Ask an insurance expert: the insurance non-bs thread

warren needs your money!!!

 

Hey Cromag, hope you're still around and offering up advice. Apologies in advance for all the words, but I don't want to leave out useful details.

I learned this morning that my auto insurance company had dropped me, effective at the end of the month. (Mercury, CA.) Verbage on the note as follows:
A SUBSTANTIAL INCREASE IN THE HAZARD INSURED AGAINST
UNACCEPTABLE VEHICLE

Now, it turns out that I'd been on a non-commercial policy with my personal van (Promaster cargo), that has always had company lettering in vinyl on the side, and Mercury says it doesn't do commercial. Fine. It's their ball, and they can play or not. (I would point out that I'm just a lowly hourly employee; not a business owner, though I do drive it throughout the day, so commercial doesn't seem exactly right, but whatever...)

It seems like this will get resolved by the van getting a commercial policy and our passenger car and renters insurance sticking (temporarily) with Mercury, so that's all good. I kind of expect to get hosed price-wise, but them's the breaks.

My question, if you've made it this far, is about the first reason. A quick google suggests that it applies to people that get moving violations, have open beverages, cheating on allowed drivers, disinformation, pulling the wings off houseflies, etc. (Full disclosure: 2 fender benders in the passenger car over the last decade, the most recent was just a couple of months ago where somebody backed into our parked car. Their insurance paid.) Since that reason sounds kind of bad, and we haven't done any of it, is there any issue with this landing on our clue report and staying there? Is this going to affect the commercial coverage I'm hoping to get soon? If it is bad to have that kind of statement on your clue report, should I appeal it? Who do you talk to for an appeal?

Whew. That was a lot -- sorry. But thanks in advance for any insight.

 

a few different moving parts here….

it’s hard to discern if the issue is vehicle use or vehicle type on a personal policy. some companies also have a use called “business” which sounds more appropriate in your situation. but these standard are set by your insurer.

anything on your clue report can absolutely effect your future insurance status. not all companies use a clue report, but most do. lexisnexis acts as our repository to hold claim information and we all share it with each other.

you can dispute anything on your clue report however, getting things removed are rare. the insurance company who put it on there has to agree to do so.

when you get a copy of your clue report it will come with instructions to dispute anything.

 

Disinformation = having a vehicle you use for work and that's lettered up with the business name insured on a personal auto policy. Doesn't matter if it wasn't done with ill intent, or was just done out of not knowing any better. In fact, if you had a claim under those circumstances, there's at least a chance (a pretty good one in fact) that coverage could be denied for what's called material misrepresentation.

Cromag is spot on about the clue report. Very tough to get it revised, and the info on there can affect you, including with your planned changes to your insurance. Will it affect you? Only one way to know for sure. But it definitely could affect you.

 

Just curious how the insurance company discovered you were using the vehicle for commercial purposes?

 

Appreciate all the input.

For what it’s worth, I was clear with my broker that it was the vehicle I was driving around in all day. It’s anybody’s guess as to what the insurance company was told about my usage.

Mercury asked for photos of the van a few months ago, and I obliged. That would have made the lettering part pretty clear.

The claim denial part is particularly interesting, as I have coworkers who also own their vehicles and have them lettered up… I’ll have to see who has a commercial policy and who doesn’t.

Again, thanks for all the info.

 

just so you know, company logos on a vehicle isn’t a big deal with all insurance companies.

 

Does adding a new driver increase the rates of everyone in the household?

Basically, my daughter just got her license (yay!) and she will be moving-in with me after spending the last couple years with her mother. I have been with my agent for over 20 years and have a pretty good rate(safe driver, no claims, bundle with home, etc).

I plan on letting her drive my Taco some as that's what I taught her with, but she does have a Camry that will be her primary vehicle. What can we do to help ease the financial burden of premiums on her and possibly me? Thanks in advance!

 

I'm no expert, but my parents saved money by putting me on my own policy for a few years. I was allowed to drive my own car but not theirs. Rates for kids under the age of 26 can be brutal - it might be worth pulling quotes both ways.

 

That is *very* useful information — thanks!

And just to add, I dove into my old paperwork, and my primary use is “Acceptable Business Use”. Which made sense at the time.

 

Company logos + vehicle usage is a combination that can really get you into trouble. Logo by itself, not usually a big deal. Can be. But not usually. Logos + using it for business purposes? Problem if you have a personal auto policy and get caught. Heck, no logo but used for business purposes can cause problems too, though this is harder to catch, usually requires a claim occurring.

 

yes and like i previously mentioned, the vehicle type is a risk. certain types of vehicles companies may require a commercial policy regardless of use.

 

call your agent with her license number and have them run a quote.

it’s difficult to guess because companies will use various information about her for rating purposes.

some commons ones are:
gender, marital status, age, years licensed, driving history, claims history

 

Exactly. The main point for OP and anyone reading this particular story is that if you use your vehicle for work purposes (not communting), and/or have your vehicle logo'd up, etc., best to check and see if you need a commercial policy. Better to ask up front than find out the hard way later.

 

part of my job is assessing these types of risks and firing customers!

 

In most states, insurance is required by law, however, there are no laws that require insurance companies to honor insurance policies. They are civil contracts, you have to sue a company of attorneys. Insurance is a protection racket run by organized crime.

 

false.

 

Would this be a bad time to tell you how much my profit sharing check was last year?

 

good point. there is a difference between fraud and misrepresentation.

 

same lol