Don't get caught with your pants down in regards to Insurance

I've been helping a couple on the TW forum with an Auto Insurance dilemma. I have 10 years experience as an all lines Insurance Agent and thought I had seen it all.
Seems like some insurance companies are finding a way to decline coverage in the event of an accident when you have lent your vehicle to someone else to drive and there was an accident.
In this case it was with a current household member that according to the Insurance Company was not listed on the policy so therefore the Insurance Company has declined to cover repairs to the policy holder for damage that occurred when another household party drove the vehicle.
Good time to update your Auto Insurance policy to make sure any potential household members
that may drive your vehicle are listed.

 

What reasonable person thinks that if they have insurance an accident won't be covered if they loan their vehicle to someone - especially a family member? This is getting ridiculous.

 

Unfortunately this seems to be a new out for some companies to deny coverage. Better safe than sorry. It's the shits I agree.

 

simple solution: don't lend your vehicle for someone else to drive.

 

I always thought that's how insurance works. My previous insurer, the same one my family had used for 40+ years, had always explained it this way. If you loan it to a friend or family member it's covered, even if not on the policy, as long as they don't live with you. If it's someone that you live with, the expectation shifts to this person having more ready access to your vehicle, and so they require them to be on your policy as they are now much more likely to use the vehicle. When I moved in with my sister about 10 years ago, we talked to our insurance provider and added each other to our policies for this exact reason, as our broker/provider clearly explained this to us when we called to check. Once I moved out, we removed each other from our policies.

 

Good PSA

However, it blows my mind how people pay for something blindly; know how you're protected and what you're liable for

It costs nothing but a few minutes of your own time to call and ask questions

Only a moron wouldn't bother doing this

 

And don’t use a fly by night insurance company with absolutely lowest coverage

I use Amica or USAA, and way above minimums. Guess what happens if you are at fault and you hit your max? They other party sues you. Insurance is there to protect you, but yes, you do have to pay for it.

I’m not surprised at all they are having coverage denied with some crappy insurance company

 

I was blown away you can even get that low of coverage on insurance... it's like... what's the point?

 

Insurance usually follows the vehicle irregardless of who's driving. Some say otherwise.

The terms "permissive use" and "omnibus claus" are worth looking into.

https://www.investopedia.com/terms/...mnibus clause is a,to use an insured vehicle.


Insurance prices have gotten way too expensive over the years.

 

I find it cheaper to skip insurance

 

My insurance follows me, so if i borrow a buddy's car, then my insurance covers it while im behind the wheel. Now, I don't think, and I should confirm, it would cover MY vehicle if I lent it out.

 

Checks the block to be legal.

 

Seems there are plenty around.

 

The word you're looking for is 'regardless'. 'Irregardless' is a self-contained double negative which ends up meaning 'with regard to'.

 

As have the vehicles being insured, the complexity to repair said vehicles, material costs and labor cost for the good shops.

Not to mention the medical component of a policy and a lawsuit 'free money' public crazed by never ending lawyer ads.

We'll help you get yours, no fee unless we win. Johnny sees this and wants his shot at the gold ring of lifetime pizzas.

 

You shouldn't have to list the drivers, you're paying insurance on the vehicle, not the driver.
I know I'm wrong here but its still shitty, they can suck it.

 

Most that do it aren’t looking for good coverage as much as they are checking the box that requires them to have insurance to drive legally. Like in our state (Michigan) which is a no-fault state and you’re required to carry insurance no matter how crappy it is.

 

Seems like insurance really really wants to see me without pants.

2300/year for two cars. Have not filed a claim with any company in the previous 10. It increased by 600/yr since April 2023 and that's with pulling competing quotes at every renewal.









I really don't want to talk about the house policy either.

 

We’ve had to change insurance about every three to four years now. I think many of the big brands are raising their prices to either make a killing or avoid a potential pay out. Every time we change, we are around $1k for six months on two vehicles. No tickets and that’s with a house policy.

 

holy crap!
We jump back and forth every 2-3 yrs between the 2.
50$ bucks cheaper this yr just by switching.
They would have raised rates 600$ this yr so we switched.
1600$ house 2 cars per yr.
We have an agent doesn’t cost anything so I can tell, she gets quotes, deductible is 500$ more this yr.
We also pay in full!