How Divorce Affects Your Car Insurance Policy

04 November of 2014

Your divorce is final. What happens next? Getting divorced is certainly one of the hardest decisions any person makes in life. While the most delicate issue is child custody, breaking up can affect all kinds of legal matters; including your car insurance. According to a study shared by Daily Infographic, about 50 percent of all American marriages end in divorce. If you are currently going through this you are not alone.

Once everything has settled, there are several questions you need to ask yourself to get a clearer picture of what needs to be done with your car insurance. Not sure where to start? Take a look at this:

Whats the First Step to Take?

Notify your insurance company if an asset, such as a car, changes ownership. Double-check how your insurance premiums may change. It is understandable that going through this process can be overwhelming, so consider explaining your case to a lawyer; in case you need legal advice, check out this firm. These experienced lawyers will guide you through every step.

How Does Divorce Affect Your Insurance?

When your divorce is finalized, you may remove your ex-partner from your policy. This can be a simple process, especially if both parties were keeping separate policies.

How is Insurance Affected If I Relocate?

Your policies may be affected when you move. Insurance companies base their coverage on the location where the vehicle is stored. If your place of residence changes, your insurance policies change as well, for better or for worse. You may meet your insurance agent to make the necessary changes based on your new circumstances. Bear in mind that updating your new address is a must.

Am I Still Eligible For a Discount?

There are certain discounts applicable to married couples, which might not be valid anymore. You will lose multiple-policy discount, if you take one car and your ex-partner takes the other. If you choose to change your insurance company, you will start the insurance process from scratch.

What if I Have Children That Are Legally Able to Drive?

A childs name should be included on the car insurance policy of their legal guardian. If you share joint custody with your ex-partner, children should be listed on the policy that is the same as their primary address.

Being armed with valuable information is important for handling the changes that occur after a divorce. During this difficult stage of your life, it is vital to understand how policies like your new car insurance premium are calculated. Fortunately, you can obtain helpful information from experts to make the process less complicated.

Did you find this helpful? Let us know your thoughts in the comments section below.

Previous:

Getting Right Insurance Can Be Easy With A Little Quest

Next:

Information On Refunding PPI Claims

You may also like