Help - My Auto Insurance is Cancelled by My Insurance Company AAA

[karatelambda]

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.

 

[Insurance-Guy]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

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.

This is fraud. Didn't you think this was wrong?

AAA should have canceled the policy since the car was not registered to you and your wife wasn't listed. You should have gotten something in the mail.

As far as what you can do...get a policy in both yours and your wifes name and pay the correct premium. And if this was the agents advice you should call a supervisor or file a complaint.

Best of luck...

 

[Hefe]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Here in CA, we would write the policy in your name and list your wife as the registered owner but exclude her from coverage as a driver. This means her driving record wouldn't play a part in determining the rate.

Call a Mercury agent and ask them if they can do that in Texas.

 

[Insurance-Guy]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Here in CA, we would write the policy in your name and list your wife as the registered owner but exclude her from coverage as a driver. This means her driving record wouldn't play a part in determining the rate.

Call a Mercury agent and ask them if they can do that in Texas.

I have a few companies that I use that will not allow a named driver exclusion unless the spouse is not licensed. But if this would work it would work...just make sure if thevwife comes to visit she doesn't drive the car. Most of the time it will put the rate back...but some companies charge for having excluded operators...something to the auto driver ratio and the possibility of the eo still driving.

 

[Newby]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Isn't it just $5 to transfer the car title from her name to yours?
Problem solved.

 

[Insurance-Guy]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Isn't it just $5 to transfer the car title from her name to yours?
Problem solved.

This is bad advice and isn't going to solve the problem. He has been listed as single on the auto policy...why not just do it the right way? Because it cost more? Then exclude the wife if she will not drive the car. If you are married you need to list your spouse on your policy...don't you think?

 

[djs]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Wife may not have to be excluded, just listed as 'out of household', since she still lives in Michigan.

This is a hard story to follow, since I don't write in Texas. Carriers have different rules in various states and want drivers listed in various fashions depending how they own and/or use the car.

Part of this will depend on the longer term intentions and the timing of the issues with the wife's drivers license.

I strongly disagree with insurancemans opinion about this being fraud. It would be if the wife lived with you in Texas, but if she doesn't, she should be listed but simply listed as 'not in household', or depending on the carrier, she may have to be excluded.

With some carriers, you have to be the registered owner of the car to insure the car. Some carriers don't make this a requirement, and understand that the user of the car is not always the registered owner. AAA is known for pretty strict underwriting and chances are, the agent you worked with was a newer agent, since they didn't know about this.

Go back, talk to the agent. Don't let them push you into Western United. If you need to, go elsewhere to get your coverage. It isn't that big of a deal.

Dan

 

[Insurance-Guy]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Dan

So you think it is ok to insure a car in the husbands name and not put the spouse on the policy? Tell me how many companies this will fly with? Did he say that the agent listed his wife...excluded his wife...rated out of household? No he said that the policy was written in just his name which I take to mean rated as single...what would you call it?

If it isn't a big deal and his wife was listed then tell me why they are canceling his policy? Because it was written wrong? Disagree all you want I didn't cancel his policy...
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By the way to clarify I did not mean to accuse the OP of fraud but rather the agent was. I know of some agents and companies that knowingly odmit listing drivers with bad records to offer a lower rate. I just had a guy in last week gave him a quote for him and his wife...was saving him some big money over state farm. When I pulled the clue a driver pulled with a claim. Was his 19 year old daughter...just had a $3k loss. Asked if she was in the home...yes...have hr own policy...no. Told him that we would have to add her. He said to me this is why he is leaving state farm because they are adding his daughter. He told me Geico isn't making him add her or exclude her...told him it's not a good idea but do what you want if it is with me she is added or excluded.

Dan I do agree it is different since his spouse is in a different state and I also am not in tx...so I don't know their rules. But most carriers require both spouses to be listed. Otherwise you can't get the married rate.

 

[djs]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

Insuranceman - my point was that the wife lives out of state, not in the household. I wasn't clear if the OP really meant not listed, or not listed as a driver. Since, if I read the post correctly, she has her own AAA policy, this makes a world of difference compared to a totally nonrated driver. She is rated with the carrier already, just not in that state. Now, I grant you, I may be reading between the lines to much on this.

It gets weird when both drivers are listed with the carrier but are in different states. In California, carriers get funny about not listing drivers due to other insurance, but when they are the other insurance they are usually okay with it, though I keep records of the other policy.

Thats why I said, "This is a hard story to follow". Frequently people say one thing but really something similar but different happened. There are some minor facts left out of the OP story, which would make a big difference on whether this is agent fraud or not.

Dan

 

[ThurstonINS]

Re: Help - My Auto Insurance is Cancelled by My Insurance Company

AAA of Michigan canceled the policy because they do not write in Texas. In Michigan with AAA they will only exclude the driver if they have 7 or more pts on driving record.

I would go to a differant insurance company and tell them your story. You should have your wife listed on there some way or how. Exclude her or put her as out of household but she needs to be on there.