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Car Insurance After Divorce or Separation

When a couple is going through a divorce there are so many things that need to be handled. Often the vehicle insurance gets overlooked.

Can I Stay On My Husbands Car Insurance After Divorce?

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Not usually.

The laws for divorce include what happens with insurance and that includes car insurance. However, the laws can be different in each province.

Often a couple has joint car insurance. This will change during a divorce.

Insurance Companies

The insurance companies require applicants to fill out a questionnaire when applying for vehicle insurance. One of these questions is whether the applicant is single or married.

Insurance company rules are that you must notify them whenever there is a change in the information you provided. Therefore you will need to notify them of your divorce. This is most likely going to change the insurance.

When a couple gets divorced the address usually changes for at least one of them. This means the vehicle may now be stored at a new address.

If your husband has been the primary insured on the vehicle and is taking the vehicle you will not likely be allowed to stay on the insurance.

There can be exceptions to staying on your husband’s insurance after divorce. If you both have agreed to remain living in the same house and an agreement has been made to keep the vehicle insurance the same then yes it may be possible. However, to be safe you should still notify the insurance company about the change in marital status.

Does Being Divorced Affect Your Car Insurance?

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Yes, it does.

It can affect the insurance in a number of different ways depending on the circumstances.

When Children Are Involved

Some couples have put their children who have a G1 licence on their policy. As a result of the divorce, this young person is going to live 50% of the time with each parent.

If the young person is going to be driving vehicles owned by each parent they will have to be added to the individual vehicle insurance policies that the divorced couple has arranged for since the divorce.

If the youngster has their own car and this is going to be added to one of the parent’s policies then it should be to the parent the child stays with the most. This is something that needs to be discussed in detail with your insurance company.

Insurance For The Divorced Couple

Both parties are going to need new insurance policies. It is important to contact the insurance company immediately upon the divorce being finalized.

How Is Car Insurance Split In A Divorce?

Each party obtains a new insurance policy.

Normally once the couple is divorced new insurance policies will have to be obtained for each party. If you are staying with the original insurance company then each of you will be able to retain your discounts if applicable. You won’t be able to keep any discounts that were applicable as a married couple.

Who Pays For Car Insurance In A Divorce?

During a divorce, there is a requirement for the splitting of assets. If the car insurance has been paid up for the year then it may be negotiated that any of the unused balance of paid premiums is split between the two. It all depends on what agreement has been made. The insurance company will require that each of you get new insurance policies. The insurance provider may be willing to insure each of you independently if you wish to stay with the same company. However, you will each be responsible for paying your own premiums. Unless there has been some settlement in the divorce agreement that one of the parties will pay for the other vehicle insurance. If this is the case the Insurance provider needs to be provided with the contact information of the party that is paying the insurance.

Is It Better To Be Single Or Divorced For Car Insurance?

Car after Divorce

In some cases.

There are some advantages to being able to obtain car insurance as a married couple. Each insurance company will decide on what metrics they are going to use to reach the cost of premiums for each client. Some insurance companies will put more emphasis on a couple’s marital status.

Some insurance providers feel that married couples are more responsible as they tend to be older. Then some think that the married couple may be more cautious driving if they have children. These are theories but in most cases, the insurance application will ask the marital status.

Something else to be considered is that married couples often have home insurance and there is an option to bundle insurance, which gives an overall better rate on premiums.

Another advantage is if there are two vehicles being insured that would allow for a multi-vehicle discount

There are times when it may not be a good idea for a married couple to have a combined vehicle policy. This would be the case if one of the drivers was considered to be high-risk for vehicle insurance.

Keeping The Costs Down

Chances are the premiums are not going to stay the same when the new insurance policies are issued. This is because some of the joint discounts may no longer be in effect. Each driver will be looked at individually. They will still be able to apply for the discounts that are being offered by their new insurance companies. Or, if they are staying with the same company they will not lose their independent discounts.

Another way to keep the cost down is to shop around for insurance. Often married couples become complacent about the vehicle insurance that they may have had for several years. They may assume that they are getting the best rates when there may be other insurance companies ready to offer them better premiums. This is the one positive to having to shop for vehicle insurance for the divorced couple. They will now be motivated to do some comparison shopping.

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