What Happens to Your Auto Insurance When You Divorce?

For drivers who are married or in a long-term relationship, the thought of auto insurance is not the first thing you have on your mind when the party's over, but it is certainly an issue you cannot afford to ignore.

When emotions are upset, things can get very ugly; there have been cases where people have canceled their partner's coverage without notifying them. If the individual is driving unaware that they are uninsured and are involved in an accident, the situation can become very expensive in time and money to sort out.

If you are included on the auto insurance policy of your former partner, you need to investigate what you have to do to obtain your own policy as quickly as possible. If you listed your partner on your policy and do not make these arrangements you run the risk of having a claim filed against your policy. And if you have your own policy but move to a new address as a result of ending your relationship you stand to lose your insurance coverage if you do not notify the insurance company of your change of address.

Because your auto insurance policy plays a role in protecting your finances, when your financial circumstances change due to your divorce you may need to rethink your coverage. You need to consider the number of assets you have once the dust settles from the ending of your relationship, such as your life insurance, savings and investment accounts.

For the individuals with children, you may also need to rethink your plan to keep them safe when traveling in the car, in terms of additional auto insurance coverage. If your children are within one or two years of being able to obtain their own drivers license, it's a smart move to investigate whether your auto insurance company provides discounts for good student drivers or if driver education program certifications. Some auto insurance companies will lower the premium of a teenage driver policy every 6 months if no claims are filed against them.

The entire process of extricating your legal and financial affairs when a marriage or long term relationship ends can be overwhelming. If you simply do not know where to begin it's advisable to consult an auto insurance specialist to assist you through the process from selecting a new plan of coverage to finding the lowest rates for the insurance.