QuestionOur insurance agent is trying to retroactively force place my wife on my daughter’s coverage for my daughter’s vehicle. I need to know if this is an allowable action and if we can refuse legally
Back in March my wife who is covered under my policy was driving my adult daughter’s car when another motorist hit the car. My daughter who lives with us and does not pay rent, filed a claim for the accident which was paid. But now the agent has told her she has to add my wife to her coverage and charge for this cover retroactively back to March. I suspect that this could be a common tactic you would know about. Can the insurance company legally force my daughter to add my wife and is there anything we can to do prevent this?
James C. Miller
(623) 824 6152 cell
Answer Hello James,
There a few issues here. While I don't have all the facts, I can provide you with some basic rules and information.
First, is your wife a regular driver of your daughter's car? If so, your wife should have been on the policy to begin with. Same with you.
Second, if neither of you ever plans to drive your daughter's car, then both of you should be excluded from her policy and vice versa. If you are excluded and you get into an accident, your daughter's policy would not cover any claims if either of you was driving her car. Same for your policy and your daughter as a driver.
You don't mention how long either of you have had your policies. However, when you first completed an application, all drivers needed to be listed on each policy. Depending on the terms of the policies, not informing the insurance company of all drivers could result in a misrepresentation and your policies could be cancelled. I am presuming this is what your agent is trying to avoid.
In all subsequent renewals, the company should ask if your household has changed. To be perfectly safe, you should inform your company or your agent when another licensed driver becomes a member of your household. It's all about risk to the insurance company. Another driver poses greater risk, and higher premiums.
Can the insurance company force your daughter to add your wife? No. But you run the risk of having all subsequent claims denied, and for having the policy cancelled. Unfortunately,all drivers either need to be listed or excluded on both policies. That's your choice.
I don't have all the details here, but hope this has answered your questions.
Jane Pytel
http://SolutionsForYourInsuranceClaim.com
http://FloridaAutoInsuranceCentral.com
