Do you and your spouse both have your own car? If so, you may automatically assume that each person should be listed as a driver on the other's auto insurance policy. This may not always be the best idea. Maintaining separate policies can be beneficial in the following situations.

Someone Has A Poor Driving History

The driving history of every driver on a policy will impact the premium that you pay. If one person has a very clean driving history and the other person does not, it may be in your best interest to not list each other as drivers on each policy. The auto insurance provider will assume your risk based on the worst driver on the policy, which will automatically associate both vehicles with the worse driver of the two of you.

You may be tempted to have two vehicles on the same policy due to discounts by having multiple policies with the same company. However, the discount might not cause you to save money. If the bad driver has serious problems in their driving past, such as DUIs, you should keep everything separate.

Someone Has A Really Nice Car

The kind of car that you have will play a large factor in your insurance premiums, which is because of a couple reasons. Sports cars and other vehicles meant for speed often have more risky driving associated with them, even if you are a perfectly safe driver. The nature of the vehicle also can make it a target for theft, since people will be more likely to steal a nice car than a junker. Nicer cars are also more expensive to repair, and more likely that the owner will make a claim to have damage fixed.

Unfortunately, your partner's nice car can cause your car insurance to skyrocket. Leave this vehicle off your policy if you drive an older car, which should keep premiums to a minimum.

Someone Has Poor Credit

When a driving record cannot be used to determine how big of a risk your car, insurance providers turn to your credit report. Your history of taking on debt and paying off bills can easily translate to the type of person that you are. If your spouse has worse credit than you, it is another reason to keep auto policies separate. Make it clear to the insurance provider that you will not be driving the other person's vehicle, and that the same goes for them driving your vehicle.