Can auto Insurance deny a claim if your drivers license was
by Guest » Wed Jun 03, 2009 03:49 am
Can auto Insurance deny a claim if your drivers license was suspended?
Total Comments: 30
Posted: Fri Jun 05, 2009 11:22 am Post Subject:
I remember reading some of the posts on getting coverage without a license but I believe in those instances it was someone who did not have any convictions or another person actually owned the car.
Any insurance company a person goes to one of the first things they check is your driving record. I can not see how anyone could get a DUI or a license suspension past today's computers to get insurance if they had any of these types of marks on their record.
Posted: Fri Jun 05, 2009 01:18 pm Post Subject:
Hi Simon, to answer your question, it probably doesn't make good business sense for a company or an agency to offer coverage to a person with a suspended license. Actuarially speaking, things like bad credit and poor MVR's are a strong indication of a poor risk.
Posted: Fri Jun 05, 2009 05:28 pm Post Subject:
Does that mean that the insurance company may continue covering the driver with suspended license? I thought that his coverage would get cancelled anyway by the insurer since he is not allowed to drive without license
You are correct, they will not issue/renew a policy knowing that the person does not have a valid license. The insurance company is not going to insure someone that cannot legally drive. They would be collecting a premium for something that can only be illegal. Might as well write a policy to insure that bank robbers get paid a minimum amount during their theft. :)
Posted: Fri Jun 05, 2009 09:11 pm Post Subject:
You are correct, they will not issue/renew a policy knowing that the person does not have a valid license
"key" word in bold...this happens more than you'd think...I'll get a claim, the insured rearended someone, and was arrested at the scene for no license...or other way around, a driver setting at a stop light, gets rearended, didn't do anything'wrong' in the accident, except of course being on the road without a license... :roll: that is generally how insurance company's find out that an insured is unlicensed.
Posted: Sat Jun 06, 2009 01:13 am Post Subject: insurance
I have a question about this ENTIRE thread. If the Driver DID have a suspended DL, ALREADY, and was driving then he/she was driving illegally ALREADY. If he/she tried to file a claim for something, how could ANY Insurance Co. accept it if the driver was driving illegally? Just kinda curious about THIS one.
Posted: Sat Jun 06, 2009 02:56 am Post Subject:
Because no where in the policy does it exclude coverage for that. It's illegal... so is driving with en expired tag, running a red light, or not stopping at a stop sign. All of these are, obviously, not excluded actions.
The penalty for driving without a DL is addressed by the criminal system... not the civil system.
Posted: Sat Jun 06, 2009 08:46 am Post Subject:
I feel that many would prefer not to inform the insurance company about the suspension since they would be driving anyway. So there is no way for the insurance company to know that the policy holder was driving with valid DL before an accident happens or the date of renewal arrives. And, since in this period the driver kept the policy active they can't deny the claim actually, they are bound by the terms of the contract.
Posted: Sat Jun 06, 2009 12:00 pm Post Subject:
As crazy as it sounds that's just the way it is..there's no exclusion for this...and a good thing..if you're the person that is (let's say) rearended by a non-licensed driver, how pissed are you going to be if his insurance company said, 'tough nuts, he's not licensed we aren't paying, use your collision coverage, pay your deductible, and rental out of your own pocket, claim closed!" Wouldn't make you very happy I'm sure..
Once the carrier knows (from the accident)...that their insured is not licensed any adjuster worth their salt, will immediately send in an underwriting report, requesting their policy be non-renewed, of course that's like closing the barn door after the horse got out....
Posted: Sat Jun 06, 2009 01:06 pm Post Subject:
As crazy as it sounds that's just the way it is..there's no exclusion for this.
I think there SHOULD be. Seems alomost like a 'Catch 22' thing.
of course that's like closing the barn door after the horse got out....
Good explaination, LORI.
Posted: Sat Jun 06, 2009 07:56 pm Post Subject:
No I agree with Lori. Good thing their isn't. How would you like to own a car and pay insurance for years and then get hit by a stupid driver with no license and then hear "sorry your SOL". I do not think their should eb coverage for the person who hit you. If it was their vehicle who hit another person I would pay the victims only in the accident and not cover the suspended driver.
