What is Supplemental Spouse Auto Insurance?

Take a moment, and just visualize how dreadful it would be just to imagine your spouse running into a road accident. The thought itself is so mind numbing that you couldn’t keep thinking about it, right?

Ask yourself one thing, if the thought of seeing your spouse in a motor vehicle accident feels so dreadful, what would the circumstances be in an actual accident? Depending on the severity of the accident it can lead from minor to severe bodily injuries. If the crash is fatal, then it can even lead to death.

As shocking as the accident is, it can get even more overwhelming if your spouse is partially or totally at fault in the accident. This can lead to serious legal repercussions, and depending on the severity of the accident it can mount up high medical bills, along with vehicle and property damage repair expenses.

Your spouse wouldn’t just have to compensate their own loss, but they would also have to finance the other driver, and anyone else who has been affected by the accident. So, to save your spouse, and yourself from such heavy financial burdens, it is crucial to consider getting supplemental auto insurance.

In this article you will learn what is supplemental spouse auto insurance, 6 benefits of supplemental spouse auto insurance, types of supplemental auto insurance to choose, along with discussions on specific regulations in states like New York, Michigan and other states.

What is Supplemental Spouse Auto Insurance?

Supplemental spouse auto insurance is an insurance policy that’s specifically designed to protect your spouse from at-fault automobile accidents. Simply put, let’s say your spouse is driving your vehicle and ends up in an automobile accident due to negligence.

So, as it’s your vehicle you would be legally, and financially liable to compensate the other driver, and passengers of that vehicle for bodily injuries, vehicle and property damage. Your spouse would have to bear their own medical bills from their existing insurance policy, or from their own pocket.

Similarly, you would have to claim your own auto insurance policies to get your vehicle repaired or replaced. You both would need to go through a lot of hassle and make multiple insurance claims.

The supplemental spousal auto insurance policy has been particularly created to secure you from all that hassle and to ensure that you can simply compensate all these costs that your spouse is responsible for with a single insurance policy.

The best part is the supplemental spousal insurance policy covers your spouse’s medical bills, loss of income, liability coverage, vehicle/property compensation, legal costs, and even funeral expenses.

This is an additional layer of financial safety, depending on the coverage limit you can compensate a significant amount from the supplemental spousal auto insurance. Later if it’s needed you and your partner can finance more from your own auto insurance policies, or deductibles.

6 Ways Supplemental Spouse Auto Insurance Protects You and Your Spouse Financially

Supplemental spouse auto insurance is the ultimate insurance policy for couples. It doesn’t just protect married couples; it also applies for unmarried couples who are in a relationship.

As it was mentioned earlier, the supplemental spousal insurance policy is a major financial safety that covers major expenses such as,

• Your partner’s medical bills, loss of income, legal costs and funeral expenses.
• Liability coverage, also known as PLPD coverage in Michigan, compensates the other driver, their passengers, pedestrians, and any other third party affected by the accident for bodily injuries, vehicle and property damage.

Apart from major auto insurance policies like PLPD insurance, and personal injury protection insurance (PIP), it is crucial to get supplemental spouse auto insurance as it's a great add-on insurance to cover financial compensations that your significant other is responsible for. 

The biggest advantage of having the supplemental spousal insurance policy is it protects you and your spouse in 6 different ways which includes the following.

Medical Bill Coverage

According to the US National Library of Medicine, the average medical bills per person for an auto accident can range from $552 to up to $8000 or more each month depending on the severity of the injury, and the medical complexities involved.

In a year you can expect medical expenses ranging from $6620 to $95,295 or more per person. So, if your spouse needs routine treatment, or if they need to stay hospitalized a long time, then it can lead to a significantly high medical cost.

Even with mandatory insurance policies like PLPD, and PIP, it can get extremely difficult to afford such high medical costs. That’s why it would be extremely beneficial if you have supplementary spousal auto insurance coverage.

Even if you and your spouse have medical insurance, the supplemental spouse auto insurance can be a major backup that can save you from unprecedented financial burdens.

Loss of Income

There’s another crucial factor to consider here. Are you partially or totally dependent on your spouse for household and living expenses such as food, rent, and utility bills among others? If your partner is unable to work for a specific period, let’s say a few months, or a year, can you afford the living expenses? Let alone, if you have kids then you will also have school fees, and other childcare expenses.

