Young Drivers on Parents Insurance?

[BB16]

Hey all, im newly licensed and have a question. I work at an independent agency and I started to go over my moms policies and switch them over to me and I noticed that my two younger brothers (17,19) aren't listed on her policy and shes the main driver on all 3 cars. They have health insurance but my boss said they most likely will not be covered if something happened. Is it typical for agents to not include younger drivers in order to keep peoples premiums down?

 

[djs]

It's typical for people to not tell their agents about younger drivers to keep the premiums down.

Usually, drivers in the household that are not listed are excluded from coverage. They are not covered under permissive use. Also, usually its the newer drivers that have the claim.

When the claim is filed, either 'mom' will end up out of pocket for the accident OR the agent with have an E&O claim. Neither is a good scenerio. Get it fixed now.

Dan

 

[Guest]

BB,

I would have your agent you work for explain the reasoning why they have to be listed.

Typically, anyone living in the household must be listed on the policy.

 

[BB16]

It's typical for people to not tell their agents about younger drivers to keep the premiums down.

Usually, drivers in the household that are not listed are excluded from coverage. They are not covered under permissive use. Also, usually its the newer drivers that have the claim.

When the claim is filed, either 'mom' will end up out of pocket for the accident OR the agent with have an E&O claim. Neither is a good scenerio. Get it fixed now.

Dan

Yeah my whole reason for asking this was because her current agent is a family friend and knows of my brothers. Its just bad practice.

BB,

I would have your agent you work for explain the reasoning why they have to be listed.

Typically, anyone living in the household must be listed on the policy.

No i know exactly why they have to be listed. I was just wondering if that was something that people did a lot because ive came across it twice in my first week. Either way its not the right way to go about it, and its not the way I intend to operate. He told my mom they are covered under their health insurance. My boss and I were talking about how they would not be covered under their health insurance though. It's just a bad way to operate.

 

[djs]

Health insurance has very little to do with auto insurance. Being listed one place doesn't make you covered on the other.

The ONLY crossover is medpay on the auto side, but even that is a stretch.

Dan

 

[Guest]

BB,

this is why it is part of your job to ask questions and tell them, something like if anyone else lives in the HH, they wont be covered if something happens....

But Yes, you will find some people that do this. I want to say it happens often but not common, if that makes sense.

 

[BB16]

I've only been licensed for a week now so i'm still learning and I'm always asking questions. I know that most health insurance won't cover autos because its better covered elsewhere. So if my 19 year old brother got in an accident in what is technically his truck, but its insured under my mom only, then medpay will cover him?

 

[Insurance-Guy]

Why would anyone think that they don't have to list their young drivers? People just try to screw the system...any and every system there is.

There are some crooked agents out there and there are a load of people out there that are failing to list their kids to get a lower rate. Bad thing is I have seen claims like this happen they usually get paid and then there is an exclusion offer or a automatic addition of little johnnie.

Tell your mom she is smarter than that what in the hell does your health insurance have to do with driving a car? And yea I run into policies like this sometimes and TRUST ME when you find out that they don't want you to list their little one on the auto policy...Walk away from it. Just had a huge auto that I easily could have gotten...but when I learned that they had never listed the 17 yr old daughter I told them that we were going to have to list her or I could not issue the policy. She kept her current policy...it will catch up to her!

 

[Guest]

Why would anyone think that they don't have to list their young drivers? People just try to screw the system...any and every system there is.

There are some crooked agents out there and there are a load of people out there that are failing to list their kids to get a lower rate. Bad thing is I have seen claims like this happen they usually get paid and then there is an exclusion offer or a automatic addition of little johnnie.

Tell your mom she is smarter than that what in the hell does your health insurance have to do with driving a car? And yea I run into policies like this sometimes and TRUST ME when you find out that they don't want you to list their little one on the auto policy...Walk away from it. Just had a huge auto that I easily could have gotten...but when I learned that they had never listed the 17 yr old daughter I told them that we were going to have to list her or I could not issue the policy. She kept her current policy...it will catch up to her!

I havent done it, but want to sometimes, but I want to send the peeps current carrier a letter stating additional drivers in the household.
fair is fair. who knows, maybe one day i will.......

 

[BB16]

Thank you for that insuranceman! thats what i was thinking, and exactly what my boss told me. It seems like theres so many crooked agents around here. This agent is a family friend and he failed to mention to my parents how little coverage my brothers will have under their policy. It's a joke.

Then my cousin (21) bought a newer cobalt the other week, titled in her name. Some agent let my aunt insure it under her name, even though its titled in my cousins name, and my cousin isn't even listed as a driver.

The agent insuring my mom said that if one of my brothers were to get in an accident, they would have $5,000 in medpay with our Blue Cross Blue Shield covering any excess injury expenses. How is this so?