Car Insurance after a Divorce

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What happens to car insurance after a divorce? Going through a divorce is filled with emotional challenges and other situations that you may need help overcoming. After a divorce, you are required to change insurance policies. If you and your ex-spouse share auto insurance, you’ll need a personal policy since you’re no longer together.

Car Insurance after a Divorce

Most insurance companies will allow you to split one policy into two. While some may require canceling the existing policy and getting a new one. This means that you and your ex-spouse will get a separate auto insurance policy once you get divorced.

This article contains all the information you need to know about your car insurance after a divorce. We have helped to curate helpful tips and other insight, see that you read to the end.

How Does Divorce Affect Your Car Insurance?

Most insurance companies offer discounts on auto insurance for married couples. This discount usually ranges from 5 to 15% and this can help to save a substantial amount of money. Generally, married couples tend to benefit from a variety of discounts when they share the same insurance policies. So, once there’s a divorce, it’s most likely that you will lose the discount and you’ll be liable for the cost of maintaining a separate policy.

It may see unfair but drivers who are divorced are considered to be a high risk by some insurers. And once this happens, your car insurance rate will skyrocket after divorce, be aware that your premiums will be on the high side.

Asides losing multiple driver discounts, there’s a possibility of losing your discount for bundling auto insurance and home insurance if you no longer own a joke and now live in a rented apartment.

On the other hand, the premium differed between married and divorced drivers is not that exorbitant. An average divorced driver may pay about $50 or months every six months for car insurance than when they were married.

Nevertheless, there are some insurance companies whose state laws do permit married couples to use their marital status in purchasing insurance policies while others simply limit the use of marital status in rating plans for couples. It is important to seek information from your insurance company to understand how marital status can have an impact on rates in your state.

How Long Can A Spouse Stay On Car Insurance After Divorce?

After a divorce, you are required to purchase a personal car insurance policy since you would be living elsewhere. Also, your auto insurance should reflect your sole ownership and the address you are moving to. Before you cancel your current insurance policy completely, you must have a new policy that would replace the previous one. This is to ensure that you are adequately covered even after divorce.

It is essential to note that, insurance coverage varies, it largely depends on the insurance company you are working with. It is advisable to reach out to your insurer or an insurance agent about the type of coverage offered after divorce. 

How Do I Maintain My Insurance After Divorce?

We understand how difficult it can be to maintain the stress level associated with divorce, which is why we are here to guide you on how to maintain your insurance even after divorce. To maintain insurance after divorce, it is it worthy that titles change. This means that there would be transfer of ownership and properties will most likely be divided.

Firstly, ensure that your name is on the title of the car you are insuring. In a situation where both of you are still listed on the auto insurance policy, and either of you make use of the car, there’s a tendency of being liable for the cost of medical bills in the event of an accident. Reach out to a divorce lawyer who would help arrange the change of title o your auto insurance or any other type of insurance you both share.

Does Divorce Affect Your Credit Score?

Most definitely! After divorce, your credit score is likely to be affected temporarily. This will be till you are able to find your balance as time goes by. If you have a good credit score, you can qualify for low payment for car insurance compared to when it is a bad credit. Although, you can improve your credit score over time, be prepared for higher premiums till you are able to boost your credit score.

Collision and Comprehensive Coverage after a Divorce

A lot of people seek ways to reduce cost on car insurance after divorce. This is due to change in income and other factors. Perhaps, you own an older car, it makes financial sense to drop collision and comprehensive coverage. This would help to reduce the premiums on your car insurance and you can also be able to channel your income towards other things.

Nevertheless, the option of dropping your collision or comprehensive coverage is not applicable if you still owe payment or your car is leased. Your insurance company may not allow you to drop this coverage but you can still reach out to them for other alternatives.

Liability Insurance after a Divorce

According to the state law that governs insurance in most states. Every driver is required to have minimum liability coverage for protection against road perils. In most cases, you can decide to purchase above the minimum requirement for your state, depending on your needs.

However, once you and your spouse get separated or divorced, this typically means you no longer have large assets, so you do not necessarily need to carry as much liability insurance as you had before getting divorced. 

Homeowners insurance after divorce

What happens to homeowners insurance after you and your spouse divorce or separate? Well, once there are situation like that, all the possessions will be divided. Either of the spouses will be required to change their living arrangements. It could be one or both of them. However, the most important thing is that the belongings or assets in the home will be split. Once there’s a change in the ownership of the home, ensure that this change reflects on your current homeowner’s policy.

Carry your insurance company, so they are aware of the changes made. Information about ownership, occupancy, and other personal property in the home. Reaching out to your insurer after a divorce is one of the best decisions. Since you and your spouse live under the same roof. They are in the best position to enlighten you on the policy type. And coverage you should maintain even after divorce.