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Divorce Can Affect Your Auto Insurance Rate

With all the things to consider when you get a divorce, your auto insurance premiums may fall low on the list. But when you get your finances in order after the separation, you need to know how divorce can impact your insurance rates.

Savings for Married Couples

If your auto insurance company offers a discount to married drivers, you'll lose the discount once you dissolve the partnership. More bad news may be on the way if you enjoyed a lower rate based on your ex's clean driving record. You may see your premium go up even more if you're male, young, and have tickets or other traffic violations on your driving record.

Reports show that singles, especially single young male drivers, pay higher auto insurance premiums than young married drivers because they are more likely to be in accidents. In fact, a study conducted by the National Institutes of Health found that single drivers were twice as likely as married drivers to be involved in motor vehicle accidents.

Multi-Policy Discount

Insurers generally offer a multi-vehicle discount when you insure more than one vehicle with the company, helping you to save money. When you divorce, you'll likely lose this discount too.

However, you may be able to make up some of the difference if you bundle your auto insurance with other policies you carry, such as homeowners or renters insurance and life insurance. Combining various types of policies with the same company can gain you a new multi-policy discount.

Deductible

The deductible you choose affects the premium you pay. If finances are tighter after the divorce, you may choose a higher deductible to lower the cost of your auto insurance premium.

When you choose your new policy, run the numbers. Calculate how long it will take the amount of money you save in premium costs each year to equal the deductible you have to pay if you file a claim. Then determine whether you think the savings are enough.

Infrequent Drivers

If you're listed on your spouse's auto insurance policy as a secondary or infrequent driver, buying a separate policy of your own will cost you more.

Still, if you don’t drive frequently, you may qualify for a low-mileage discount. The less you drive, the lower your risk of being in an accident. That means fewer auto insurance claims, reducing the risk to the insurer.

Insurance companies take into account both the number of miles you can put on your vehicle each year and how often you drive. By driving fewer miles, you may qualify for a low-mileage discount.

Vehicle Type

Depending on which vehicle you're left with following the split, you may see your insurance rates rise or fall. The make and model of the vehicle you drive is one of the factors insurers consider when determining the premium you pay.

As a general rule of thumb, pricier and high-performance vehicles are more expensive to insure. That's because they cost more to repair or replace.

Thieves target certain model vehicles more often than others, increasing the risk to your auto insurer. Auto insurance companies also consider high-performance vehicles with more power to attract drivers who are more likely to speed or take other risky chances while driving — factors that can lead to an auto accident.

Move to a New Area

A move to a new area following a divorce can affect your auto insurance premium as well. Your rate may increase if you move to a city that has a high crime rate, particularly crimes involving vandalism and theft. But if you move from an urban area to a rural area that has a lower crime rate — especially as related to motor vehicle thefts — you may see your auto insurance premium drop.

When you go shopping for a new auto insurance policy after a divorce or other major life change, contact Insurance Designers to find out how you can save money on your premiums.
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    Insurance Designers
    4123 Parker Ave.
    West Palm Beach, FL 33405

    Phone: 561-833-AUTO (2886)
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