Should You Get a New Auto Insurance Plan After You've Divorced?

When major life changes happen, it is important to look at numerous factors and to consider which updates to make. For many people, this means taking a closer look at your auto insurance.

Generally speaking, car insurance protects specific assets and specific people from losses. When you are divorcing, you may no longer want to have coverage for that person and his or her assets. This generally warrants making changes to your policy.

What to Keep In Mind When Divorcing

The divorcing parties and their counsel determine who is responsible for assets as well as debts. Your auto insurance plan is likely a key contract that will need careful consideration. Here are some things to keep in mind.

• The judge may order that auto insurance remains in place for a set amount of time during and after the divorce. He or she will determine who will need to pay the premium during that period.
• You need to update your policy if the owner or the user of the vehicle changes after a divorce. You may want to consider a new policy that is completely separate from your former spouse’s.
• Divorce can see the change in ownership of numerous assets such as your home. This also means your bundled insurance may change. It is an important decision to talk to your car insurance provider about these changes. They can help you understand your expectations for pricing going forward.

Auto insurance is a big factor in the process of divorcing. That's because it changes the liability associated with the vehicles. It is important to work alongside your car insurance agent as well as your counsel to ensure you stay protected. Don’t simply cancel your policy. Find out when it is ideal for you to do so to ensure there is no liability risk to you in the process. This can play a big role in your financial stability as you work through the divorce.