Divorce and Car Insurance: What You Need to Know | CarInsurance ...

Divorce comes with significant impacts to car insurance and ownership.

Life changes are significant events that you should discuss with your insurer. Things like moving, changing jobs and commutes, having children and getting married are types of these, but those are normally all positive changes we each relish and embrace.

So what about things that aren?t so good, like getting divorced?

The breakup of a marriage can be?devastating?on multiple levels: emotionally, professionally, financially and more. And divorce is an unfortunate reality that occurs each and every day. Regardless, divorce happens to many of us throughout our lives, and it?s important to take the proper steps to ensure you come out ahead. Let?s talk about the major issues divorce raises in terms of car insurance and more.

Ownership of Automobiles?

One of the realities of divorce is that ownership of any vehicles, which are normally jointly owned, will be split to one spouse or the other. Whether ordered by the court or arrived at through a mediation process, the spouse who gets a vehicle will either have to refinance a vehicle on their own, or have the bank or lender agree to remove one spouse from the loan so ownership lies with just the single recipient.

It?s important to keep in mind that if this process doesn?t take place, the spouse who no longer has possession will still have legal responsibilities for any damages resulting from a crash or collision, and will also be responsible for keeping payments up to date with the bank or finance company as well. Another important consideration are taxes and registration fees. Until the automobile is out of your name, even if don?t drive it, you?ll still cannot escape these liabilities.

Car Insurance Considerations

The ownership questions also relate directly to your car insurance policy. An owner on the title of the car, even if it?s co-owned between soon-to-be-ex spouses, cannot be excluded from coverage. However, if the divorce isn?t final but ownership of any vehicles has been settled, then a spouse can then get their own policy that no longer features the ex.

Expect to lose any multiple-car discount if you?re just separating two vehicles, and you?ll also lose any discount that?s given from the insurer from being married. It?s possible to stay with your current insurer, but a divorce is such a significant life-change that we recommend using it as a time to obtain quotes from multiple companies, just to ensure you?re not paying too much for your policy premiums.

There?s also the possibility of a move, for one or both spouses. This too is a piece of information you?ll want to notify your insurer of as soon as possible. Vehicle garaging location is also an important consideration that insurers will factor into the cost of your premiums.

At the very least, your insurer should be notified of these changes within 30 days of the finalization of the divorce, but it?s possible to get these matters settled before the divorce is final, especially if you still have an amicable, friendly relationship with your soon to be ex.

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