What Happens with Permissive Use After 2nd Accident?

Three months ago, I wrote an auto policy for an elderly widowed lady for coverage just 4 months ago. She lives alone. Her son borrowed the vehicle and was involved in an accident. claim was paid under permissive use.

now, weeks later, the same son was in another accident. this time at fault. how is that going to work out? I'm thinking her son is driving the vehicle a little more than occasionally. once is a fluke. twice is suspicious.
 
Was driver exclusion form signed? I'm assuming it wasn't but all depends on insurance company. I do not believe they'll cover the second incident
 
odds are, the insurance company will require the son to be listed as a driver or excluded at renewal
 
Outcome: company will cover the claim. This surprised me. I thought EKS was right. I thought the claim would be denied.

odds are, the insurance company will require the son to be listed as a driver or excluded at renewal

Is a company only allowed to force a driver at renewal? Or can they do it whenever they want? I am asking because the insured told me the company made a mistake. According to her, the claims rep said that the rep who handled the first claim made a note to add her son onto the policy. But they never got around to doing it. I wondered if the company dropped the ball here or couldn't do anything about it until renewal? I'm thinking the company is very lobble to cancel them at renewal.
 
Outcome: company will cover the claim. This surprised me. I thought EKS was right. I thought the claim would be denied.



Is a company only allowed to force a driver at renewal? Or can they do it whenever they want? I am asking because the insured told me the company made a mistake. According to her, the claims rep said that the rep who handled the first claim made a note to add her son onto the policy. But they never got around to doing it. I wondered if the company dropped the ball here or couldn't do anything about it until renewal? I'm thinking the company is very lobble to cancel them at renewal.

I think the forcing can be forced whenever, if the insured decided not to be forced; then they can expect the cancellation at renewal. Looks like the carrier forgot to send that letter to have the son added to it; so they ate their mistake. I would expect your insured to get that letter very soon. The cancellation may or may not happen with or without that letter.
 
This probably varies from state to state a bit. In WA they can ASK to have the son added at any time during the term. They can only force the issue at renewal by non-renewing unless he's added. It sound like in this case, that was their intention. But because they didn't follow through with that intent, they're stuck with it for another term.

I think the forcing can be forced whenever, if the insured decided not to be forced; then they can expect the cancellation at renewal. Looks like the carrier forgot to send that letter to have the son added to it; so they ate their mistake. I would expect your insured to get that letter very soon. The cancellation may or may not happen with or without that letter.
 
I've never known claims to be successful in making policy changes. They should send a note to the agent and in fact, whenever there is a permissive use accident, the agent should look to see if the driver needs to be added.

Strange things happen and I would call 2 permissive use accidents strange, though I've had that happen. Never 2 by the same driver though.

Dan
 
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