Policyholder: When my son Zach had his temps I called my insurance company see what my premium would be once he got his license.
It was going to be an extra $110 per month. That’s highway robbery!! Anyway one of my coworkers mentioned that since my cars are already insured on my policy, he would still be covered if he drove my car with my permission. Is that right?
Canon: Sounds right to me.
Dirk: So is this a hypothetical question or has a claim occurred?
Policyholder: Well what happened was he and his friends did take the car to McDonalds (with my permission of course) and they got in an accident. The other two kids did get a little banged up and went to the emergency room. I called it in and a few days later my insurance company sent me a letter denying the claim.
Canon: Did they get to eat first? They have good chocolate chip cookies son.
Dirk: Let’s see. Your car was covered but then they say it wasn’t covered. Hmmm this is both perplexing and puzzling all at the same time.
Mr. X: Well actually gentleman the answer can be found in the policyholder’s insurance policy. Let me show you how his insurance contract reads:
Duty to report changes:
You must promptly notify us when:
- Your mailing or residence address changes;
- The principal garaging address for a covered auto or trailer shown on the declaration page changes;
- There is a change with respect to the residents in your household or the persons who regularly operate a covered auto;
- An operator’s marital status changes
- You or relative obtain a driver’s license or operators permit;
- You acquire an additional or replacement vehicle
Mr. X: Unfortunately there is nothing that this policyholder can do about this particular accident. Insurance companies rely on policy holders to advise them of the changes in circumstances listed above. In the future he must add any and all drivers that are operating his vehicles and residents of his household to his insurance policy. (Individuals must see their individual policies for terms, restrictions, and or exclusions.
Dirk: Another insurance mystery solved sir!
Canon: Onward to adventure and our next claim question!
Dirk : Sounds like you need a new insurance agent, Click on Car Insurance and our friends at Pathway Insurance will hook you up, or give them a call and tell them Dirk and Canon sent you.
Canon: That would be a good idea Dirk. Bad things happen when we pay a visit, I’m just saying.