QuestionAloha,
My truck, in Hawaii, was recently involved in an accident and is fully insured by Progressive. I have been in California for about 5 months. The adjuster says my being out of state could be a problem. The adjuster has stated my being out of state for so long could negate my right to make a claim. I have paid in full and want to know if there is some kind of loophole concerning my presence in the state?
Mahalo,
Maria
Answer Hi Maria,
If you are out of state, how did your Hawaii truck become involved in an accident? Were you driving it, or was a driver listed on your policy driving it?
If you travel back and forth to Hawaii, there is probably not an issue with you spending time in CA. However, in general, state laws and insurance policies require that you must spend at least half of a registration year in that state in order for your registration to be legal.
In a quick search, I note that Hawaii does not have a state DMV, but rather local DMV's. You will need to check with your local DMV and ask them for information on applicable laws that govern registration of your vehicle and residency requirements.
The insurance company could be a different matter. You will have to read your policy and determine if there are exclusions of coverage if you spend periods of time out of the state where the policy is written. Insurance polices are normally quite specific about this. The reason for this is often because people commit fraud by purchasing insurance in a state with cheaper rates than in the state where they actually reside. That is misrepresentation that can result in cancellation of coverage and a denial of claims.
I'm not sure anything in Hawaii is cheaper :-), so your issue here seems to be if you are in accordance with both your policy and your local motor vehicle laws.
A side issue is if your vehicle was being used by someone who was not authorized to use the vehicle. That can, depending on circumstances, result in a claim denial and possibly a cancellation. Another issue would be if you were using the truck for business and only insuring it for pleasure. Those are the types of things that will get a claim denied and a policy cancelled.
If you've been out of state, and an authorized driver has been driving the vehicle, I see no problem. Or if you spend most of your time in Hawaii, I also see no problem - as long as that does not conflict with your personal policy and your local laws.
One thing I will warn you about. Do NOT just take the adjuster's word for things. If they are going to deny your claim, they must specify the EXACT wording in your policy that allows them to deny coverage. That clause could specify your residency requirements, and it could also specify that you must abide by all applicable laws in your locale. If you are in violation of either, the denial is probably valid. But by all means, make them produce in writing the actual policy violations. Simply put, if it is not a violation of your policy, and if you have not misrepresented the facts - they cannot deny your claim. Well, not legitimately.
Hope this helps.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
