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What impact can divorce have on your insurance?

On Behalf of | Aug 3, 2022 | Divorce |

Going through a divorce can alter many aspects of your life. While the fate of your finances and property may be a top concern of yours, it is also important to think about how your divorce will change your insurance policies.

Not only can ending your marriage make your existing insurance more expensive, but you might even lose some of your policies if you share them with your spouse. Kiplinger describes some changes that may happen because of your divorce.

Health insurance

A divorce can upend your health insurance depending on how you receive it. If you share a policy through the employer of your spouse, you might need to seek out your own coverage once the divorce is complete. However, you may qualify for 36 more months of coverage through the federal COBRA law if your spouse’s employer has at least 20 workers.

Homeowners insurance

If your spouse owns the homeowners insurance on your marital home and you move out, you will need your own policy if you get your own house. In the event you retain an existing policy but still move out, you may need to downsize your policy if you move to a smaller residence.

Car insurance

There are a number of factors that could cause your car premiums to go up following your divorce. You will probably move your car to a new address. The housing for your car may change to a less secure form, like going from a garage to an outdoor setting. Ending your marriage can also mean losing marital discounts on your policy.

Given that divorce may result in one or more rising insurance costs, you might choose to factor in insurance changes when it comes time to divide your marital assets and negotiate for spousal support.