Handling your car insurance during divorce

Married couples in New Jersey usually share their car insurance policy with their spouse. Being a multi-policy holder and sharing the same address impacts their car insurance rates. Individuals must contact their insurer to inform them of the divorce and new address during a divorce. Individuals can expect this to change their rates.

Contacting the insurer

Every car insurance policy has its own terms and these may vary. In most cases, individuals must inform their insurer within 30 days of a finalized divorce. Most individuals move and establish a new address during the separation process. The address of a car is a major factor in determining a policy and rate, and some insurance companies require notification within 30 days of a move. It is often best to consult the insurer when filing a change of address.

The insurer can deny claims without being told about a move or divorce. It’s important to stay within the terms of the policy to avoid issues after an accident.

Change in rates

Many of the factors that determine insurance rates change during separation and divorce. Married couples in New Jersey often see a small discount on their policy. They also receive multi-car and multi-policy discounts if their insurer covers their home. Without these discounts, an individual’s car insurance will likely cost more after the divorce.

An address change will also change the rate. This may lower or raise it depending on the change. People in densely populated cities often pay higher rates than drivers in the rural countryside.

There’s also the possibility of a rate lowering. If the ex-spouse had a history of car accidents or tickets, this impacted the car insurance policy the couple received. The divorce will remove the surcharges caused by the ex-spouse’s accident history.

Most people’s car insurance policy rates will go up after a divorce. One way to make this a little easier is to shop for the best rates available for the new living situation post-divorce. With a new address and single status, a new company may offer a better policy.