Undergoing a divorce is a complicated life event that influences various aspects of a person’s personal and financial life. Amidst the multiple problems to handle during and after a divorce, many people overlook updating their auto or car insurance policy. Car insurance after a divorce: does undergoing a divorce affect my auto insurance policy? That is what you will find out in this comprehensive guide.
Although it may seem like something unimportant unlike other changes, adjusting or making changes to your auto insurance coverage can have potential implications for your legal obligations and financial health. This is why it is very important to understand how divorce can impact your car insurance coverage and policy.
What Happens to Car Insurance After a Divorce?
As mentioned previously, it is essential to understand the impact of divorce on auto insurance. Moreover, when a marriage comes to an end, you can insurance quote might no longer show your recent financial status or living situation. In other words, a divorce can alter or change your insurance coverage needs significantly and different ways.
Here is a more comprehensive view of how a divorce can affect your car insurance:
Splitting Vehicles
One of the things that comes after post-divorce that you need to pay attention to is who will get to keep the vehicles, especially if you and your ex-partner had shared ownership of cars. Hence, you will need to choose who will keep each vehicle and update its policy.
The splitting of vehicles involves transferring ownership and updating the auto insurance quote. Therefore, you will first transfer the title of the car to the person who will now be keeping its paperwork. Then, this person will and must update the insurance quote to show the new status and remove the ex-spouse from the policy.
Adjusting Coverage According to New Needs
Your financial situation and lifestyle can change after a divorce. Accordingly, your insurance coverage needs might experience changes as well. Firstly, may need to change your coverage level based on your current circumstances. You may also want to change from a joint insurance quote to an individual policy since you are now a single driver. This process is known as changing coverage type.
Premium Impact
Yes, after a divorce, the cost of the premium for your car insurance will change. Many ways is life-changing event can influence your insurance premium. When you understand these factors, you can effectively handle your expenses.
Firstly, car insurance providers usually provide lower premiums for married couples. Hence, if you change to a single individual, this may cause higher premiums.
Secondly, your individual circumstances and driving history will be reassessed by the insurance company to change your premium rates as well.
How Does Divorce Affect Car Insurance?
It may not seem like much but a divorce and affect car insurance significantly. The process involves separating or updating a joint quote which increases the premium cost as a result of changes in risk assessments and loss of marital discounts.
Additionally, you will have to make changes to vehicle ownership and coverage levels to make sure you meet the divorce settlement terms and state insurance laws. It is also important that your coverage needs are met during the divorce process.
How To Get Car Insurance After a Divorce
After a divorce, if you are looking for a new auto insurance policy that meets your new needs and circumstances while you meet legal requirements and manage costs, several steps will be considered. Here is a step-by-step guide to follow to get a post-divorce car insurance policy after separating from your former spouse:
- Evaluate your car insurance needs.
- Check your current quote.
- Understanding existing coverage.
- Find out your new and current needs.
- Check the divorce settlement term.
- Research multiple car insurance companies.
- Compare insurance providers.
- Get quotes.
- Compare coverage.
- Ask for discounts.
- Choose the right policy.
- Check your state insurance requirements.
- Choose a deductible.
- Begin the application process.
- Provide the necessary information.
- Be transparent.
- Review the policy terms carefully.
- Sign.
- Update or cancel your existing joint policy if you had one with your ex-partner.
- Update your vehicle registration.
- Review your policy periodically.
If you are not sure about anything when getting an auto insurance quote after your divorce, you can consider getting professional advice. So, consult a financial advisor or insurance agent to help you explore the insurance market and understand your options to meet your needs.
Common Mistakes to Avoid When Updating Your Car Insurance Policy
There are challenges involved with updating or making changes to your car insurance. Here are the common pitfalls to avoid at all cost:
- Ignoring premium changes.
- Neglecting to update the insurance quote.
- Overlooking the need for a new insurance policy.
When you are applying for a new insurance policy, make sure that you evaluate your coverage needs again to prevent having too little or too much coverage on insurance.
