There are financial, emotional and ownership issues surrounding a marriage breakup. You will have to deal with insurance too at some stage. There are a few points to consider to affectively separate the automobiles and polices when the time comes. Probably, the way you insure, level of coverage and premium will be considerably different. How does being divorced affect your car insurance is discussed below in details.
1: Removing Your Ex from Your Policy
It could be a simple consideration especially if both parties were keeping separate policies. You would have been required to include your partner in your policy when you are sharing the same home. Now that you are going your way and one (or both) of you moved out, it should not be a problem to take your ex off your policy. Just call your agent and tell them.
2: There Will Naturally Be Changes in Circumstances
Divorce will mean a lot of changes in your circumstances. One of them is financial implications of those changes. It is probably as good as any time to have a look at the types of covers, coverage limits and deductibles. It may be that the coverage was arranged by your ex 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 your automobiles. There are many other reasons why people revisit their policy arrangements. Some want more coverage, others like to cut costs. Whatever your new objectives they will need to be reflected on.
3: Do You Need a New Auto Insurance Policy?
There is high chance that you may need a new policy for several reasons. One could be that the old policy is kept by your ex. The other is that the old policy may not be applicable anymore. For example, you may not need a multi-car policy anymore since vehicles are divided.
Even if you are keeping your old policy it is worth comparing quotes either now or at the next renewal. There are a few factors that affect rates would change in most divorces that takes 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 discounts as well as homeownership savings. If you are keeping your home or buying another one you can arrange a new homeowners auto insurance and keep the saving. If not, the premiums may still be cheaper after some of the discounts you get.
It is possible that you were the one with good driving history. Then, you would save on premium by dropping your ex with bad driving record. Otherwise, you may see premium increases. Mileage is another point to consider in conjunction with address, work and drivers on the policy. There is a change you will be driving less or more that will affect the rates.
5: Which Cars Are You Keeping?
Are you keeping the sports or family car? The outcome of this question will affect your 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.
6: Do You Need to Relocate?
Relocation affects auto insurance rates a lot. Rates are generally based on your zip code. Being in a city center or safe hamlet will affect your premium considerably. Moving into city will increase the rates substantially while moving out will do the opposite. Moving to another state requires completely new policy and it is based on the regulations of the new state.
Moving to a different address alone is a good enough reason to start shopping for 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 your current insurer 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 your current provider and more attractive to other companies.
Every company looks at every piece of information on your 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 companies varies their rates a lot. Maybe your partner had a brilliant or terrible credit history 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.
Besides, you may need a totally new policy and it may come from a new provider. Probably, the separation was costly and will affect your finances for some time. Anyway, how would being with an expensive insurer serve you moving forward? You want to get the best coverage you can at most reasonable cost.
8: Do You Need an Broker or Prefer Online?
It may be a good time to find a new 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 important point many people forget is that it is your policy after all and you should at least understand the coverage even you use a broker.
9: Who Will Insure the Children in Driving Age?
Children would be affected from separation as well. If you still have children who were on parents’ policy it will be necessary to work out which parent’s policy they will go or if it is time for them to get their own policies.
Normally, whoever gets the custody of children should be the one to insure them under his/her policy. They would be living with the parent who has the custody and naturally that is where their policy residential addresses. Furthermore, your carrier will want you to include any driver living with you in your policy.
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 policy and therefore, the parent who lives in that address should be the one to insure children.
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 to be insured. There may be a lot to consider but many people goes through them in a normal circumstances as well.