Auto Insurance After Divorce

Divorce can be a complicated process, and it's natural to wonder about the impact on shared assets, including auto insurance. In most cases, married couples are required by insurance companies to share car insurance policies if all vehicles are kept at the same address. So, what happens when a couple divorces and their living situation changes? In general, if you and your former spouse are no longer living together, you will need to get separate auto insurance policies. This is because insurance companies typically require that all vehicles on one policy be garaged at the same address. While it may be possible to remain on your husband's auto insurance policy temporarily, especially if you are still living together, you will eventually need to obtain your own policy to ensure you have the necessary coverage.

You'll need to inform your insurer about your divorce

Yes, you'll need to inform your insurer about your divorce. Most insurance companies require married couples to share car insurance policies for all cars that are kept at the same residence. If you move during or after a divorce, it's important to notify your policyholder and get a separate policy.

In most states, courts automatically issue temporary orders (sometimes called "temporary restraining orders" or "temporary injunctions") whenever someone files for divorce. These orders are meant to maintain the financial status quo during the divorce process and prohibit either spouse from taking certain actions, including changing or canceling insurance policies. If you live in a state that doesn't automatically issue temporary orders, you'll have to ask a judge to issue one that addresses health insurance (and any other issues that are relevant in your case).

Temporary orders typically last until your divorce is final. Once your divorce is finalized, you'll likely have a specified window of time to notify your insurer. In most cases, you must inform your insurer within 30 days after your divorce is finalized. However, it's important to check with your insurance agency, as the time frame may vary depending on the state you live in and the terms of your policy.

If you fail to inform your insurer about your divorce, your policy could be canceled, and claims could even be denied. Additionally, you may be responsible for any overpayment of medical expenses. Therefore, it is crucial to notify your insurer as soon as your divorce is finalized and make the necessary changes to your policy.

When updating your policy, you'll need to remove your spouse from your existing policy and get their signed consent if they are not the primary named insured. You may also need to update state registration and title records if you're changing your last name due to the divorce. It's important to work with your divorce lawyer to review your current policy and check with your insurance agent to determine the specific adjustments needed.

You'll need to get a separate policy if you move

If you move to a new location during or after your divorce, you'll need to get a separate auto insurance policy. This is because most insurance companies require married couples to share car insurance policies only if all cars are kept at the same address.

When you move, you'll need to notify your current policyholder and get a new, separate policy. You'll also need to update your address and other contact information with local authorities. If you have a new address, your premium will likely change, and you'll need a separate policy.

If you have a teenager of driving age, they will likely need to be listed on both parents' car insurance policies. If you have a new address, you'll need to update the garaging address for the vehicle if it stays on the same policy.

It's important to speak with an insurance agent to get advice about your specific situation. They can help you understand how to separate a car insurance policy during a divorce, which will look different for every couple.

You'll need to remove your spouse from your policy

When a marriage ends, couples often spend a lot of time and energy dividing assets and belongings. If you are on your husband's auto insurance policy, you will need to be removed from it. Divorce will likely affect your car insurance policy, especially if you jointly own your vehicles.

In many cases, both spouses are considered "named insureds" on the car insurance policy and are responsible for paying premiums. The current, jointly-owned policy should be cancelled at the same time new, individual policies go into effect. This ensures continued coverage and that both parties are paying only for their own premium.

If you have children or relatives named on your shared policy, you will need to assign them to one of the new policies. This may need to be included in the divorce decree, so check with your lawyer on the specific requirements.

Divorcees will need to purchase their own auto insurance and may need to file for a vehicle title change in ownership with the state. You will also need to update your address and other contact information with local authorities if you have moved to a new location.

It is important to have a new policy in place before the cancellation of your current auto policy. Ideally, it should start on or before the final date of your shared auto policy. After a divorce, you will need to get your own car policy once you are living elsewhere, and the car's title reflects your sole ownership and new address.

You may be able to stay on a joint policy until renewal

Divorce is a difficult process, and it requires jumping many hurdles to separate your money, property, and insurance. One of the most common questions people have when going through a divorce is whether they can stay on their spouse's insurance policy. In the case of auto insurance, the answer is that it depends on your insurance company and individual circumstances.

Most insurance companies require married couples to share car insurance policies if all cars are kept at the same residence. So, if you and your spouse are living together, you can stay on the same policy until you move out or get divorced, whichever comes first. At that point, you will need to get your own policy. However, there may be benefits to staying on a joint policy until renewal, as this could save you money.

If you and your spouse have separated and are living in different residences, you will need to get separate auto insurance policies. This is because most insurance companies require that cars insured on the same policy be garaged at the same address. Additionally, if you are the primary named insured (PNI) on the policy, you can remove your spouse from the policy at any time, but if you are not the PNI, you can only remove yourself. In either case, you will need to get your spouse's consent to make any changes to the policy.

It's important to note that insurance rates for divorced or single people may be higher than for married people, as many companies offer discounts for married couples. Additionally, you may lose out on multi-car and multi-policy discounts. However, if your ex-spouse had a poor driving record, you may see your rates decrease.

To ensure a smooth transition, it's recommended that you speak with your insurance agent in advance to understand how your current insurer handles divorce and separation. You should also start researching new auto insurance options, as you will likely need to make some changes to your policy. Keep in mind that you will have a specified window of time, usually 30 days, to notify your insurer of your divorce and make any necessary changes to your policy.

You'll need to notify your home insurer when you move out

Divorce can be a stressful time, especially when it comes to untangling shared accounts and insurance policies. If you and your husband shared a car kept at the same residence, you can remain on the same auto insurance policy if you continue to live together. However, if you are moving out, you will need to take several important steps regarding insurance.

Firstly, you will need to notify your home insurer when you move out. It is crucial to understand your current home insurance policy and how it might change when you relocate. Contact your insurance provider to update them on your new living situation, including any changes in address, property details, and occupancy. Your insurer will need to know details about the new property, such as its location, value, age, materials, and safety features, as these factors influence the premiums for your new home.

While you can keep the same insurance provider, you will need a new home insurance policy since your old and new homes are considered separate properties with different risks. Your new policy's cost may differ due to factors like the home's construction, area climate, and potential risks, such as a swimming pool.

If you are moving out of state, your current insurance agent may not be authorised to write insurance policies in your new state, so you may need to find a new agent. It is best to notify your insurer as soon as you know you will be moving, and you should not cancel your old policy until you no longer have ownership of your previous property. To avoid coverage gaps, consider having overlapping policies for both your old and new homes if there is a transition period between residences.

In addition to homeowners insurance, you will also need to address car insurance. If you move out of state, you will need a new car insurance policy, even if you stay with the same insurer, as each state has different coverage requirements and regulations. If you remain in the same state, you can keep the same insurer but must notify them of your change of address.

Divorce often necessitates changes to insurance policies, and it is important to understand your options and obligations. By taking the appropriate steps, you can ensure that you maintain the necessary coverage during this transition.

Frequently asked questions