Insurance Company Won’t Pay!

Posted by By at 4 October, at 15 : 31 PM Print

Question adapted from policyholder question on Chat Line.

Dirk:  I see we have a new question coming in over the chat line Canon. 

Canon:  Looks like a policyholder needs our help.  Ta Da Da DAAA…….  Dirk and Canon Insurance Detectives to the rescue!

Dirk:  Please tell us what is on your mind  Policyholder.  You have our undivided attention.

Policyholder:  It all started out when my now 22 year old son Alex graduated from college about a year and a half ago and found a job in New York City.  Alex was always on my policy as a driver as I own the car that I allow him to drive.  Well because the cost of insurance in New York City is three times what it is here in Ohio I just kept him on my policy.  After all, it is technically my car he is driving.  He had an accident and was found at fault a couple of months ago and now the insurance company sent me a letter stating that they are refusing to provide coverage.  How can they get away with that??


Policyholder:  Hello, Hello is anyone there?

Canon is seen looking up in a mirror and flossing his teeth.   

Dirk:  Whoops just got a little distracted there. (Dirk throws a nail file in the drawer)

Mr. X:   I couldn’t help but overhear your cry for help Policyholder.  Please note the condition one individual insurance policy places upon the family member:       

“Family member” means a person related to you by blood, marriage or adoption and whose principal residence is at the location shown in the declaration.

For coverage to technically apply the family member’s principal residence must be the one shown in the declaration page. Since your 22-year-old son is a resident of another state and his principal residence is not the resident address shown on your declaration page your insurance company could refuse to pay because your insurance company may no longer consider him an “insured” person.    

Your Solution to This Scenario?

If a son or daughter or other relative is no longer a resident of your household they must obtain their own personal automobile insurance policy.  (See your individual policy for details for terms, restrictions and or exclusions.)

Policyholder:  Thank you for explaining Mr. X.  By the way, how do you put up with those guys?

Mr. X:  That’s a whole other story.   

Dirk : You need a new insurance agent Policyholder, Click on Auto Insurance and our friends at Pathway Insurance will take real good care of you.

Canon: Excellent idea Dirk.


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