Divorce is one of those life events that turns everything upside down—and yes, that includes your auto insurance. When a marriage ends, the once-simple process of maintaining a shared policy suddenly becomes a tangled mess of questions: Who keeps the policy? Who gets the discounts? What if the car is in one name but the insurance is in another? And perhaps most importantly—how do you make sure you’re still covered without paying more than you should?
Let’s break it down so it makes sense. And remember—for a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
Step One: Split the Policy
The first thing to understand is that once a couple divorces, the shared auto insurance policy needs to be split. Car insurance is designed around households—not exes living in separate homes. If both parties remain on one policy after the split, it can cause complications in claims, coverage, and legal liability.
In most cases, each individual needs their own separate policy moving forward. That means new applications, new documents, and yes—potentially new rates. The one exception is if both parties are still living at the same address temporarily. Even then, updating the policy is strongly advised to avoid any gray areas.
Who Gets the Existing Discounts?
Multi-car discounts, bundled policies, safe driver bonuses—all those incentives that saved money while everything was under one roof can now be up for grabs. Unfortunately, once the policy splits, so do the benefits.
The person who retains the original policy might get to hold onto certain long-standing discounts (like loyalty or accident-free bonuses), while the other may have to start from scratch with a brand-new carrier. That’s why it’s so important to shop around, compare rates, and not just stick with the old provider out of habit.
In Louisiana and Mississippi, many carriers evaluate individual driving records, coverage history, and even zip codes. So just because something made sense when two people were sharing a garage in Slidell doesn’t mean it still works once one moves to Baton Rouge.
Need help comparing your new solo options? For a quick quote, contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
Ownership and Title Matter
If the car title is in one person’s name and the insurance was in the other’s, things need to get cleaned up quickly. The insured party must have a financial interest in the vehicle. In plain English: don’t keep insuring a car you no longer own or drive.
When the divorce agreement awards a specific vehicle to one person, that person should be listed as both the registered owner and the named insured. Failing to make this change can lead to denied claims and big headaches down the line.
Don’t Forget the Teen Drivers
If kids are in the mix, especially teen drivers, custody arrangements can affect how auto insurance is handled. Most insurance companies want to know where the child primarily lives—and that’s usually where the young driver should be listed.
This can affect premiums, especially if the addresses involved are in areas with different rating factors (yes, even going from Metairie to Mandeville can change the price). Make sure to disclose the correct location, and update your insurer if living situations change later on.
Consider Coverage Limits
Divorce also has a funny way of changing financial priorities. What once was a jointly planned household budget is now two people trying to manage separate expenses. That can lead to temptation to cut coverage limits “just to save a little.”
While understandable, this can be a mistake. Cutting liability or dropping uninsured motorist protection can save a few bucks today—but cost far more if an accident happens tomorrow. It’s smarter to reevaluate coverage strategically with help from someone who understands the unique risks in Louisiana and Mississippi driving conditions.
After 40 years of serving communities across New Orleans, Metairie, Kenner, Gretna, St. Bernard, Slidell, Mandeville, Covington, Baton Rouge, Hammond, Houma, Thibodeaux, LaPlace, Lake Charles, Bossier City, Central, Lafayette, Monroe, Shreveport, and Alexandria—this agency has seen every kind of post-divorce insurance scenario imaginable. The right advice can make a big difference.
Make the Switch Smoothly
When transitioning to a new policy, don’t cancel the old one before the new one is active. A lapse in coverage—even for a day—can result in fines, higher future premiums, or even a suspended license. Plan ahead, notify your agent, and get written confirmation that both the new and old policies have been properly handled.
Also, update the DMV with new registration details. Your address, title, and insurance info should all match to avoid complications during inspections or accidents.
Divorce might end a marriage, but it shouldn’t create an insurance disaster. A little planning goes a long way—and with the right steps, both parties can drive off in their own direction without carrying extra baggage from the past.
For a quick quote, you can contact our quote department directly at (504) 441-RATE (7283) or complete the Online Quote Request form and you will be contacted ASAP.
Stay safe, stay covered, and keep moving forward—no matter what the road throws your way.
