How is auto insurance affected by a divorce when there is a debt owed and its in both parties names?

15,000 owed and in the middle of settling community property. She is the primary driver. As of right now the insurance is set up as if we were still married as the insurance company is not aware of the divorce. What would happen if she were to get into an accident in the vehicle.

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2 Responses to “How is auto insurance affected by a divorce when there is a debt owed and its in both parties names?”

  1. Kizzy Says:

    The only concern the insurance carrier would have is who’s going to pay the premium , who going to be the rated driver and where the vehicle will be lodged.

    If an accident happens, if both of you are still on the policy…both are still insured.

    When the settlement is situated, the one turning over the car needs to contact the insurance carrier and remove their name from the policy.

    As for the vehicle, if it’s in both names and still financed..both are responsible for the payment until the contract is paid off or re-financed.

  2. David W Says:

    She’d be covered. If the divorce is final, the driver who gets the car needs to get it insured in/his her name alone. This might require a new policy; I don’t think you can just cut off one name.