Divorce Can Impact Your Car Insurance Premiums
Almost half of all marriages in the United States today will end in the couples splitting up and getting divorced. One unforeseen complication for many divorcing couples has to do with their car insurance coverage.
Many people who are married to each other own their vehicles together jointly. When a divorce happens, it can be hard to divide ownership of the vehicles especially if they are being financed by a bank or other financial lending institution.
It is the responsibility of all divorcing couples to contact their car insurance companies when their divorce has become finalized. If a driver leaves the household and moves to another location then the insurance company needs to be aware of this as well.
This is due to the fact that a change in zip code can impact the insurance premium rates that the driver will have. In most cases, once a couple decides to end their marriage, at least one of the spouses will leave the family home and live somewhere else.
This person could end up moving to a safer or more dangerous area.
Insurance companies need to know about this change immediately because it will change the overall amount of risk that the drivers bring to the table.
If you will be getting divorced then you need to understand a few things. The first is that you and your spouse need to decide on how you will divide up the vehicles that you have. Each driver should make sure that their other spouse will not be personally or financially responsible for each other’s vehicle and car insurance coverage.
Getting divorced will most likely make drivers have to pay more for their coverage. This is because most couples receive multi car and other car insurance discounts. Once the marriage is dissolved, these discounts are no longer able to be used so the premium rate will be adjusted. It is a good idea for people who are getting divorced to consider waiting to take any action until their car insurance policy is near the end of its term.
Car insurance policies come up for renewal once every six months so it can be better to wait to begin to file the paperwork and move out of the home until it is near its end. Contact your car insurance agent because they will be able to help you with this process. Each driver will need to have their own individual car insurance policies so it is important to contact an agent for assistance.
An insurance agent will help you try to find new discounts that you may qualify for such as the good driver and low mileage discounts. This can be a great way to get cheap car insurance coverage after a divorce.