You anticipate dealing with the split of marital assets when you file for divorce. Many people, however, overlook the impact of their divorce on their car insurance. Divorce can affect not just your mental well-being but also your car insurance in various ways. It ranges from cost adjustments to purchasing new coverage.
When a marriage ends, ex-spouses will spend a lot of time dividing up their assets, belongings, and even the cars they own together.
To take sole possession of the car, you may need to revisit finance agreements at the dealership, and your car insurance policy will almost certainly be affected by the divorce.
Because car insurance policies are often based on joint ownership, divorce and car insurance can be tricky.
Some car insurance companies will let you stay on mutual insurance until the coverage is due to be renewed. You might be able to save money by doing so. Once your divorce is finalized, car insurance companies expect you to have separate car insurance policies. Depending on your insurance company, you may be permitted to stay on the same insurance until the renewal date. However, you should check to see if this is permitted before finalizing your divorce and ensure your new policy is in place before allowing the old one to expire.
The connection between divorce and car insurance premiums
The amount you pay for car insurance is the amount you spend to protect your vehicle from accidents and other damage. Premiums aren’t one-size-fits-all, and they can differ significantly from person to person, city to city, and even state to state. When determining car insurance prices, insurance companies consider several factors. On the other hand, your marital status has an impact on your rates, both directly and indirectly.
Single vs. Married
Married persons, on average, pay a smaller premium. A 35-year-old married guy may expect to pay 3% less for car insurance than a single man of the same age. A 35-year-old married woman can expect to spend 2.82% less on car insurance than a single woman of the same age. This is because married people are statistically less likely than single persons to be involved in car accidents.
Impact of divorce on car insurance
Divorce might also have an indirect impact on car insurance rates. Those married, engaged, or in a long-term committed relationship can save up to 20% on their insurance. After your divorce, you’ll forfeit your discount. People who change their status from “married” to “divorced or single” will see a 36 percent increase in their insurance rates. Men traditionally pay greater premiums than women. A newly divorced woman may reduce hers once the divorce is finalized. Your premium may be affected by where you live after the divorce.
Car insurance costs in the city are more than in the outskirts, and they differ even more from one suburb to the next. Multi-driver discounts, or savings associated with holding multiple policies with the same firm, such as auto and homeowner’s insurance coverage, may also boost your costs.
Impact of divorce on car insurance deductibles
A deductible is the amount of money you must pay out of pocket if you file a claim. You can choose from various deductibles offered by insurance companies; the lower the deductible, the higher the cost. Divorce may indirectly impact your deductible. Depending on your financial circumstances following the divorce, you may need to pay a smaller premium, which would necessitate selecting a greater deductible.
How to separate car insurance after divorce
Before the divorce is finalized, you’ll need to prepare ahead and do some research to separate your car insurance.
Get in touch with your insurance agent
Contact your agent or insurance provider as soon as you know the date of your separation or divorce. Begin looking for alternative auto insurance options using your post-divorce information, such as a new ZIP code. When you move to a new address, you don’t have to separate your insurance policies immediately. However, certain insurance providers may require separate policies if you live in separate addresses.
If one of you has moved out of your formerly shared home, you’ll need to update the car’s storage address if it will remain on the same policy, or you’ll need to get separate policies for each spouse.
Change your car’s titles
Cars formerly titled in both spouses’ names are frequently retitled in only one spouse’s name. Contact your insurance agent and your state’s DMV office to determine the proper procedure. Agents prefer to separate insurance policies to the DMV retitling appointment date as near as feasible.
Submit an official request for the removal
Provide a signed removal request. Finally, you will have your insurance policy for a car registered in your name.
What more to know about divorce and car insurance
Divorce can have an impact on practically every element of your life. This ranges from the beneficiaries named on your car insurance plans to how you pay for your insurance. With everything else going on, it’s wonderful to know that you have a trustworthy contact at Way.com that can assist you in managing your insurance needs during your divorce.
Consult your Way.com representative for information on proceeding with car insurance premiums following your divorce. We can assist you in creating policies that will provide you with a great deal of peace of mind when you need it most.