentage of renting couples already share insurance policies, underscoring the prevalence of this trend:
- Automobile/car insurance: 84%
- Renters’ insurance: 69%
- Health insurance: 58%
- Life insurance: 52%
Furthermore, over half of these couples turn to their insurance company or agent for advice on insurance-related matters. The survey also noted where couples seek insurance advice:
- Insurance company/agent: 52%
- Family and friends: 42%
- Financial advisor or planner: 28%
- Bank or financial institution: 27%
Redefining Relationship Milestones
The survey’s findings reveal that shared insurance policies are reshaping how couples view traditional markers of commitment. Nearly one-third (29%) of renting couples consider sharing an insurance policy as significant as moving in together (35%), highlighting its growing importance in modern relationships. For example:
- 35% of respondents see signing up for joint insurance as a bigger step than saying “I love you” for the first time or moving in together.
- 40% of respondents equate sharing a joint policy with actions like sharing a streaming password or adopting a pet.
- 26% of renting couples believe a shared policy will make breaking up harder.
Key Advantages of Joint Policies
Joint insurance coverage provides various benefits to couples. Mike Moore, Nationwide’s VP, Personal Lines Business Optimization, noted that 62% of couples believe shared policies help deepen relationships while displaying trust and commitment. “Customers choosing to place their insurance policies with a single carrier can experience numerous benefits and the carrier might have policy recommendations when they understand the customer’s holistic protection needs,” he said. The advantages he listed include:
- Savings: Consolidating policies often translates to reduced costs. Moore emphasized that shared assets make merging insurance policies a logical financial move, simplifying management through fewer bills and renewal dates. Splitting the cost of a single insurance policy can offer savings, which is especially helpful when lease agreements require residents to maintain a certain amount of renters’ insurance.
- Shared coverage: A single joint policy can guarantee that both partners receive the same coverage level. This ensures uniform protection for both individuals, which isn’t always the case when each person independently secures coverage.
Despite these benefits, a lack of knowledge about joint insurance policies prevents some couples from fully leveraging them. For instance:
- Nearly 30% of respondents acknowledged they did not understand all the benefits of sharing an insurance policy.
- Approximately 20% of renting couples mistakenly believed that only the named driver could operate a vehicle under a joint auto policy.
- Common myths persist, such as the perception that joint insurance requires a joint bank account (17%) or that you must be married (16%).
Educating Clients on the Value of Joint Ownership
According to Moore, insurance agents play a crucial role in helping clients understand the advantages of shared policies. “The first step is to be a good advisor,” he said. Agents can educate couples on how joint policies protect all of their belongings and expand liability coverage to both tenants. Less than half of the surveyed couples knew joint policies could lead to lower premiums and a streamlined claims process. Moore stressed the importance of education, stating, “Despite the benefits, many couples remain unaware and misinformed of the full value of joining their insurance to a single policy that would cover both (or multiple) vehicles and named drivers.” Agents can help couples identify available options, as, according to Moore, the best way to learn about what’s available is for clients to talk to their agent.
Implications for Insurance Professionals
These findings have key implications for insurance agents and advisors. Moore stated that the trend toward shared insurance represents a significant turning point. “Agents can help renting couples that are exploring joint insurance policy options, starting with understanding the number of belongings the couple owns to ensure they get adequate coverage,” he said. This assessment should encompass everything from clothing, furniture, jewelry, art, electronics, bedding, appliances, and home goods, he added. It’s also important for the agent to know where those items are stored. “Are they in the rental unit itself or do they store some of them on assets like a watercraft or a motor vehicle?” Moore asked. “After the assessment, the agent can advise the couple if it would be appropriate to add optional coverage to the renter’s policy to ensure the best protection.”
Ayo Mseka, with over 30 years of experience reporting on financial services.
