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If you and your spouse have decided that you will be getting a divorce, you will need to start preparing for the division of assets and finances. As a part of the divorce process, they may need to refinance the vehicles separately and separate insurance policies. Auto insurance rates can change significantly after the divorce due to multiple factors.
If you and your spouse have a joint auto insurance policy listing both as "named insureds", then the current policy will be canceled and new individual policies will be issued covering the vehicle(s) received by each spouse as part of the settlement. This will help to ensure continued coverage and that both parties are paying only for the premium on their own policy.
No, you cannot. After divorce, your car's registration will reflect your address and name as the registered owner. By law, in most US states you are required to have your car insurance policy. As part of the divorce, your joint insurance policy will be canceled, and you will need to get a new policy under your name.
The only exception is if your ex-spouse is willing to let you drive their car. In that case, neither your address nor your name can be on the car's registration. Your name will not be on the auto insurance policy either. You will be driving the vehicle as an acquaintance. Some insurance companies may have limitations. Your ex-spouse should check with their insurer.
During a divorce, the complete separation of finances is required. It includes bank accounts, credit cards, loans, insurance policies, and retirement plans. There are several steps a person will need to remove their spouse from the car insurance policy. Most likely it will happen with a judge's order but spouses can mutually agree to it as well.
Ideally, the custodial parent should have them on their auto insurance policy. If the premium increases because of the child, you can ask your ex-spouse to share it or get it covered through the child support order. However, if your ex-spouse cannot afford to pay, then you will need to decide if you can allow the child to drive by paying the premium. On the other hand, if you bought a car for your child, then you could be on the hook for the premium.
There is a myth that car insurance premiums increase because of a divorce. In almost all states, insurance companies do not take divorced or single status as an input to determine your auto insurance. However, your insurance premium may change because of the following reasons:
Divorced and single parents have a lot to manage when it comes to running their households. On top of everything else, they must ensure they are covered properly with car insurance. Because circumstances have changed, insurance companies may offer unique policies and discounts for divorced and single parents looking to lower their car insurance premiums. Finding these companies and the policies they offer can mean a substantial financial savings over the course of a year. This article will focus on particular companies more likely to offer more affordable policies or discounts to divorced and single parents, and the specific coverages these parents should have or don’t need anymore.
When shopping for a car insurance policy, it pays to shop around. Many insurers offer standard discounts to everyone, but some insurance companies have policies specifically tailored to the needs of divorced and single parents. These may include discounts for low mileage, safe driving, maintaining multiple policies, and loyalty discounts.
AARP (American Association of Retired Persons) is one insurance provider that offers such discounts. AARP has partnered with The Hartford to provide discounts and options to divorced and single parents. These options include discounts for safe drivers, discounts for taking an online driver safety course, an accident forgiveness option, free identity theft protection, and more.
Additionally, Allstate has some convenient options for divorced and single parents. Through their website, Allstate offers discounts for those with multiple policies, safe driver discounts if you’ve been accident free for the past five years, and discounts for consistent good grades. They also have a unique "Pay As You Drive" (PAYD) program -- a potentially money-saving option for divorced and single parents that put in low annual mileage.
Finally, Farmers Insurance provides some good options for divorced and single parents. Customers can potentially earn additional discounts for installing an Anti-Theft device, having an Anti-Lock Brake System or Passive Restraint System, and for taking an approved driver safety course.
When it comes to car insurance, there are some specific coverages that divorced and single parents should have or don't need. Various states require different levels of coverage, so it is important to check with your local regulations before purchasing a car insurance policy.
Liability is the primary coverage that needs to be addressed. Whether you are married or divorced, liability is the most basic and essential coverage. This coverage will provide protection if you cause an accident and are found to be at fault. The two primary components of liability are Bodily Injury and Property Damage coverage, which will provide protection if there are injuries or property damage caused by an accident.
In addition to liability coverage, divorced and single parents may want to consider an Uninsured Motorist/Underinsured Motorist coverage policy. This will come into play if an accident is caused by an uninsured or underinsured motorist and includes protection for property damages and any bodily injury you or your passengers may suffer.
If you are divorced or single, it is also important to have coverage for Uninsured Motorist Property Damage. This coverage will provide protection for damages to your car just in case the at-fault driver does not have enough coverage for their liability policy, or does not have auto insurance at all.
Single and divorced parents should also look into Medical Coverage, also known as medical payments coverage or personal injury protection. This type of policy will help pay for medical bills and other related expenses (e.g. rehabilitative care, lost wages, funeral costs), regardless of fault, in the event of an injury caused by an auto accident.
Finally, Coverage for Personal Property is another type of coverage that is worth considering. This covers any personal property of the insured, other than their car, against damages or theft. This type of coverage is not always required, but can be beneficial in the event of theft or damage to personal property due to an auto accident.
Divorced and single parents face a number of unique challenges when it comes to managing their households, and car insurance is no exception. Many insurance companies offer discounts and special policies tailored to the needs of single and divorced parents. Knowing which companies offer the best discounts and benefits, as well as which coverages are necessary for proper protection, can be a great way for parents to save money and ensure their coverage is adequate. With the proper coverage, parents can have the peace of mind that they will be covered in the event of an accident.
Warning: This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.