Getting A Divorce: Here Is What To Do About Your Car Insurance Policy

When you go through a dissolution of marriage, there are many different things you need to take care of. One of them is deciding what to do about a car insurance policy that includes both of your names. Here are some tip for handling the car insurance policy during a divorce.

You Need Permission to Remove a Spouse's Name

It is important to know that you can't just remove a mutual policyholder from the policy without their permission. This means you and your spouse both need to decide who will retain ownership of your vehicle and who should keep the insurance policy. If you have just one vehicle, this might be a bigger decision. However, if you each have your own vehicle, it will be a little easier. One spouse keeps this insurance policy, and the other spouse agrees to remove their name and get their own policy with the same company or a different one.

Keep Vehicle Titles Separate

One of the first things you need to do once you decide who will keep which car is get your own title in your name and remove your name from the other title. While this may seem like an obvious suggestion, it is something many spouses forget to do. Many insurance companies require only your name to be on the title before you get car insurance. This means if you have a title with both your and your spouse's name on it, it can be hard getting insurance in just your name. It is always a good idea to visit your local Department of Motor Vehicles to have the proper title adjustments made.

Don't Cancel Without a New Policy

It is also important that you not cancel a car insurance policy during a divorce without first getting a new policy. This could leave you without car insurance while shopping for a new policy, and you never know what could happen during that time. Say for example, as soon as you file, you want your name removed from an old policy right away. Your name is removed so you are no longer covered, but you have difficulty deciding on a new policy. In that week when you aren't insured, your vehicle is stolen, and you have no protection from it. You have just lost your vehicle and have no way to replace it since you weren't technically insured during that time. The best thing to do is get a new policy and be sure it is active prior to canceling the previous one.

If you are going through a divorce and you fail to separate policies, titles and vehicles, you could be responsible for an accident that you spouse was involved in. It goes on your record as well, and this could hurt you financially moving forward. Speak to a divorce attorney such as Blumenauer Hackworth if you have issues with this shared policy or other insurance policies you have with your spouse.