“When discussing the financial aspects of a divorce or a break-up, insurance considerations should be a key component in ongoing and final decisions,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “Dividing up property, changing homes, and altering life insurance policies must be discussed to make sure that both parties, as well as children or other dependents, are financially protected after the separation is completed.”
The I.I.I. suggests couples review the following coverages if they plan to separate or divorce:
1. Auto Insurance
Let your auto insurance company know if there is a change of ownership, or designated driver, for any cars you owned as couple. If you or your former spouse or partner moves to a new home, you should get a separate auto policy immediately. And if either of you needs to buy a new car, arrange for a new auto policy before the car is registered. Removing a former spouse or partner from the insurance policy also protects you from possible liability if he or she is involved in an accident and gets sued.
“If you are separated and your spouse or partner is paying the insurance bills, make sure to provide your contact information to the insurance company as well,” noted Salvatore. “This way you can be notified if your spouse is in arrears. You don’t want to find out after an accident that your coverage was cancelled for lack of payment.”
If you have joint custody of a teen driver, decide which cars or cars they will drive and have them listed on the correct auto insurance policy.