Your relationship status, car insurance, and homeowners insurance all have an interesting relationship of their own. Unfortunately, even the most amicable divorce isn’t without its issues. You’re going to have a lot on your plate but it’s important to navigate your coverage during these difficult times. Everything from how much you pay, who is responsible for paying, and how you are protected is important to understand. Failing to do so could result in costly issues further complicating an already uncomfortable personal matter. In addition to home insurance, let’s explore marital statuses and car insurance for Texans.
Does Relationship Status Affect Car Insurance?
Yes, your relationship status and car insurance coverage are connected. This affects your coverage, premiums, responsibilities, and much more. The biggest thing is that you’re going to have to keep your insurance provider up to date with your relationship status. Here’s why:
- If you’re married, for most situations, you’ll need to be on the same auto policy in Texas. This is generally a good thing, however, as married couples pay less than singles on average. You’ll also enjoy additional savings through discounts such as multi-policy.
- Separated or divorced couples have more considerations. For starters, your rates can fluctuate. Another is that your coverage will depend upon where you live. If you’re living together, you can still use the same car insurance policy. If you do not, you’ll need separate coverages.
Lying About Marital Status on Car Insurance
For starters, if you lie on an insurance form in any way, you’re setting yourself up for some unfortunate legal woes. Texas laws for insurance and fraud provide serious jail time to offenders.
Charges involving fraud from your insurance application can put you behind bars for as little as 180 days to as much as 2 years.
There are obviously going to be a ton of legal fees and other expenses involved with such issues, but that isn’t where your financial woes end. In some cases, it’s where they are just beginning.
If you lie about your marital status on your car insurance, or any form of insurance for that matter, you might not be covered in the event of a loss. For auto insurance policies this is especially critical, as marital status is a major common factor looked at by carriers.
There are many factors that can affect your car insurance premium and for the most part, they are all commonly looked at by carriers. But they aren’t viewed in the same way.
What this means is that you’re going to find that every carrier is going to look at marital status as a factor in what they charge you for your monthly premium. However, they will all view this and the other factors in a different manner.
This is exactly why you’ll find the same coverage for your vehicle at vastly different prices. It’s also why it’s important to shop around when enrolling in coverage.
Overall, the algorithms used by each brand may be different, but they’re all looking at your marital status. They’re also all going to require a truthful form when you enroll in your coverage. Otherwise, there are many negative repercussions that you may face.
Can You Remove Spouse From Car Insurance Before Divorce?
Yes, if you wish to remove your spouse from your car insurance policy, you may do so. However, you’re going to have to have their permission to do so, if they are also a named insured on your policy. In other words, if you both have coverage, permission is necessary to remove them. You cannot remove a policyholder without their consent.
Can I Stay On My Husband’s Car Insurance After Divorce?
Yes, you can stay on your husband or wife’s car insurance after getting a divorce in Texas. The key consideration here is where you live. Specifically, where your vehicle will be located overnight.
Couples that live together after separating or divorcing can stay on their respective auto insurance policies. You’ll still need to notify your provider that you are no longer married, but you don’t have to get separate policies in many cases.
Car Insurance During Separation
Separated couples have many challenges to overcome and car insurance is yet another. Again, if you are separated from your partner yet still living in the same home together, doing nothing is often the best option. You don’t have to change anything outside of notifying your insurer and it can make things easier.
But this is a best-case, easy-to-follow example. The real world doesn’t always line up in such a way, and there is one major consideration everyone should be aware of: what happens if you own a vehicle together?
Should this be the case, you’ll need to first decide who will own the vehicle after the separation. After this is decided, the other partner will need to be removed from your insurance, along with the vehicle’s title and registration.
Car insurance for separated couples is an important topic and these steps are critical. No one that isn’t an owner of the car should remain on the policy, title, or anything to avoid also being financially responsible for any losses that might occur.
Can You Split Car Insurance Payments After Divorce?
The two things that come into play here are the previously mentioned factor of where you live, and whatever terms you and your ex-partner agree upon for your divorce statement. This is more of an issue between two parties than it is between the policyholder and the insurance carrier.
With that being said, whoever is listed as a policyholder on the auto insurance policy will ultimately be responsible for paying the premium. Therefore, it can be tricky when dealing with car insurance after divorce if you are relying on your ex to come through financially.
Overall, each situation is different and your divorce lawyer can help guide you through the ins and outs of such agreements. But remember, failing to pay your auto insurance premiums can lead to serious consequences, so you’ll want to make sure everyone is on the same page.
Auto insurance companies can drop you if you fail to maintain your premium. This can lead to unfortunate situations where you’ll be liable for any losses while dealing with a lapse in coverage including property damage, bodily injury, and legal expenses.
Car Insurance for Child of Divorced Parents
Car insurance for divorced parents comes with its fair share of difficulties. Teenagers require coverage more than anyone as they are statistically more likely to get into an automobile accident than any other demographic.
If you’re going through a divorce, you’re going to need to stay prepared, but this sentiment is even more essential when there is a child involved. Here are some considerations:
- Car insurance for a child of divorced parents means that one or both parents will need to have them on their policy.
- Though circumstances can vary from carrier to carrier, some providers will require teen drivers who can drive and access a vehicle at both homes to be on both policies. It’s essential to speak with your insurance carrier to understand the specifics of your auto policy.
- You’ll also want to check if an ex’s policy covers your child, and vice versa when driving the other’s vehicle. Remember, even teen drivers with a permit require coverage.
- Car insurance for teens can also be expensive because they come with more risk. For this reason, you’ll also want to speak with your agent about the best way to cover your child for less. In some cases, you can combine policies for more coverage at a lower premium.
