Ending Your Marriage May Impact Your Car Insurance
Getting married can really change your life. When you get married, you typically will receive a discount on your car insurance coverage. On average, this discount is about five to fifteen percent. There are also multiple car discounts that can be applied as well.
Sadly, almost half of marriages end in divorce. When a couple decides that they no longer want to be married to each other any more then they should consult a divorce lawyer and then call their auto insurance company. This is because when you get divorced, your car insurance premiums will change.
Your auto insurance company needs to be notified of any changes that will impact your policy. This includes divorce. Some couples have tried to skirt the system and have not notified their auto insurance companies of their change in marital status so that they can split the costs of the premiums and still receive a discount that they do not deserve. Auto insurance providers can actually cancel insurance policies because of this. This is because it is a form of fraud. The divorced couple would no longer be living together or be in the same household so the neighborhood and crime statistics would change.
By law, you have one month to call your auto insurance company and report to them that your divorce has been finalized so that new insurance policies can be written for each driver after they go their separate ways. If a couple does not, then they could face a canceled policy which will bring them much higher auto insurance premiums in the future.
If a couple owns cars together then they should consider dividing them and having their names removed from each others titles and registrations. In most cases, the insurance company will need documentation to prove that this has occurred. Even if a car is still jointly owned, there cannot be a mutual car policy discount applied because the drivers live in separate households. These discounts are often between ten and twenty five percent so losing them can really hurt drivers in the pocket book.
People who are thinking about getting divorced should try to do their research before their divorce is finalized. It is a good idea to contact several auto insurance agents and have them run some insurance quotes for you. Each driver has their own personal driving record and risk factors so their insurance premiums will increase because of the fact that they no longer have those discounts any longer.
If your divorce is complicated, then you will want to discuss any issues with an attorney regarding who will end up owning the vehicles. If the vehicles are financed then it might be harder to sell them and be able to split the profits if there are any. Many couples just opt to continuing paying their own car payments and go their separate ways after signing over the registration to their soon to be ex spouse. It is more cut and dry and can save people a lot of headaches,
Before deciding on where to move after a divorce, you should examine the crime statistics because every location is different. After a divorce, your insurance premiums will be more expensive so it can really be cost effective to live in a low crime area. There are statistics available online for every zip code so consider doing your homework before buying or renting a new home.
It might also pay to consider buying a newer vehicle with better safety features. This can really help to lower your insurance premiums and if you throw in an anti-theft device you can save even more money.
In order to save as much money as possible after a divorce, couples should shop around separately so that they can find the best deal on an insurance policy. Divorce can be a very hard thing to go through. Many couples feel overwhelmed because they are dealing with the division of their assets, debts, and child custody issues. Most people totally forget about the fact that they have car insurance policies that are held jointly.
It is important to be as proactive as possible because you do not want to wake up one day and find out that your car insurance company has canceled your policy. Some ex spouses have dropped their former spouse from their car insurance policy without notifying them ahead of time which can become a huge issue for people because they are unknowingly driving while uninsured. Always make sure that you have your ducks in a row before your divorce is finalized. Contact your auto insurance company for advice so that you can make sure that you have positioned yourself properly to get low insurance premiums after your divorce is finalized because you want to be able to have peace of mind.