Depending on your partner’s financial contributions to the household expenses, it can become difficult, or almost impossible for you to bear these additional costs, especially on your own.

On top of that, if your spouse is the sole earning member of the family that makes things even worse. So, that’s why it’s crucial for you to consider a reliable financial backup plan, and that’s exactly where the supplemental spouse auto insurance comes in.

According to Michigan Legislature, your spouse is legally entitled to get insurance coverage for 3 years with up to 85% of the gross income which cannot exceed $5,189 per month. So, until your spouse is fit to work again in the next year the loss of income coverage in the supplemental spouse insurance policy can hold off the financial loss.

Liability Coverage

The liability coverage only applies when your spouse is partially or totally at-fault for the automobile accident. This includes compensating medical bills, vehicle and property damage expenses of other driver, the passengers of that vehicle, pedestrians, or any other third party who have been harmed by the accident.

In this case, if your spouse gets involved in an at-fault accident with a vehicle that’s registered in your name, then you both are legally liable to compensate the other driver, and any other person affected by the accident.

But with the supplemental spousal auto insurance, you, and your spouse can claim insurance coverage that your spouse is responsible for. This creates this additional financial safety net that safeguards you both, ensuring that neither of you are burdened with unexpected costs.

Vehicle Damage Repair or Replacement Expenses

The average cost of vehicle repair expenses after an accident can range from as little as $50 to as high as $3000, or more. Typically, the vehicle repair expenses mainly depend on the make and model of your vehicle, the price, and availability of its parts, the amount of time needed to fix it, and the location.

If you need to replace the engine, then it can even cost you $10,000 or more. So, there are already several variables when it comes to determining how much it will take to repair your vehicle after an accident. Let alone the cost of replacing it can cost you approximately $20,000 to $50,000. Perhaps your spouse wasn’t feeling well, or due to some sort of negligence your spouse ran into an accident which leaves you with a high financial cost of repairing your vehicle.

Even with your personal auto insurance it can be hard to cover, so it’s best to have a spouse auto insurance coverage that can either cover the total cost or at least up to a significant amount. So, you see the supplemental spouse auto insurance policy can provide you a great deal of financial compensation in such tragic circumstances.

Legal Costs

Based on our research from various legal sources, 95% of motor vehicle accidents are settled out of court. Financial compensation is usually settled through insurance, that’s why most people don’t go for legal disputes which are both time consuming, expensive and can lead to uncertain outcomes.

But that does not mean no one does. Depending on the severity of the accident, especially in cases of fatal accidents, there’s a high chance of serious legal complications.

So, if your spouse gets sued for an auto accident, it can cost your significant other $7500 to $24,000 or more just to fight the case with the help of a lawyer.  Incase if your spouse loses the case then it can lead to a settlement ranging from a few hundred dollars to over $1,000,000. As dire as the legal penalties may be, the court proceedings can leave you and your spouse financially drained.

So, that’s another crucial reason why it’s so important to have supplemental spousal auto insurance, as it will help you bear the costs of the legal proceedings.

Funeral Expenses

As hard as it is to even consider this benefit of supplemental spouse auto insurance, it is still quite necessary. Also, as pathetic as it is, funerals are expensive! Whether it’s held for the sake of maintaining societal norms, or as a procession to bid farewell, funerals always come with a heavy heart.  

In Michigan the average funeral expense ranges from at least $1,000 to over $9,000. And, in other US states the cost varies between $7,848 and $8,300. So regardless of whether you go for cremation, or burial, it will cost you thousands of dollars. 

Depending on your financial capabilities, bearing the costs of your spouse’s funeral expenses can be overwhelming, and extremely difficult at the same time. By having the supplemental spousal auto insurance, you can offer your spouse a proper farewell without worrying about the costs, this may sound uncomfortable, but it is actually essential.

Types of Supplemental Spousal Liability Coverage to Choose

Another key benefit of supplemental spousal auto insurance is it comes with a lot of flexibility. The supplemental spousal liability coverage has three interesting options that you can choose from, which includes

• Joint Policy – Your and spouse can jointly insure the same vehicle. So, in the event of an auto accident either of you can claim supplemental spousal insurance.
• Separate Policies – This option allows you and your spouse to have individual coverage limits. So, if either spouse gets involved in an at-fault accident then it shall be compensated from the individual policies.
• Permissive Use in Events of Separation or Divorce – If you and your partner are no longer together but still continue to share the same vehicle, you have the option to apply for permissive use. So, if an at-fault accident occurs, the supplemental spouse insurance policies will cover the compensation for you and your partner.

