Divorce, Car Insurance, and Your Monthly Premiums

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Written by Margaret Wack Edited by Nick Versaw

Updated March 2nd, 2023

Getting divorced comes with plenty of financial consequences, from divvying up possessions and assets to figuring out how to divide major assets like a car or a home. 

Your marital status is just one of the many factors that determine your car insurance rates. So, if you’re getting a divorce, car insurance premiums are going to be impacted as well. 

In this article, we’ll cover how divorce affects auto insurance and other insurance policies you may carry. We’ll also offer some advice to find insurance quotes that provide the best possible rates after this life event.

Does Getting Divorced Affect Your Car Insurance Policy?

Married couples living in the same household generally purchase a joint auto insurance policy from their insurance company. This policy covers both you and your spouse, as well as your vehicles.

After you get divorced, you’ll likely need to purchase a new policy that is separate from your ex-spouse. This is especially important if you move to a new address when going through a divorce. But even if you still live together, you may still want to get separate insurance policies in order to separate your finances more clearly.

Alternatively, if your former spouse decides to purchase their own insurance plan, you can simply remove them from your existing policy. Keep in mind that you generally need their consent to do so.

No matter how you plan to handle auto insurance after a divorce, it’s crucial to maintain continuous insurance coverage. Not only will this help to keep your premiums low, but it can also help to ensure that you’re covered in case of an accident.

With a Divorce, Car Insurance Rates Change

Your marital status has a relatively small impact on your car insurance rates, with married drivers saving an average of $61 per year on car insurance. But that doesn’t mean your insurance premiums will stay the same after a divorce. It all depends on what kind of car you drive, your own driving record and that of your former spouse, and other personal factors like where you live and your credit score.

For example, if, when married, you and your spouse jointly insured a brand-new vehicle and a 10-year-old car, your premiums after divorce could depend on which car you end up with. Car insurance costs will be much higher for a new vehicle than an old one.

Similarly, if your spouse has a spotty driving history, your auto insurance rates could drop if they’re no longer on your policy.

Auto Insurance for Divorced Couples With Teen Drivers

If you’re divorced and have children of driving age, you’ll want to make sure that your young drivers are covered when driving both of their parents’ cars.

In some cases, this may mean that both divorced parents will have to add any teen drivers to each of their insurance policies.

Other Insurance Issues to Consider After a Divorce

After a divorce, car insurance isn’t the only type of insurance you’ll need to disentangle. Different types of insurance policies that your marital status may affect include life insurance, health insurance, homeowners insurance, and more.

Life Insurance

In many cases, married couples list each other as the beneficiaries of their respective life insurance policies. If you’re getting a divorce, you’ll need to decide who your new beneficiary will be. In some cases, you may want your former spouse to continue as the beneficiary, especially if you share children. But in other cases, you may want to change the beneficiary to another relative or loved one.

Health Insurance

One of the legal benefits of marriage is the ability to take advantage of your spouse’s health insurance policy. When you get a divorce, both you and your spouse will need to find health insurance coverage independently. If you have children, you’ll also need to decide which of you will be responsible for insuring your children.

You may be able to secure health insurance coverage through your employer. But if your job doesn’t come with benefits like health insurance, or if you’re self-employed, you can purchase coverage through the health insurance marketplace. Divorce counts as a qualifying life event, which means that you may be able to shop for health insurance coverage outside of the open enrollment period.

Renters Insurance or Homeowners Insurance

If you rent or own a home with your former spouse, you’ll need to decide on your living arrangements going forward. Whether you choose to stay in the same home or move somewhere else, you’ll likely need to purchase a policy that is separate from that of your spouse. Homeowners must typically purchase homeowners insurance, and while renters insurance isn’t always required, it’s still a good idea.

Making the Most of Your Car Insurance Policy After a Divorce

Divorces can be stressful and logistically complicated. If you’re going through a divorce, car insurance coverage is probably far from the top of your list of priorities. That said, it’s still important to make sure that you maintain proper coverage during and after your divorce.

Splitting Your Assets

When you get divorced, you’ll need to decide which of you is keeping each vehicle, along with other related assets. This can impact the cost of your car insurance depending on which vehicles you choose to keep, along with if you decide to change your address or move to a different city or even a different state. You’ll also need to make sure that vehicle titles reflect what is determined in the divorce settlement.

Reviewing Your Insurance Needs

Whether you’re purchasing separate insurance policies after a divorce or modifying a current policy, it’s a good idea to review your insurance needs to make sure that you’re getting the right types of coverage and coverage amounts for your own car. For example, you may want to add on optional new coverage if you don’t already have it, like comprehensive insurance coverage or collision insurance coverage.

On the other hand, you may decide to drop types of insurance coverage you no longer need. For example, you may not need gap insurance coverage if you’re no longer driving a brand-new car. If you’re not sure exactly what types and amounts of insurance you need on your auto policy, you can always discuss insurance decisions with an insurance agent or your car insurance company.

Shopping Around for Insurance Quotes

The best way to find an insurance provider with adequate coverage and low rates is to shop around. When purchasing your own policy, your rates may be different than they were when you were married since your former spouse’s personal factors, like their driving history, may have affected your rates. Getting personalized auto insurance quotes from multiple different providers can help to ensure that you’re not overpaying for a policy.

At Compare.com, it’s fast and easy to shop for car insurance from some of the nation’s top providers. Just enter some information about yourself and your vehicle, and receive personalized quotes in just a few minutes!

Margaret Wack Insurance Writer

Margaret Wack is an auto insurance writer for Compare.com. She has written about insurance and personal finance for brands and publications including Investopedia, Bankrate, MoneyGeek, The Insurance Bulletin, and more. Margaret earned a bachelor's degree in classics, comparative literature, and poetry from Smith College and an interdisciplinary master's degree from St. John's College.