It’s not just custody of the children and dividing up the asset and liabilities, soon-to-be divorced couples should also discuss car insurance coverage and responsibility.
— Lawyers have always said that car insurance is either not discussed at all or heavily contested depending on the situation. It gets even more complex once one parent moves out of state if there are differences in insurance policies and regulations with the new state.
One way to decide would be who gets to own the car although there are many cases when even if the car is in the wife’s name, she will demand that her ex-husband pay for car insurance especially if she does not have sufficient income.
One more complication arises when a child turns into a teenager and begins to drive. There is no set working formula for this and if the divorce happened years before the child turned into a teenager, the couple may have to go back into court to settle responsibility.
The terms could be joint responsibility or it could depend on who has sole custody. Whatever the outcome, parents should not be remiss in securing car insurance for their teenager. Insurance companies will consider the following factors when determining the insurance rate: address, driver’s history, lack of experience, car model, and insurance history of parent.
Release ID: 1777