Is Supplemental Spouse Auto Insurance Only Mandatory in New York?

Ever since August 1, 2023, supplemental spouse auto insurance has been mandatory in New York. So far, New York is the only state in the USA where spousal auto insurance is legally mandatory. 

The interesting thing is, whether you’re single, married, divorced or widowed, it is compulsory to acquire supplemental auto insurance along with the other mandatory insurance policies.

So, if you’re living in New York, you actually don’t have a choice. If you already have auto insurance, supplemental spouse auto insurance will be added to your insurance policies. While some consider it unnecessary, you can’t deny the immense financial protection that comes with it.  

Even if you’re not married, you can get your boyfriend/girlfriend registered under the supplemental spouse auto insurance policy, which is a huge advantage, especially as it keeps you secured for any financial burden that your significant other is responsible for. 

Based on an emotional perspective you may love them, but from a rational point of view, it would be unfair to impose any liability for which you’re not at-fault. On that note, it is safe to say, mandating Supplemental Spouse Insurance is actually a good thing for New Yorkers.

What is the Supplemental Spouse Auto Insurance Policy in Michigan and Other States?

The supplemental spouse auto insurance is an optional add-on insurance in Michigan and other states in the USA. So, this gives you the liberty to determine whether the supplemental spouse auto insurance is fit for you. 

Although it’s optional, if you’re married, and if you both share the same vehicle, it’s best to get supplemental spouse auto insurance.  

Just so you know, as the supplement spouse auto insurance is an optional add-on insurance you must purchase it additionally with other insurance policies.

Get Spouse Supplemental Insurance Solutions with PLPD Insurance

If you reside in Michigan, and if you’re interested in learning more about supplemental spousal insurance coverage policies, please contact us. This is a great add-on insurance policy, and our representative will guide you through, and answer your queries to help you understand the benefits that you will receive, along with a coverage plan within your budget.

Our experts can also help you create your own customized auto insurance plan. If you’re married, our team can also help your spouse create a bundle plan that will save a significant amount of your budget on insurance premiums.

Final Tip: Consider Getting a Supplemental Spouse Auto Insurance if You’re Married

Here’s a reality check, we often tend to believe that if we’re careful nothing bad will happen to us. Although that’s true to an extent, you can never fully guarantee it. Let alone you can’t really guarantee a situation for someone else, even if it’s your spouse.  

One terrible motor vehicle accident can totally disrupt your financial stability, and it can even leave you and your spouse broke, and bankrupt. So, if you’re married, it’s high time for you and your spouse to learn how the supplemental spouse auto insurance can secure you financially and prevent a multitude of financial hurdles. 

If you live in New York, you will have to purchase the spouse auto insurance policy anyway, but if you’re residing in Michigan or any other state in the US, then it’s totally worth learning about this insurance policy.  

At the end of the day, it’s up to you, and your spouse to determine whether you need it or not. But this is among the best optional add-on insurance policies for couples.  

So, weigh the pros and cons of the supplemental spouse auto insurance policies, if you think that it’s necessary for you and your spouse then it would definitely be a wise decision to consider purchasing this optional insurance plan.

FAQ 

Does adding spouse lower car insurance?

Well, that depends if you’re going for a joint spousal auto insurance plan or a bundle policy that's designed for couples. In general, yes, adding your spouse can significantly lower your car insurance premiums.

What is supplemental spouse auto insurance?

The supplemental spouse auto insurance is a special auto insurance policy that’s specifically designed to protect couples from the financial hurdles of an at-fault auto accident.

What does the supplemental spouse auto insurance cover?

The supplemental spouse auto insurance covers your spouse’s medical bills, loss of income, liability coverage, vehicle damage repair or replacement expenses, legal costs, and funeral expenses. 

Is supplemental spousal auto insurance mandatory?

So far, it’s only mandatory in New York as of 1st August 2023. But it’s still an optional auto insurance policy throughout the USA.