As the saying goes, "Marriage is about love, and divorce is
about money." Dividing property accumulated over the years
can be as emotional as it can be difficult and fraught with
legal complications. Deciding who gets which car may be an
obvious decision in a divorce, but careful consideration of
how to take possession of an affordable auto insurance
policy may be a little more difficult. While auto insurance
regulations and collision coverage requirements vary by
state, there are enough similarities to offer this quick
checklist to make sure that you're covered.
Communicate
Be sure to inform your insurance agent when you and your
spouse first separate. Depending on your state's auto
insurance laws, you may need to purchase a separate policy
if you and your spouse are not living in the same home or
are legally divorced. Removing your ex from your auto
insurance policy now will clear you of any possible future
liability in the event of his or her involvement in an auto
accident.
Shop around
Just because you've always had an insurance policy with a
particular company while you were married doesn't
necessarily mean their rates are going to be the best for
you now that you are single. Call or get an online auto
insurance quote, do your research and obtain cost
comparisons to make the best financial decision for you.
How much do you need?
Review your auto insurance policy and make sure that it
provides you with adequate coverage in your current
situation. Your newly single self may need to add some
features not covered in your previous policy, such as
towing, car rental reimbursement and emergency roadside
assistance. If your car is an older model and paid for in
full, you might think about raising the deductible and
eliminating collision and comprehensive coverage. Another
way to save money is if your circumstances have
necessitated you move back home with your parents; they
might be able to add you to their auto policy.
Who gets the car (and the car insurance)?
Typically, whoever gets possession of the car is
responsible for paying the automobile insurance premiums.
Be sure that your new policy clearly states who is
responsible for paying the auto insurance premiums and that
your insurer knows your current address, which person is
driving which car, and if there will be significant changes
in the type or amount of driving that you will now be doing.
Sometimes, if there are children involved, and the
custodial parent incurs additional transportation costs
such as driving more miles per year or needing to purchase
a newer or larger car to take care of the kids' needs, then
the non-custodial parent may be ordered to pay all or part
of the custodial parent's auto insurance policy. Also, if
it is necessary for one of you to purchase a new vehicle, a
gap car insurance policy or a new auto insurance policy
will be required before the car can be registered.
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Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.
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