Whether married, common law or simply living together, you and your partner living together means a lot of shared property and responsibilities. One thing to consider is if you and your partner should share insurance coverage. We’ll discuss what sharing an insurance policy means and a few different scenarios to consider when you’ve moved in together.
Sharing an Insurance Policy
Sharing an insurance policy means you’ll both be listed on the policy. You’ll both be responsible for meeting the terms and conditions (such as paying the premium) but you’ll both be equally insured.
For car insurance, you can be added on as an insured or as an occasional driver. If you are on the registration papers, you should be added as an insured; if you’re not but may occasionally drive the vehicle, you should be added as an occasional driver. If you live together, both partners should be on the policy (as long as you’re both licensed to drive, of course).
For property insurance, your should ensure you have enough coverage for your combined belongings and the rebuilding cost of your home, if applicable.
Who gets paid in the event of a claim? Here’s an example: You’re living together and both listed on the insurance policy. A fire occurs and unfortunately destroys your home and belongings. Luckily, it’s a covered claim so your insurance responds. Your partner owned the home and had more property than you, but the insurance company will simply provide a single amount to both of you. No partner will be individually compensated or be given more or less – unless they’re not listed on the policy at all.
We live together, should we share our insurance coverage?
If you’re living with your partner, you should share insurance coverage:
- Add each other to your car insurance policies as an additional insured or occasional driver
- If one partner already has property insurance, add the other partner or purchase a new property insurance policy together
- If you have other insured property, discuss with your broker if you should add your partner
This will make claims a lot easier and ensure you’re both covered.
We’re not living together, should we share our insurance coverage?
If you’re not living together you may not need to share insurance coverage. You should each have your own property insurance (home, condo or renter’s insurance) and may have separate car insurance policies. The exception is if you frequently drive each other’s vehicles or share ownership of property – then you should add each other to the policy.
Talk to your broker for more details about adding your partner to your insurance policy.