Tips For Dealing With Auto Insurance During Divorce

When filing for divorce, most everyone thinks about splitting up possessions and bank accounts. Unfortunately, many overlook one of the most significant financial investments and issues – auto insurance. You may think that you should take your ex off your insurance immediately, but there are many factors that you need to consider before making any changes. Here's a look at some of the things you need to keep in mind. 

Protecting the Vehicles in Your Name

Although the insurance requirements vary from state to state, keeping your cars insured and protected is a good financial decision. Before you take your ex off your policy, you should consider whether or not your name is on the car that he or she is driving. If the car is in both of your names, remember that any accident your ex is in without insurance may leave both of you liable for the damages. This could have serious legal repercussions for you, especially in court.

Dealing with Insurance Without Shared Vehicles

Your legal risks are lower if you remove your ex from the policy when he or she isn't driving a car with your name on the title. Despite the fact that you may want to get your ex's name off your policy right away, you should talk with an attorney first. In some states, any accident that occurs before your divorce is final is automatically a liability for both of you as part of the marital estate. If that is the case, you could be on the hook to help pay for any incurred damages.

Offering Insurance in Lieu of Support

Before you make any decisions about keeping your ex on your policy or not, consider what kind of support you might be expected to pay. If there are children in the marriage, you might be expected to pay child support. If your spouse wasn't working or you were the primary income earner, you may be expected to pay spousal support.

It might be cheaper for you in the long run if you offer to keep his or her cars insured on your policy until the divorce is final instead of paying an estimated amount for spousal support. This is typically acceptable for most insurance companies until your addresses are officially different and the divorce is final. Ask an auto insurance company about whether or not you could do something like this.

Dealing with a divorce is hard enough in most cases, but when it comes to sorting out your insurance needs, things can be even more difficult. Talk with your auto insurance company and your divorce attorney about your options so that you can be sure your coverage is protected.