Unmarried couples may get auto insurance discounts

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An increasing number of states are passing legislation that allows couples involved in domestic partnerships and civil unions equal rights to that of married couples, Insurance.com reports.

Many car insurance companies have followed suit by offering discounts to heterosexual and same-sex partners that are recognized by their state as having a legal relationship.

Depending on the state, the grammar used to describe a legal relationship may vary. Civil unions and domestic partnerships fall in the same umbrella of legal relationships, according to the website.

All insurance companies are required to accord with state laws in how to treat domestic partnerships and civil unions. However, certain agencies are more vocal than others about informing the public about their discounts.

Statistically, married couples are less likely to file a claim than a single person, according to Insurance.com, therefore discounts are given to them. While a couple's driving record affects the insurance premium, and ultimately the rate varies from state to state, a discount can be up to 10 percent, the news source states.

For instance, one company recently announced a discount to those in civil unions in Illinois following the state's approval of the Religious Freedom Protection and Civil Union Act, which gives those in civil unions similar rights to married couples.

David Peasley, research director of gay and lesbian outreach organization Community Marketing, said that travel and beverage industries started engaging such domestic partnerships 20 year ago and companies that adopt that philosophy experienced an increase in customer loyalty. Community Marketing states that the gay and lesbian community makes up more than 10 percent of the consumer market.

"Insurance companies are becoming more active," Paisley says. "All the research shows that the first thing any company in any industry needs to do is get their own house in order. If you start advertising to the LGBT [lesbian, gay, bisexual and transgender] communities and don't have the right personnel policies in place, it can actually become a negative."

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