While you probably already thought about your bank accounts and household possessions when you decided to file for divorce, one of the things you may not have considered yet is how you're going to handle your cars and their insurance. You might think that you should just call and have your ex removed from your auto insurance immediately when you move out, but there are a few things that you should think about before you take any action. Here's a look at what you need to know.
Is The Car In Your Name?
If the car your ex is driving is still in your name, it's not in your best interest to remove him or her from the auto insurance policy yet. In fact, if you are in a state that requires auto insurance, you might actually find yourself in legal trouble if you remove your ex and that car from the policy. In addition, if you do cancel the coverage and your ex is in an accident, you might actually find yourself financially liable for the damages.
What If The Car Isn't In Your Name?
If your name isn't on the car your ex is driving, you won't likely face as much legal concern. However, it's still important that you talk to your attorney first. Some states will still consider you partially liable for any accident your ex is involved in until your divorce is final, so leaving him or her without insurance might still end up costing you.
Can You Pay For Insurance Instead Of Spousal Support?
If you have reason to believe that your ex is going to seek spousal support in court, consider extending an offer to maintain insurance coverage instead. This may actually save you money over time, because the cost of the monthly auto insurance may be less than what the court would have ordered for spousal support. Most insurance companies will permit this at least until the vehicle is registered at a different address. If you maintain the registration, you can typically include your ex on the policy for however long is necessary or until agreed upon in your divorce settlement.
As you can see, there's more to the auto insurance consideration than you might have thought during your divorce. With the information here, you'll be better prepared to deal with your insurance coverage without increasing your risk of potential problems due to a lack of coverage. For more details about your coverage options, talk with your auto insurance agent today.
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