Monthly Archives: November 2012

Going through a Divorce & Auto Insurance Implications

When you are going through a divorce auto insurance may be the last thing in your mind. Nevertheless, it is one of the things you have to deal with in time. When people marry they start putting all your finances together and this will normally include automobiles and insuring them jointly or under one policy.

Usually, you may be advised to do this to save money or avoid arranging separate cover for every one of them. You will need to go onto your partners policy and he/she goes on yours regardless of how you arrange cover. This is one of the conditions most insurers will impose on you.

auto insurance after divorceDivorce is a mechanism that breaks this togetherness in many ways and it applies to your policies as well as your assets. First you may need to decide who keeps what cars and where the teenagers in driving age start residing after separation. The choices made will affect the policies naturally. But there is no need to worry about it is not something you cannot sort.

First, you will need to look into arranging your separate policy now that your partner is not living with you. This could lower or increase your premium depending on how was your ex’s and your driving history and what was the arrangement. Sometimes a partner with good driving records may help the other find decent premium.

One of the main concerns may be how the teenage drivers will be insured after separation. General rule is that they are insured by the parent who has the custody of them. But this is not straight forward anymore with the ways parents can arrange custody. Since they are now teens it may be arranged loosely rather than giving full control to one parent.

This could complicate things. They may be insured by the policies of both parents if they are sleeping in both houses and driving the cars owned by mother as well as the father. The best thing may be to explain how the driving and sleeping arrangements are and let your broker or agent come up with a solution.

You will need the company about the level of access you afford to your children over your cars. It is possible that children may get more than they bargained for from a divorce financially. They may get their own cars thanks to mother and father feeling guilty about the separation. If this is the case, you may have to buy them separate policies. And you don’t need to worry about them driving your car or going onto your policy as long as they have their own cars and insurance.

However, it is better to be open about the situation and talk to your insurer. Not telling them anything may not be a solution. If you explain clearly that your children occasionally sometimes stay with you they will take this into account when they are calculating the premium. Since they have their own automobiles and not full time resident at your home you may be able to get away with slight extra premium charge.