How does divorce affect insurance?

Saturday, December 1, 2018by  PEMCO Insurance

seated couple with crossed arms.It's a somber note as we enter the holiday season: Divorces spike soon after the decorations are put away. Reasons range from parents holding off to "give the kids a good holiday" to couples waiting to part ways until the New Year to avoid tax complications. Like any life-changing event, divorce can affect your insurance.

Most divorced couples find themselves facing at least one of these scenarios:

  • One or both people change address. Insurance rates factor in where you live (traffic density and the statistical number of accidents for the area) and how far you drive. Your rate could go up or down depending on where you move.
  • You could lose your multiple-policy discount when you move out. You can maintain it, however, if you buy insurance for your new place through the same company that provides your auto coverage.
  • Your ticket- and accident-forgiveness benefits may not follow you. If you and your ex-spouse stay with PEMCO, both of you will most likely get the benefit of your years of good driving together. One of you simply will be issued a new policy number. If you go with another company, though, you may find yourself starting over. (The same is true for home policies.)

We understand how overwhelming details of a divorce can be. If you have questions, please call your local PEMCO agent or 800-GO-PEMCO and we can walk you through the specifics of your situation.



Policyholders can't remove their ex-spouses or partners from a policy. That's the kind of change that a person must do themselves.

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