How Can Divorce Affect Your Auto Insurance?
After divorce, people often forget to take care of a few small but very important details, such as:
- Joint auto Insurance policies;
- Amending will and life insurance beneficiaries; and
- Switching accounts for bills that are on autopay.
In regards to auto insurance and divorce, many couples get discounts due to being tied to their residence or having multiple vehicles. When considering the removal of a spouse from a joint policy, compare auto policies before deciding. Keep in mind the following steps:
- Call your auto insurance agent to have your ex removed from the vehicle you are keeping.
- Check to make sure your auto premium is still affordable. Your driving needs may change - you might not be putting as much mileage on the auto and may be able to reduce your premiums.
- Educate yourself on what discounts you may lose, such as multi-car or homeowner discounts, and potentially what new discounts you may receive, such as being claim-free.
- Find out how the cost of your vehicle affects your coverage. If your spouse’s auto was a BMW and you have a minivan, your comprehensive and collision coverage could cost less.
- If considering moving to a new state, find out how that decision will affect your premiums. Some cities and states have higher premiums than others.
- One of the most important items to look at is insuring your children when they are of driving age. You will have to decide whose policy to list the children on. Most of the time, the custodial parent will need to list them on their policy, since this is whom the child lives with. If you have joint parenting time, it would be whichever parent garages the auto most of the time. There could be times when the insurance company may want both parents to list the children as drivers, even if the parents are divorced.
You can see why a little item is easy to forget. It is vital to have a plan and follow through on it. Little things can quickly become big issues! Contact us today if you require assistance in regards to these issues.