There are ways to increase the total premium discounts all family members can benefit. You may have spent a considerable time to go over various angles and set them up. After a separation these arrangements now have to be untangled. It may be easier for two people to go their own ways but when there are children involved things can get complicated and there can be legal implications as well. So, let’s have a look at the options.
Children Insured Under Parents’ Policies
A divorce technically has no effect on the coverage arrangements if a teenager is using a car belonging to mom or dad. It doesn’t matter that dad left home and living somewhere else. What is important is the usage and a person doesn’t have to reside with you to be included in your policy.
What shouldn’t happen is that the vehicle is left behind as well. A vehicle belonging to the parent who left home after divorce should go with that person. Otherwise, its ownership should be changed. It cannot be left for the use of children when it is insured on someone else’s name who isn’t living in the address. Vehicles should mostly be kept where they are registered.
Kids Have Own Cars Insured in a Family Multi-car Policy
This is where things start getting technical. Such arrangements can have several vehicles in them. If divorced parents want to split such coverage arrangement the best way of going about it would be that the person left home can take his/hers out of a multi-vehicle insurance and the rest is left as it is.
When someone is under 18 and has a vehicle and coverage it is up to the legal guardian to sign for them. Where the person normally resides should be the address on the documents, even if such person may be staying somewhere else for a day or two in a week.
In other words, the parent with the custody should arrange the policies for underage children’s automobiles with the right address. They should not be covered with mom or dad who lives in a different place.
Where the automobiles are kept most of the time is the key to where they should be insured, especially both parents have custody until they turn 18. Where it would work out cheaper isn’t really the consideration here. Of course, city zip code would be much more expensive if one is living in the city and the other in the country. But the address should be where they actually reside and go to school.
You probably don’t have to do the switch on the day the divorce is finalized. But you should do it as soon as you can. Also, legal position can have little relevant when there is a physical position. You should make the necessary adjustments if you are already living separate lives and especially in different properties.
Things can get complicated and it may be a good idea to seek advice from a broker or agent as to how to adapt to new situation best. You may even have to forget about all the previous arrangements and set up new policies.