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Changing Your Vehicle Insurance After Divorce

Posted on in Divorce Finances

Changing Your Vehicle Insurance After DivorceSeparating your auto insurance from your spouse's insurance is one of the actions you must take after finishing your divorce. There is no urgency to do it during your divorce, and finalizing who owns which vehicle will help with the process. However, getting separate insurance policies requires more than a simple phone call. You and your former spouse must take multiple measures to ensure you are no longer tied to each other through your insurance. It may also be time for both of you to shop around for different policies.

Joint Decision

You cannot remove your spouse from your combined auto insurance policy without his or her permission. Having auto insurance is a legal requirement for drivers. Ending your spouse’s insurance without permission may cause him or her to unknowingly break the law by driving. If your spouse is involved in a crash while uninsured, he or she may bear a greater financial burden for property damage and personal injury expenses.

Finding a New Policy

You should establish a new auto insurance policy before requesting to remove yourself from your marriage auto insurance policy. It is simplest to create the new policy with your existing insurance agent or provider. However, this is also an opportunity to research whether there is a more cost-effective policy. Your auto insurance payments may change after divorce, depending on:

  • Your individual safe driving record;
  • Which vehicle you keep after the divorce;
  • Whether you are bundling home and auto insurance;
  • Whether your marriage policy had a multiple-vehicle discount; and
  • Whether you have a teenage driver on your policy.

If your former spouse is the one being removed from the policy, you should still consider how being on the policy as an individual may change your insurance cost.

Address and Title

There are multiple ways that auto insurance providers may want you to separate yourselves after the divorce. First, you should both inform them of your separate home addresses. This is more important for the spouse who leaves the marital home. You also must make sure that the title of the vehicle you keep after the divorce reflects that you are the sole owner. You may have listed both of your names in the title when purchasing the vehicle because vehicles are often marital investments. If your spouse is still listed in the title, the insurance company may need to include him or her as an additional insured person for the vehicle.

Insurance Effect 

The division of marital property and allocation of parental responsibilities can both affect the cost of your auto insurance after your divorce. A Kane County divorce attorney at Goostree Law Group will account for financial factors such as auto insurance when helping you negotiate your divorce. To schedule a free consultation, call 630-584-4800.


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