Posted: Fri Jun 05, 2009 11:22 am Post Subject:
I remember reading some of the posts on getting coverage without a license but I believe in those instances it was someone who did not have any convictions or another person actually owned the car.
Any insurance company a person goes to one of the first things they check is your driving record. I can not see how anyone could get a DUI or a license suspension past today's computers to get insurance if they had any of these types of marks on their record.
Posted: Fri Jun 05, 2009 01:18 pm Post Subject:
Hi Simon, to answer your question, it probably doesn't make good business sense for a company or an agency to offer coverage to a person with a suspended license. Actuarially speaking, things like bad credit and poor MVR's are a strong indication of a poor risk.
Posted: Fri Jun 05, 2009 05:28 pm Post Subject:
Does that mean that the insurance company may continue covering the driver with suspended license? I thought that his coverage would get cancelled anyway by the insurer since he is not allowed to drive without license
You are correct, they will not issue/renew a policy knowing that the person does not have a valid license. The insurance company is not going to insure someone that cannot legally drive. They would be collecting a premium for something that can only be illegal. Might as well write a policy to insure that bank robbers get paid a minimum amount during their theft. :)Posted: Fri Jun 05, 2009 09:11 pm Post Subject:
You are correct, they will not issue/renew a policy knowing that the person does not have a valid license
"key" word in bold...this happens more than you'd think...I'll get a claim, the insured rearended someone, and was arrested at the scene for no license...or other way around, a driver setting at a stop light, gets rearended, didn't do anything'wrong' in the accident, except of course being on the road without a license... :roll: that is generally how insurance company's find out that an insured is unlicensed.Posted: Sat Jun 06, 2009 01:13 am Post Subject: insurance
I have a question about this ENTIRE thread. If the Driver DID have a suspended DL, ALREADY, and was driving then he/she was driving illegally ALREADY. If he/she tried to file a claim for something, how could ANY Insurance Co. accept it if the driver was driving illegally? Just kinda curious about THIS one.
Posted: Sat Jun 06, 2009 02:56 am Post Subject:
Because no where in the policy does it exclude coverage for that. It's illegal... so is driving with en expired tag, running a red light, or not stopping at a stop sign. All of these are, obviously, not excluded actions.
The penalty for driving without a DL is addressed by the criminal system... not the civil system.
Posted: Sat Jun 06, 2009 08:46 am Post Subject:
I feel that many would prefer not to inform the insurance company about the suspension since they would be driving anyway. So there is no way for the insurance company to know that the policy holder was driving with valid DL before an accident happens or the date of renewal arrives. And, since in this period the driver kept the policy active they can't deny the claim actually, they are bound by the terms of the contract.
Posted: Sat Jun 06, 2009 12:00 pm Post Subject:
As crazy as it sounds that's just the way it is..there's no exclusion for this...and a good thing..if you're the person that is (let's say) rearended by a non-licensed driver, how pissed are you going to be if his insurance company said, 'tough nuts, he's not licensed we aren't paying, use your collision coverage, pay your deductible, and rental out of your own pocket, claim closed!" Wouldn't make you very happy I'm sure..
Once the carrier knows (from the accident)...that their insured is not licensed any adjuster worth their salt, will immediately send in an underwriting report, requesting their policy be non-renewed, of course that's like closing the barn door after the horse got out....
Posted: Sat Jun 06, 2009 01:06 pm Post Subject:
As crazy as it sounds that's just the way it is..there's no exclusion for this.
I think there SHOULD be. Seems alomost like a 'Catch 22' thing.of course that's like closing the barn door after the horse got out....
Good explaination, LORI.Posted: Sat Jun 06, 2009 07:56 pm Post Subject:
No I agree with Lori. Good thing their isn't. How would you like to own a car and pay insurance for years and then get hit by a stupid driver with no license and then hear "sorry your SOL". I do not think their should eb coverage for the person who hit you. If it was their vehicle who hit another person I would pay the victims only in the accident and not cover the suspended driver.
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