by Guest » Sun Jan 09, 2011 02:34 am
My wife is in Michigan attending school while I work in Texas. So we don’t live together. The title of the car that I am driving is under my wife’s name only (since it was bought before we got married).
As I moved to Texas, I drove that car to Texas and need to register the car in Texas. To register my car, I have to provide auto insurance. So I went to AAA WITH my wife (the car was insuranced by AAA in Michigan). Since my wife’s drive record is not very good, the agent told us that she will do the insurance under my name solely – which will get me a lower premium. She told us never told anyone. In this way, I got auto insurance.
With this insurance, I went to county tax office, got my car registered and got a new plate, then went on to get my new Texas driver license. (The title is still under my wife’s name only)
However, about two months later, I received a letter from AAA saying that my insurance is cancelled because I am not the owner of the car. My agent never notified me, so I was really surprised at this letter.
What should I do next? Do I go to talk to this agent? Do I go to another insurance company? Will this cancellation affect my premium if I go to another insurance company?
Thank you very much.
As I moved to Texas, I drove that car to Texas and need to register the car in Texas. To register my car, I have to provide auto insurance. So I went to AAA WITH my wife (the car was insuranced by AAA in Michigan). Since my wife’s drive record is not very good, the agent told us that she will do the insurance under my name solely – which will get me a lower premium. She told us never told anyone. In this way, I got auto insurance.
With this insurance, I went to county tax office, got my car registered and got a new plate, then went on to get my new Texas driver license. (The title is still under my wife’s name only)
However, about two months later, I received a letter from AAA saying that my insurance is cancelled because I am not the owner of the car. My agent never notified me, so I was really surprised at this letter.
What should I do next? Do I go to talk to this agent? Do I go to another insurance company? Will this cancellation affect my premium if I go to another insurance company?
Thank you very much.
Posted: Sun Jan 09, 2011 05:55 am Post Subject:
However, about two months later, I received a letter from AAA saying that my insurance is cancelled because I am not the owner of the car. My agent never notified me, so I was really surprised at this letter.
Two things . . . first, you need your wife to sign over title to the vehicle to you or add your name on title ("Mr and Mrs" [requires two signature to sell the vehicle] or "Mr or Mrs" [either owner can sell the vehicle]), or you will need to include your wife on the policy -- because with only her name on title, AAA is correct . . . you have no insurable interest and cannot insure the vehicle. With both your names on title, you could insure the vehicle and exclude her as a listed driver to avoid any upcharge in the cost of your coverage.
Second . . . you may have a negligence claim against the agent's "ERRORS AND OMISSIONS" policy for any financial loss you incur as the result of this episode.
Do I go to another insurance company? Will this cancellation affect my premium if I go to another insurance company?
It very well could affect your new policy premium. Almost all P&C insurance applications have a question about having been cancelled previously. You cannot avoid answering that question truthfully without being subject to having another policy cancelled for failure to disclose material information. Any increase in the cost of coverage (like for like) would be the basis of your claim against the agent's E&O policy.
Additionally, you should not hesitate to file a complaint against the agent with the state Dept of Insurance where he/she is licensed. This conduct is unethical.
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