Getting a divorce is a tough time in any person’s life. With the breaking off with an emotional relationship, there are also legal, financial, and insurance matters to be sorted out … including your car insurance.
Depending on the insurance company, your marital status will have an effect on our car insurance rate. A married person may pay less for an insurance policy as compared to an unmarried person. This is because married people are drivers safer and are less likely to get in an accident (according to statistics).
How Divorce Makes Impacts On Your Car Insurance Policy
The initial impact will be on the cost of premium rise because of the divorce. A single person pays around 10% more than a married person on their insurance coverage.
Divorce can change your car insurance rate a few ways:
- Your residence plays a big role in determining your insurance rate. Some neighborhoods are safer than others (read: car theft, accident rate, etc). After a divorce, both parties will need to figure out their living arrangements and that may involve moving.
- Depending on how safe your ex-spouse drives, you may see an increase or decrease in your insurance fees.
- You may lose the multi-car and/or bundling discount you got for insuring multiple vehicles and having multiple insurance policies with one company.
- When splitting your finances and bank accounts, insurance companies might look at your individual credit score and determine your insurance from that.
Who Pays For Insurance During Divorce
There are a couple of situations through which the insurance premiums are paid during the divorce proceedings. Who pays for the insurance policy depends on how you were handling it during your marriage
- Most married couples use their joint bank account to pay for their car insurance policy. During divorce proceedings, the insurance cost will all be deducted from the same joint account.
- If one spouse is earning more and he/she solely pays for the insurance policy during the marriage, the divorce court might demand the other spouse to pay their share of insurance.
Steps To Take After Divorce
- Notify your insurance company about your divorce
- Remove your ex-spouse from your existing policy
- If you have been removed from the insurance policy, look for new insurance policy
- Add your teen kids to your new car insurance policy. In fact, both parents might have to add the teen to their respective policies.
How To Get Cheap Insurance After Divorce
- Keep looking around for discounts, you might get a discount on purchasing multiple insurance policies like house and car insurance.
- Shop around. Get insurance quotes from at least 3 insurance companies and choose the best one for your new situation.
- If you have a clean driving record you might get a further discount, because you will be less likely to be involved in an accident in the future.
- Look for an insurance company that offers incentives and rewards for good driving.
Best Cheap Car Insurance After Divorce
Here are five cheapest insurance policies that a divorced person can get:
USAA provides one of the most affordable insurance policies for your car. USAA offers zero initial cost and provides flexible payment plans. They offer liability coverage, comprehensive coverage, and collision coverage to protect you from any unfortunate incident. You can get a free car insurance quote online or through using their mobile app.
State Farm is the largest personal car insurance company in the United States. They provide all types of insurance for your personal car.
State Farm offers some attractive discounts and rewards programs for example discounts for having multiple cars and rewards for driving safe. State Farm has its amazing mobile app that monitors your driving performance.
Geico is a leading insurance company in the United States. Geico offers low prices and discounted rates for their car insurance converge plans.
Geico app is equipped with the latest features to assist you along your journey with them. The app keeps track of your policy and they even assign you a personal assistant which will answer your questions related to the policy.
The Progressive insurance company has its operation all over 50 states. They charge zero initial cost and provide flexible payment plans.
Progressive offers liability coverage, comprehensive coverage, and collision coverage to protect you from any unfortunate incident. You can get a free car insurance quote online or through using their mobile app.
Allstate is a great insurance company if you are looking to save some extra dollars because they offer incentives and reward programs. Allstate’s Drivewise is one such program that rewards drivers for driving safely.
In a stressful situation like a divorce, it’s important to step back and think carefully about how you’re going to handle the changes in your personal life. Making insurance decisions will help ensure that you are financially protected.