Does Your Divorce Affect Your Vehicle Insurance?

Posted by: Gerald A. Maggio, Esq.

divorce lawyers in Orange County; The Maggio Law FirmAny couple that files for their divorce has to also deal with the proper distribution of their marital assets. But, there is something that many people do not consider. They often overlook the impact of the divorce on their car insurance. Divorce can affect various aspects of the couples’ car insurance including changes in rates to buy a new insurance policy.

Relationship between premium and marital status

The premium for your car insurance policy is the amount that should be paid by you to insure your car against damages including caused due to accidents. However, it is important to note that the premium rate is not same for everybody. In other words, there could be different rates for different people, state to state and even city to city. Insurers will take into account various factors to determine the premiums for the policyholders. But, it is true that your marital status may affect the rate of premiums directly as well as indirectly.

Single versus married

As per a study made by the Insurance Quotes, married people usually need to pay lower premiums as compared to their single counterparts. For instance, a married man who is thirty-five years old may have to pay as much as 3 percent less in some States for their auto insurance as compared to a single man, who is of the same age. On the other hand, a 35-year-old single woman has to pay 2.75 percent more than her married counterpart of the same age. The reason for this is it is statistically proved that married people’s involvement in auto accidents are fewer than in married people.

Indirect effects of divorce on car insurance

The car insurance premiums can be indirectly affected by a divorce too.  For instance, in many states, men have to pay higher rates of premiums as compared to women. So when a woman is single once again after her divorce, her premium may lower after the divorce comes through.

The place where you start living after your divorce got finalized may also alter your premium.  Premium rates for car insurance are more for all those people who live in urban areas as compared to the suburbs. Moreover, premium rates may not be same for two different suburbs.

There could be also an increase in premium rates since the multi-driver discounts or discounts for purchasing more than one policies will no longer be available to you after your divorce. Such policies include both homeowners’ policies and car insurance policies.

Getting divorced in California can be complicated.  Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.  

 
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