It’s a sad fact of our modern lives that the majority of relationships end rather sooner than the participants expect. In the case of a marriage, this is all the more embarrassing because there are words exchanged suggesting we will stay together until parted by death. The latest figures show that half those marrying have been married before. Ignoring the surge of people marrying in states which have legalized gay marriage, the overall percentage of people marrying has been falling. Nevertheless, it’s highly material to insurance companies to understand your household arrangements. When it comes to insuring vehicles, most companies give an additional 5 to 15% discount to people in a stable relationship. There are further discounts for multiple vehicles on the same policy and when you bundle auto and homeowners policies. So, with the premium rates depending on your family arrangements, you have to make a full disclosure when applying for the policy. If there’s any change in those arrangements that would be relevant to assessing the risk, you have to give notice. Failure to notify entitles the insurer to cancel your policy.
So let’s take this step by step. In most states, there are laws requiring you to give notice within thirty days of a divorce being finalized. However, even though the laws may be limited to divorce and termination of civil ceremony relationships, the same duty applies when any previously stable relationship ends. So who will move out and what will the new address be? What property will be taken? If this includes a vehicle, where will it be parked when not in use? Will only one person now be driving each vehicle? Will they now be driven more or less? Will they be driven at different times of the day and night?
All these and other factors affect the way your auto insurance rates are calculated. Even a change in your credit score because of a change in your level of debt can affect the rate. Finally, as soon as possible, change the ownership on the vehicles. The question of vicarious liability as a co-owner can add to your problems during separation. It would be unfortunate if your partner was driving after separation without full cover and had an accident. You might be included in the legal action to recover damages. Auto insurance requires careful management so make a full disclosure to your insurers.