Custody is also going to play a role in coverage. But even homes that don’t act as the primary residence for the child yet have access to a vehicle, may need to have coverage in place.
50/50 Custody Car Insurance
Joint custody opens up the door for more possibilities when it comes to auto insurance. A 50/50 custody car insurance policy for your child can be a great solution, and may even save you money on premiums.
It’s important to note that this arrangement works best when vehicles are being used at both homes. Additionally, such arrangements involving custody only apply to teens under the age of 18 years old.
My Ex Cancelled My Car Insurance…now What?
This type of scenario is exactly why you’re going to want to communicate with your insurance company following a change in your relationship status.
A canceled auto policy can lead to all kinds of terrible losses that we’ve previously mentioned and depending on where you are in the process, removing an ex from a policy is all part of the deal.
There is a lot that goes into this particular subject such as who owns the vehicle being covered by the policy, the policyholder on the coverage, and more. But ultimately, whether your ex has yet to or already has canceled your car insurance, here’s what you need to do:
- Clarify and verify your auto policy’s status with your carrier. Never go off of word-of-mouth. Instead, speak with your insurance agent and see where you stand.
- Never drive without insurance as this can only make things worse.
- Again, when possible, avoid such situations altogether by working with your ex and your insurance company. Even if your ex is uncooperative, your carrier can help you get through this transitional period.
Divorce and Home Insurance
Auto insurance policies aren’t the only thing that couples facing a change in relationship status may have to work through. Dealing with home insurance during a separation or divorce isn’t fun, but it’s yet another important step in the process.
This is particularly important for separated couples that are no longer living together. How you handle your coverage can make all the difference in avoiding a lapse in coverage, suffering from a major loss, and even keeping your mortgage valid.
Speaking with an insurance agent will once again come in handy as these are complex issues that can have several scenarios. Nevertheless, here are some important points for any soon-to-be ex-couple that can help you start this critical part of your journey:
- Whoever remains in the home is going to need to ensure that the home insurance policy is in their name. Contacting your carrier is important to ensure that your policy is up to date and accurate, similar to an auto policy change.
- You’re also going to want to review your homeowners coverage during this time. This is a major life event and it’s likely that a change in coverage is necessary. You may even save money as a result.
- If you are planning on conducting changes now that you are alone in the home, you may also need to notify your carrier. This can be anything as small as installing a home security system to installing a pool. Such additions, as well as remodeling projects, can affect your rates.
After your divorce is finalized, the owner of the home will need to have a home insurance policy in their name, just as they would in any other situation.
Do Both Spouses Need To Be on Homeowners Insurance?
No, in some cases, you will not need to have both spouses on the homeowners insurance policy. The homeowner is the person that needs to be on the home insurance policy.
If both spouses own the home then both names should be on the policy. Otherwise, if there is only one spouse that owns the home, their name is the only one needed.
Making a Home Insurance Claim During Divorce
Just as there are many different ramifications when it comes to the end of a relationship, the claims process gets even more complicated as a result. This could be because a loss could happen while your divorce is ongoing, after the fact, and so on.
If you have an insurable interest and are listed on the home policy, you may still have more bumps in the road than usual, but should be in a much better place to receive reimbursement for a loss. But if not, this is when things can get tricky.
The best way to mitigate these risks is to, again, stay in communication with your insurance provider. Additionally, the legal counsel that is helping you through your divorce should be equipped to help you overcome such issues with your provider. There are also often appeal processes that vary from brand to brand.
This is one of the many reasons working with the right insurance company matters. When the moments are difficult, you’re going to want to enroll with someone that has the experience and tools to help you through the process.
How To Navigate Your Relationship Status, Car Insurance, and Homeowners Coverage
Relationships are complicated and sadly, insurance doesn’t make them any simpler. But with the right knowledge, planning, and team, you can make the best of these situations and protect yourself in the process. The team here at Freedom Insurance Group is here to help.
Our agents are experts and prepared to help you keep your policies up-to-date and help in finding the best coverages for your needs. Here’s how we make a difference:
Multiple Insurance Carriers
At Freedom Insurance Group, we work with more than 25 of the top-rated insurance providers in the state of Texas. This is for many reasons, but provides you with the following benefits directly:
- More carriers mean more options. Our clients receive better insurance product offerings, more discounts, and better opportunities to save.
- A large part of this is because our relationships allow us to quickly compare your coverage and pinpoint the best option for your specific needs.
- Having a team that can work with your carrier directly, especially when dealing with a life event such as a divorce, can help ensure things are in place during these moments of change.
An Expert Team for You
It’s always a good idea to work with experts, but during a divorce, this notion is amplified even further. Remember, failing to handle a relationship change on your insurance policies can end with serious consequences that are all expensive by nature. Having a team helps.
Beyond this, going through any difficult time is made easier with numbers. No matter if you are single and now starting a new exciting chapter, or coping with the end of a marriage, you have a lot on your plate. Let the experts take care of your insurance coverage while you handle bigger matters.
These two benefits are key for all of our clients in both having a better customer experience and saving on coverage. Because we are impartial, we personalize your coverage and help you secure the cheapest policy possible for your risks.
Furthermore, our commitment to excellent customer service helps you when it’s time to sign up, submit claims, make adjustments to your policy—such as changes to your marital status—and much more.
Navigating your relationship status, car insurance, and home insurance policy doesn’t have to be a hassle and can even be a great time to reassess your coverage for potential savings. If you’re dealing with such a life event, give us a call today to contact one of our agents for the best solutions to your coverage needs after a change in marital status.