Auto insurance not under car registrant's name

[6079]

Oregon.

If I have insured my car in a small town, yet have lived in a much larger town for about a year, and fail to report this change to my insurance company, can I face any penalizations?

Also, what if the car is not insured under the person who the car is registered to and driven by, but his stepmother? The small town insurance companies' representative is aware of this, as he has overseen the payments, but I am not aware of it being officially recognized in any way. Are there any potential consequences?

Thank you.

 

[moburkes]

Oregon.

If I have insured my car in a small town, yet have lived in a much larger town for about a year, and fail to report this change to my insurance company, can I face any penalizations?
Yes. A claim can be denied.

Also, what if the car is not insured under the person who the car is registered to and driven by, but his stepmother? The small town insurance companies' representative is aware of this, as he has overseen the payments, but I am not aware of it being officially recognized in any way. Are there any potential consequences?
Some insurance companies will insure a vehicle that you drive but is owned by a third party. However, you have to give them notice that you don't own the vehicle. Otherwise a claim can be denied. It would be recognized by filing a change of address.
Thank you.

See how simple that was?

 

[6079]

Can you give an estimate to the likelihood of a claim being denied because the car was being driven in another city (about 7 times bigger in this case)? Would it be denied completely or just covered for less money?

Does an insurance company have the ability to check other documents like bills, contracts, etc. to verify where the car has been driven previously?

Should there be some document stating the car is not being driven by the insurer, but rather another driver who happens to be the registrant?

Thanks.

 

[moburkes]

Can you give an estimate to the likelihood of a claim being denied because the car was being driven in another city (about 7 times bigger in this case)? Would it be denied completely or just covered for less money?

Does an insurance company have the ability to check other documents like bills, contracts, etc. to verify where the car has been driven previously?

Should there be some document stating the car is not being driven by the insurer, but rather another driver who happens to be the registrant?

Thanks.

A vehicle being driven somewhere has no bearing on the policy. A policyholder INTENTIONALLY LYING to their insurance company does. I am not going to speculate for someone who feels the need to lie to his insurance company and expects that same company to pay a fraudulent claim.

 

[6079]

A vehicle being driven somewhere has no bearing on the policy. A policyholder INTENTIONALLY LYING to their insurance company does. I am not going to speculate for someone who feels the need to lie to his insurance company and expects that same company to pay a fraudulent claim.

Well, maybe someone can help me, because this insurance company is aware of the fact that the car is being driven in another city and that it is not insured under the registrant's name. They verbally agreed it was OK.
I'm curious now if I need some sort of document that shows they are aware of this, in order to deflate any legal argument they could later make claiming ignorance.

 

[justalayman]

print this thread out, take it with you, walk in to your insurance companies office and hand it to your agent.

He will tell you what you should be doing and how to do it.

 

[moburkes]

Well, maybe someone can help me, because this insurance company is aware of the fact that the car is being driven in another city and that it is not insured under the registrant's name. They verbally agreed it was OK.
I'm curious now if I need some sort of document that shows they are aware of this, in order to deflate any legal argument they could later make claiming ignorance.

Yep. The document you need is a copy of the policy showing the correct address. The answer hasn't changed from the last time you posted.

 

[ecmst12]

It's more likely that if there is a difference in premium cost in the 2 locations, you will be back-charged for the difference from the date you moved. It's not likely they would be able to deny a claim based on an unreported address change UNLESS it was to a different state where your company does not do business.

 

[Country Living]

Also, what if the car is not insured under the person who the car is registered to and driven by, but his stepmother?

This is a confusing statement; however, I'm reading this as the car is not under his care, custody, or control and yet is on his insurance policy. I'm also assuming the driver and custodian of the car is not listed as a driver on his policy.

Did I miss something?

 

[moburkes]

My understanding:
The stepmother is insuring the vehicle although she never drives it, and doesn't own it. He is the registered owner and driver, lives in a completely different city from the stepmother, but the vehicle is insured at her address to keep the rates down. He doesn't want to be honest, but doesn't want to be penalized for lying, either.

 

[lwpat]

Give them a reason and the insurance company will deny a claim. What your agent knows or tells you does not matter.

 

[Country Living]

So... stepmom is insuring a car out of her care, custody, and control and it sounds like the guy may not be a listed driver on her policy. All of this just to avoid higher rates.

It also begs the question of why he doesn't / can't get insurance in his own name.

 

[Country Living]

To answer the OPs initial question of consequences - the step-mom's insurance could be non-renewed in addition to his claim not being covered.

It's just not worth it. No insurance company wants to insure someone who easily and knowingly commits fraud.

 

[6079]

That's all correct, but as I said, the insurance company is aware of all of this as they have been told. They still decided to renew the insurance under the same circumstances. It's not a matter of anyone being dishonest, so I accept your apology in insinuating that.
But the conclusion I get from this, is that when push comes to shove, they can still deny a claim, even for reasons they were aware of at the time of renewing insurance.

 

[moburkes]

That's all correct, but as I said, the insurance company is aware of all of this as they have been told. They still decided to renew the insurance under the same circumstances. It's not a matter of anyone being dishonest, so I accept your apology in insinuating that.
But the conclusion I get from this, is that when push comes to shove, they can still deny a claim, even for reasons they were aware of at the time of renewing insurance.

What you're not understanding is that the insurance agent and the insurance company are not the same. The insurance agent is self employed, not an employee of the insurance company.

The insurance agent won't be screwed if you have a claim that gets denied - you will be.