Question: If you were on your parents’ auto insurance policy what happens if they divorce? Whose policy do children on driving age go in case parents’ separation? What is the criteria to determine this?
Answer: The criteria is firstly who has the custody and secondly where the children live. The parent who has the custody probably has the children as well. So, the parent with whom children live is the one who should insure them under his/her policy if necessary. I can hear you asking if they have joint custody. This may be the case as older children may be under joint custody. In such cases, you need to look at where the cars are mostly kept. Whichever parent’s home the cars kept the children should be insured under that parent’s auto insurance policy.
Here is an article on auto insurance after divorce. I think this question is answered towards the end. Divorces can get messy and emotional. However, certain arrangements have to be made for a life after it. Automobile insurance coverage for whole family members is one of them.
Parents may be tempted to go with the cheapest option. For example, one parent may have a bad driving record and insuring under the parent with good driving history can work out cheaper. Be as it may, where the cars are kept and who has the legal custody are two key criteria to abide by. If things get complicated it is best to talk to a broker to sort things out or call your insurer to discuss your options. If your insurer knows the full situation and yet happy to provide coverage you should be alright.
You probably don’t have to do the switch on the day your divorce is finalized. But you should do it as soon as you can. Also, you don’t probably have to be legally divorced to make these adjustments. You should adopt your policies accordingly if you are already living separate lives and especially in a separate property.