Going through a divorce will dramatically change your life. Surprisingly, it might also change how much you pay each month in auto insurance.
A recent story on Fox Business serves as a reminder to divorcing couples: They need to inform their auto insurance providers when their marriage officially comes to an end. Laws vary by state, but divorcing couples must generally inform their auto insurance providers within 30 days after their divorces are final.
This may seem like one more nuisance for divorcing couples. However, there is a legitimate business reason why insurance companies want to know about divorce: Many insurers provide discounts to married couples that range from 5 percent to 15 percent.
Accordingly, couples will probably have to pay more to insure their cars after they go through a divorce.
Divorcing couples might also see discounts for insuring multiple cars and for taking out multiple policies with the same company disappear as well, once the divorce is finalized, Fox Business reports.
As the story says, most auto insurance policies also contain a clause stating that policyholders must notify insurers of any changes that they make in living arrangements and addresses. This is because these factors can change the rates that couples are charged for their auto insurance.
More importantly, if you fail to notify an insurer of an address change — i.e., if you move to a new apartment, condo or home after the divorce — it may result in your policy being canceled. So any claims submitted after the unreported divorce/address change could potentially be denied.
Going through a divorce is never an easy process. It can be easy for divorcing couples to forget some of the more minor decisions that will have to be made as they end their marriages. Couples, though, should not forget to update their insurance policies. Often times, individuals fall into debt after a divorce. Don’t be a part of that statistic and speak to qualified debt relief attorneys in Illinois.