Home Car insurance Coverage Untangling your insurance during a separation or divorce Untangling your insurance during a separation or divorce Written by: Emmet Pierce | | Reviewed by: Michelle Megna Michelle Megna Michelle, the former editorial director, insurance, at QuinStreet, is a writer, editor and expert on car insurance and personal finance. Prior to joining QuinStreet, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News. | Updated on July 14, 2015 Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. Few things in life are more traumatic than a divorce or separation. That’s why couples often remain together long after the joy has left their relationships. As you untangle your finances to go your separate ways, you likely need to sever insurance ties. Below are tips for dealing with various types of insurance coverage after a breakup. Auto insurance coverage during a divorce Breaking up and obtaining separate car insurance policies may mean that you will lose discounts offered for households with multiple policies. Peter Moraga, a spokesperson for the Insurance Information Network of California, says insurance companies generally charge less for people who are married or in a domestic partnership. “As far as insurers are concerned, there is little difference between married couples and domestic partners,” he explains. “If a company has given you a 5 to 10 percent discount, that would be something you lose” through separation. Marriage is not the major factor in determining car insurance quotes, however. Whether you are single or in a relationship, the three biggest factors will be your driving record, the number of years you have been driving and the number of miles you drive each year. Separating couples have many insurance options. “A couple can elect to insure cars under one policy, even if they are divorced,” says Moraga. “It depends on whether it is an amicable split.” Allstate spokesperson Stephanie Sheppard says the way you divide up your vehicles after a divorce or separation will be important in determining how to proceed with insurance coverage. Allstate typically requires that cars are insured in the names of their registered owners. Remember to shop around for the best car insurance rates. If you move to another residence, you may get lucky and end up in a community where insurance is less expensive. “Let’s say you move,” says Loretta Worters, vice president of communications for the Insurance Information Institute. “You are getting out of Dodge. You car rates may go down if you move to a location that is less costly” because of lower accident or vehicle-theft rates. Securing home insurance after a separation If you or your partner moves away, your home insurance policy will need to reflect that. Sheppard explains that home insurance policies typically require notification if any part of the information on your policy is no longer correct. Once a divorce is final, the policy may need to be rewritten to remove a partner who no longer has an insurable interest in the dwelling. If you or your ex-spouse moves to a rental property following the divorce or separation, it’s probably a good idea to buy renter’s insurance to protect that person’s personal items and provide them with liability coverage. Life insurance that makes sense Couples may decide not to cut all financial ties. Sheppard says there may be good reasons to keep your ex-spouse as a beneficiary on your life insurance policy. For example, if you have children together, you may want to make sure that your life insurance remains current so they are provided for if you die. However, if you forget to update your life insurance policy when you get remarried or find a new partner, your benefits will go to your ex-spouse if you die. If the life insurance policy you share with your ex-spouse has cash value, “it is important to think about it in a settlement agreement,” says Michael Weintraub, chairman of the Life and Health Insurance Foundation for Education, a nonprofit organization formed to help consumers make insurance decisions.”If the value is significant, it becomes negotiable during the divorce. One party generally will keep control of the policy” and the other will be compensated. When sorting through life insurance issues during a separation, “it is a good idea not to deal with this alone,” adds Weintraub. “It is the best time in the world to get advice.” Group health insurance after your separation Divorce or separation can be scary if you depend on your partner for health insurance. If separating couples each have access to group health plans through work, they normally revert to their own employers’ plans, says Worters. If you lose your spouse’s group health insurance coverage through divorce or separation, you may be able to get COBRA insurance coverage. Divorce is a qualifying event for such plans. If you are taken off a spouse’s insurance, check your eligibility to buy a COBRA plan. It’s important to know your COBRA rights. Children may be covered by your health policy, your ex-spouse’s policy or both. Worters says it will depend on the terms laid out in the divorce settlement. QuickTake Minimum car insurance requirements by state Can I insure a car that isn't in my name? Non-owner car insurance: How to get car insurance if you don't own a car What is liability auto insurance? 15 things you didn't know your car and home insurance policies cover How auto theft investigators work - and how to hire your own What is uninsured and underinsured motorist coverage? Car warranties versus auto insurance How Does Gap Insurance Work and Do You Need it? Do you need full coverage on a financed car Do you need the VIN number for the insurance quote? Veterans and military guide to insurance 5 questions to ask your car insurance agent The secret life of your car's VIN "Stacking" your UM/UIM auto insurance coverage 10 things that aren’t illegal but should be SR-22 insurance: What is it and how does it work? Auto insurance: How to make sure you’re not underinsured Full coverage auto insurance: What it costs to get covered Will my car insurance still cover my vehicle if I had it towed out of the road after hitting a deer? I have a witness to the event. Double-car insurance dilemmas How to cut your car insurance bill in half 12 things you don't know about car insurance that could cost you My wife was half asleep when she went out to scrape snow and ice off her car. She used a snow shovel, not realizing she picked up the one with the sharp metal blade at the end, so she scratched the car all over. Will her car insurance cover the damage? My car was rear-ended and totaled but it was paid out by my insurance company and I am left with a balance on my car. Can I make a claim with the other drivers insurance company to pay the balance? As I was backing out of the driveway I hit a parked car that was parked beside the curb in the street causing what looked like mild damage. My vehicle had no damage. Will I have to pay a deductible? Don't let other people drive your car Taking the slow lane by storm: Insurance for low-speed vehicles Car insurance for blind drivers (you heard that right) Would I lie to you about car insurance? Only if it pays off Insuring your tricked-out, souped-up car See more > In case you missed it Best Car Insurance Companies of 2023 Car insurance rates by state: The most expensive and cheapest states for car ins... Full coverage auto insurance: What it costs to get covered A complete guide to car insurance for seniors A complete guide to adding a teenager to your car insurance policy What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Buying and insuring a used car: Most and least expensive models to insure in 202... The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to Car Insurance Discounts Proper insurance coverage for college-bound children How to read (and actually understand!) your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 Get instant quotes now ! Please enter valid zip Get quote