It may sound strange, but divorcing couples need to make sure to tell their car insurers the news. Getting a divorce will affect a couple’s car insurance rates, but if this is left unchanged, it may subject someone to potential problems down the road. Most insurance policies have a statement that says they need to be informed when any change in status occurs, whether that be moving, buying a new car or getting divorced.
Failure to inform a car insurance company of a marital change could result in cancellation of the policy. However, many states have laws set in place that protect an individual from being denied a claim while going through a divorce. States have also guaranteed that one spouse cannot simply drop another one from coverage without written permission.
It is to your advantage to notify your insurer as soon as these major life changes occur. If your ex-spouse gets into an accident, and your name is still on the insurance policy, you may be held responsible for the other driver’s injuries or damage to the vehicle.
Anyone going through a divorce should secure separate car insurance as soon a new address is established or a spouse has vacated the home. Once someone is no longer residing in the home listed on the policy, that person should not be covered by the car insurance tied to that address.
Divorce is difficult enough, but figuring out the assets and the claims can be particularly cumbersome and draining. Unfortunately, a joint car insurance policy is one of those things often not addressed until it is too late.