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Do I need to tell my insurer if I get divorced?

Do I need to tell my insurer if I get divorced?
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If you are going through a divorce, you have probably had enough of life admin. Yet there are likely to be some loose ends still to tie up. If you’re wondering what you need to do after a divorce, I bet ‘tell your insurer’ is not high on your list.

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However, your marital status is one of those things that insurance companies want to know. So let’s take a look at who you need to tell your insurer after a divorce.

Do I need to tell my insurer if I get divorced?

Insurance companies take a lot of different factors into account when calculating your premium. One of these things is your marital status. So if your status has changed, it is probably best to tell your insurance company. This is largely because you don’t want anything to invalidate any insurance claims you may need to make.

Just brace yourself for your premiums to rise. Unfortunately, divorced people are considered ‘riskier’ than those that are married or single.

Whatever your situation, it is always worthwhile using comparison services for your car or home insurance. They typically save you money by finding you the best deal and help to ensure that you have the right cover.

As a side note, if you are informing your insurer mid-way through an annual policy, you may be charged an admin fee for the change of status.

Who else do I need to tell?

When looking at what to do after a divorce, it is a worthwhile exercise to make a list of other financial providers you need to inform.

Bank

If you have a joint account with your ex-spouse, then you will need to talk to your bank or building society. Be mindful that the bank may freeze your account when notified of a divorce. This will stop any direct debits or standing orders from being paid.

Once you are divorced, it is best to close any joint accounts. You will need to agree with your ex-spouse who will transfer which financial responsibilities to their account.

It is also worth checking your credit report to see how else you are financially linked. For example, do you have any credit cards, outstanding hire purchases, loans or direct debits that you are both responsible for?

Mortgage provider

If you have a mortgage together, the next steps after a divorce will largely depend on what you have agreed to do with the marital home.

Obviously, if you sell the property, your mortgage provider will need to be informed. If you are transferring ownership of the property, or if one of you is looking to take the mortgage on by yourself, then you will need to get in contact with your lender.

HMRC

You should tell HMRC about relationship or family changes. This is because it could affect the amount of tax you pay. In fact, it is best to tell the tax office as soon as possible about your separation or divorce in order to avoid paying too much tax.

Local council

As your living arrangements have probably changed following your divorce, it is worth letting your local council know. If you are a sole adult living in a property, you should be eligible for a 25% sole occupancy council tax reduction.

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