There are financial, emotional and ownership issues surrounding a marriage breakup. You will have to deal with vehicles too at some stage. There are a few points to consider to effectively separate automobiles and polices when the time comes. Probably, the arrangement, level of coverage and premium will be considerably different. How does being divorced affect automobile insurance is discussed below in details.
1: Removing Ex from a Policy
It could be a simple consideration especially if both parties were keeping separate policies. You would have been required to include a partner when you were sharing the same home. Now that you are parting and one (or both) of you moved out, it should not be a problem to drop the ex off coverage. Just call the agent and tell them.
2: There Will Naturally Be Changes in Circumstances
Divorce will mean a lot of changes in circumstances, which will have financial implications. It is probably as good as any time to have a look at the types of covers, limits and deductibles. It may be that the ex arranged it and there are a lot of things you don’t agree.
Have a good look at what you really need now and the budget you have for insuring automobiles. There are many other reasons why people revisit policy arrangements. Some want more coverage others like to cut costs. Whatever the new objectives they will need to be reflected on.
3: Do You Need New Auto Insurance?
There is a high chance that you may need to start with the new for several reasons. One could be that the ex keeps the old policy. The other is that it may not be applicable anymore. For example, you may not need a multi-car policy anymore since vehicles are divided.
In any case, it is worth comparing quotes either now or at the next renewal. A few influential factors would be affected by most divorces that take us to next consideration.
4: Automobile Insurance Discounts Lost and Gained
Generally, married people get better discounts. Also, you might have had multi-car or bundled policy as well as homeownership savings. If you are keeping home or buying another one you can arrange new homeowners vehicle insurance and keep the saving. If not, you may qualify for new discounts that are higher than the previous ones overall.
It is possible that you were the one with good driving history. Then, you would save on premiums by dropping the ex with bad record. Mileage is another point to consider in conjunction with address, work and drivers listed. There is a change you will be traveling less or more that will affect the prices.
5: Which Cars Are You Keeping?
Are you keeping the sports or family car? The outcome of this question will affect rates a lot. It is not as expensive to insure a family sedan compared to an SUV or Sports car. You may actually be looking for a new one as well. If so, it is best to check how the alternatives are rated. Choosing a safer automobile can save you thousands of dollars over the life of it. Besides, they are better for protecting the family
6: Do You Need to Relocate?
Relocation affects car insurance rates a lot, as they are generally based on zip codes. Being in a city center or safe hamlet will affect premiums considerably. Moving into city will increase the rates substantially while the opposite is true as well. Moving to another state requires completely new policies, as they are based on state regulations.
Moving to a different address alone is a good enough reason to start shopping around. Many other changes that come with a family split will affect the arrangements and costs.
7: Whatever Happens Shop for New Quotes
This advice is given to all motorists regardless of their situation. The point to highlight here is that don’t just assume the current carrier will still be the best one for you even it was highly competitive last time you checked. As mentioned above a lot changes on car insurance after breakup that can make you unattractive risk to them and more appealing to other companies.
Each looks at every piece of information on a quote form differently. For example, you may have been with a company that offers 10% savings to married people. You would have lost it in separation. Credit history is another area that receives varied responses. Maybe the ex-husband had a brilliant or terrible credit score that was beneficial or burdensome last time around. Depending on which one it was you now would be looking for companies care more or less about credit history.
It wouldn’t be a surprise at all that everything needs to be replaced. Probably, the separation was costly and will affect finances for some time. Moving forward, you would want to get the best coverage you can at most reasonable price, regardless of being poorer or richer.
8: Do You Need a Broker or Prefer Online?
It may be a good time to find a different broker. Actually you may need one anyway if you move to another state. With so many other things to attend a broker can take a load of your mind by arranging the coverage you need. One point many people forget is that it is important to be fully informed about coverage arrangements and their implications even you use a broker, which can surely explain them to you.
9: Who Will Insure the Children in Driving Age?
Children would be affected from separation as well. If they are still on parents’ policies it may be necessary to work out which one they will go with or if it is time for them to get their own.
Normally, whoever gets the custody of children should be the one to cover them. They would be living with the parent who has the custody and naturally that is where their residential addresses. Furthermore, your carrier will want you to include any driver living with you.
If you have the joint custody, you should look at where the cars driven by children are normally kept. The address where they are kept should be the address on the schedule and therefore, the parent who lives in there should be the one to insure them.
However, they should probably stay in both parents’ auto insurance if they are driving both parents’ vehicles. You can add anyone on coverage regardless of them living with you or not.
10: Other Factors
Any other factor with the new living and financial arrangements should be considered as well. The best way of determining them is to look at the risks. There may be a lot to consider but many people go through them in normal circumstances as well.