Over half of the U.S. population will cohabit with a partner at some point in a lifetime. The direct auto insurance writer, Esurance markets to cohabiting couples to streamline their finances by purchasing one policy per household, regardless of their official marital status.

Now State Farm and Allstate have started giving what is referred to as the marriage discount to domestic partners. This is a very common discount given to almost all married couples. As long as the partners live in a state that approves of civil unions or domestic partnerships. Married couples save an average of 10-20%.

Younger couples 25-30 can save the most because car insurers discount policies on a percentage basis. Marital status helps offset inexperiance the car insurance companies charge more for, so savings could be around 15% for domestic partners.

Muti car discounts also help save if you have more than one car under the same policy, because of potential carpooling and reduced miles. People that are mo married of in a registered partnership can’t qualify for the discounteven if they live together, because there’s no evidence they drive togeyher or are more responsible.

Same sex marriages or domestic partnerships are a very small minority of the overall couples so auto insurers should not have to raise premiums to cover reduced profits. And the lower income could be more than offset by domestic partners flocking to State Farm and Allstate.

Still, their are always unintended consequesces, but when it’s lower prices for consumers, everyone wins.

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Filed under: Allstate • Auto insurance discounts

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