Don’t Forget to Update Your Car Insurance Policy When Your Divorce is Finalized!

Hi there and welcome back. We’ve been talking about your different types of insurance, and how they can be impacted by your divorce. So far we’ve covered pretty much all of them, including life, homeowners’, and medical insurance, and now we’d like to wrap it up by taking a look at your car insurance.

A picture of a BMW. Dealing with car insurance after a divorce isn't fun but it's very important!

Yes, we know, this is an overwhelming time in life and you already have a ton of other things to do. But not taking care of these very important issues can lead to a lot of financial complications and problems down the road (which is the last thing you need while you’re trying to get back on your feet after a divorce!) So, moving forward…

After the divorce you can’t be on a car insurance policy with your ex.

Most married couples in Michigan own more than one car. In these cases, usually both spouses are named on the auto insurance policy, which is something you’ll need to take care of when you get divorced. But having your name removed from a car insurance policy in Michigan can be a little more complex than you may expect.

Car insurance companies require that any time one person is removed from a policy, they must have the permission of both parties. This actually a built-in safety, to make sure that a person can’t be removed from a policy without their knowledge. But it means that a divorcing couple has to come to an agreement together about their car insurance, before they make any drastic changes to that policy.

So how do you take yourself off the policy with your ex?

One of the first steps for many couples is getting separate living addresses. Incidentally, this is also the first step towards separating liability. For a couple who are still legally married and living at the same address, liability might be shared. So as soon as you move out, it makes sense to consider having separate addresses listed with your insurance company on separate insurance policies.

The majority of insurance companies require that the person insuring the vehicle is listed on the title. In this case, a vehicle co-owner would need to be listed as “additional insured” if they weren’t living at the same address as the policyholder. Once the divorce is final, either you or your ex will need to get a new policy. You can stay with the same company, or move to a new insurance provider, it’s totally up to you. If your homeowner’s and auto insurance policies are bundled, it makes sense that whoever keeps the home also keeps the car insurance policy.

Keep it simple, because you already have a lot on your plate!

To keep things simple during your divorce, we recommend each having your own car if possible, where you’re each listed as the legal owner on the title of your own vehicle. That way, when your divorce is final you can each get your own insurance policy for your vehicle, and avoid any issues down the road.

We hope this basic breakdown has been helpful for you. Remember, divorce is a busy and stressful time, and there is a lot to remember. If you have questions, or would like advice on how to handle any aspect of your divorce including child custody, alimony or asset division, the experienced family law attorneys at The Kronzek Firm are always here to help.Call us at 517 866 1000.