A while back, one of my clients had their collision claim denied, as a result of their alleged failure to notify their insurance company that they had a new driver in the household. Their 18-year-old daughter had been driving for a couple years, but they did not inform their agent when she became a new driver. This immediately became an important message to send out. Insurance companies are in the business of collecting premiums; not paying claims. If they can find a reason to deny the claim, they will!
We often hear of residents in the City of Detroit giving their insurance company an address in the suburbs in order to pay a substantially lower premium. Of course, once a claim is made, this “material misrepresentation” is an easy denial for the insurance company.
As is the case with my client, the auto insurance companies want to know who all the drivers are in your household, so they can charge an appropriate premium for the risk they are insuring. Typically, when you obtain new insurance, you are asked how many people in your household are of a driving age. Unfortunately, many people obtain their auto insurance long before they have children of a driving age. Let’s say you are married and have 2 children, ages 14 and 9 when you obtain new insurance. Are you going to remember a couple years later, when your 14-year-old is now 16 and driving, to inform your insurance company? Probably not! What if your 20-year-old nephew moves in, or your mother-in-law? What if you get re-married and two families merge together in one household? It’s so important to review your policies often with your agent, to make sure you are properly protected.
One tactic some insurance companies use when making changes to a renewal policy is to hide those changes deep within the policy language, where most consumers are unlikely to notice them. However, changes to your coverage must be clear and conspicuous; they cannot simply be buried in fine print.
If you’d like peace of mind, feel free to contact me and I’ll review your auto policy at no cost to make sure you have the coverage you need.
And if you or a loved one has been injured in an accident, I encourage you to call us at (248) 538-2900 so we can help ensure you receive all of the benefits and assistance you’re entitled to. I’ll handle the insurance companies so you can focus on what matters most – your recovery.
