How to handle car insurance after divorce or separation

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If you’re going through a divorce or separation, you’ll need to update your car insurance as soon as possible. Once you and your spouse live at different addresses or drive separately owned vehicles, you can no longer share a joint policy. Each of you must carry your own coverage to stay legally insured and avoid gaps in protection.

Divorce can also change what you pay. Married couples often get lower rates, so your premium may increase slightly when you switch to a single policy. But you can usually offset that by comparing quotes, adjusting coverage, or bundling home or renters insurance with your car policy.

Will my car insurance rates change after a divorce?

Your rates can change after a divorce — but not always drastically. Insurers often offer lower rates to married drivers because they tend to file fewer claims. After a divorce, your status switches to single, and you may lose small “married driver” discounts.

However, your rate depends more on your personal profile than your relationship status. Factors such as your ZIP code, driving record, vehicle type, and credit score usually have a greater effect. If you move after the divorce, that address change alone could shift your premium.

To keep costs down, review your coverage limits and deductibles and shop around. Getting multiple quotes can help you find insurers with better single-driver discounts or pay-per-mile options that better fit your new lifestyle.

Can I stay on a joint policy during separation?

You can remain on a joint policy during separation only if you still share a home and vehicles. Most insurers require all listed drivers to live at the same address. Once one of you moves out or transfers vehicle ownership, you’ll both need individual policies.

Staying on a joint policy too long can cause problems. If your ex gets into an accident, your shared policy could be affected — even if you no longer drive the same car. Likewise, if one person misses a payment, both parties’ coverage could lapse.

To avoid those risks, call your insurer early in the separation process. They can guide you through setting up two separate policies and ensure both of you remain continuously insured.

How to split or set up individual auto insurance policies

Here’s how to handle your car insurance when separating or divorcing:

• Notify your insurer. Let them know about the divorce and ask what documentation is needed to separate the policy.
• Decide who keeps each car. The policyholder should match the registered vehicle owner. Each car must be covered by the person who drives it most.
• Update addresses and registration. Insurance and DMV records should reflect your new address once you move out.
• Get fresh quotes. Shop around for new rates. You may qualify for different discounts, like low mileage or safe driver savings.
• Confirm continuous coverage. Make sure your new policy starts before your joint one ends so there’s no gap in protection.

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Who should be listed on the new policy

Each driver should be listed only on the policy for the vehicles they regularly drive. If you have teenage drivers, they should remain on the policy of the parent whose home they primarily live in or where their vehicle is garaged.

If your teen uses cars at both households, notify both insurers. This ensures the child is covered no matter whose car they’re driving. Omitting a regular driver can lead to denied claims later.

How to handle payments and refunds

When you separate your policy, you might receive a prorated refund or credit for unused premiums. Confirm where that refund goes — and make sure billing addresses and payment methods are updated.

If you and your ex are splitting the cost temporarily, agree in writing on who pays which portion and how payments are handled. You’ll also want to remove any shared bank or credit card information tied to automatic payments.

Bottom line

Divorce and separation can be stressful, but updating your car insurance doesn’t have to be. The key is acting early — notify your insurer, set up separate coverage, and verify all your policy details. By staying proactive, you can avoid lapses, protect your finances, and start your next chapter with peace of mind.