Divorce, Spousal Death, and Auto Insurance

The trauma of divorce or spousal death leaves many individuals with priorities other than auto insurance. Ending a marriage or losing a partner can have a great impact on the cost of premiums and the amount of coverage needed. Divorce and widowhood affect auto coverage in many ways.Insurance companies base coverage on where a vehicle is garaged when not in use. A change in residence may nullify any payout in the event of an accident if an ex-spouse is living elsewhere. In a worst-case scenario, you can face policy cancellation. If the vehicles are classified as joint property, then you will typically maintain a single policy with your spouse until the final divorce papers are signed and distribution is made.Assets also change and this will affect the coverage benefits of a vehicle insurance policy.In the event of a divorce or spouse’s death, you should take the time to review collision, comprehensive, liability, personal injury protection, and uninsured motorist portions of your policy. Consider add-ons such as towing and repairs, rental coverage, and gap insurance. Any of these are potential windfalls if you're dealing with an accident as a single person.