Will a P&C Company Drop a Teenaged Driver for an Accident?

[DayTimer]

Hey P&C friends,

A friend of mine on FB mentioned that she is now paying $10,000/year for her auto policy :two adult drivers and a teenaged son. She has considered shopping for a better rate. Her current agent told her that if they left for a different company, and if her son were in an accident, that the new company would then drop them, whereas the current carrier wouldn't do that because they have been with them for 10 years.

She does not have their homeowners with that carrier as they were $500/year more than Allstate.

Is that threat regarding how a new carrier would treat them comapred to the current carrier accurate? Is that a common practice in the P&C world?

Thank you

EDIT: The state is Florida

 

[Markthebroker]

Her current agent told her that if they left for a different company, and if her son were in an accident, that the new company would then drop them

Maybe, maybe not. Depends on the carrier. There is no way to know that for sure. Things are changing a lot right now in the world of auto insurance. If her son gets in an accident she is going to want to shop the rates around after that anyways, so no loss there.

whereas the current carrier wouldn't do that because they have been with them for 10 years.

Maybe that's true, maybe not. I would never promise what a carrier will or won't do after a claim, regardless of how long my client has been with them.

Is that a common practice in the P&C world?

Is misleading and lying to clients common in P&C? Unfortunately, yes. At best, this guy is slimy. More than likely he is flat out lying.

 

[DayTimer]

Is misleading and lying to clients common in P&C? Unfortunately, yes. At best, this guy is slimy. More than likely he is flat out lying.

Thanks for the response. I was hoping to hear from you on this.

 

[fed up]

If her rate is high because of the driving habits of her son then the chance of finding a better rate with another carrier are slim. Her current carrier can ask her to exclude the young driver if that is permitted in her state and her rate will decrease but there would be no coverage if the son decides to drive any vehicle in the household. A new quote from a different carrier would certainly pull driving records and loss history which may make for an even higher rate. her best bet may be to purchase a vehicle in her son's name and see what his rate is on an assigned risk policy and let him decide if he wants to afford his insurance for the privilege of driving

 

[LostDollar]

In my, admittedly limited, experience, driving information trumps length of being with the carrier.

I have since had to change away from State Farm for reasons I am not happy about, but at the time I had had auto coverage with State Farm for over 50 years. They came up with some kind of licensing or driving information for my son-in-law they did not like and gave notice of cancellation of coverage for my entire household.

It took 2-3 days but my son-in-law was able to show and convince them that they had made a mistake, and the company then rescinded the cancellation, but that was a very frightening time for us in regard to auto insurance.

 

[LostDollar]

@Markthebroker @fed up Is this a place where it would be appropriate for you to tell op about some carriers giving a discount on auto if the carrier gets both home and auto business?

All I know about that is the direction I got from the agent that placed me with my current carrier.

 

[fed up]

@Markthebroker @fed up Is this a place where it would be appropriate for you to tell op about some carriers giving a discount on auto if the carrier gets both home and auto business?

All I know about that is the direction I got from the agent that placed me with my current carrier.

adding a home policy will reduce the auto premium through a bundle by about 5-10% depending on the carrier. The crux of this policy question is why so high and how to mitigate that cost. the OP does not indicate that she received a cancellation letter, just that they are paying 10 grand for a policy. If everyone in the household has terrible driving records which have driven up the cost then attempting to change carriers is a no go. If the kid is the reason there are options available for Mom and Dad