Auto Insurance kicked the entire family off the policy because a secondary driver is guilty of carelessdriving?

Auto Insurance kicked the entire family off the policy because a secondary driver is guilty of carelessdriving?

A family with 3 vehicles and 4 drivers is now removed from Insurance for good because of one careless driving and no previous accidents. It is heard of and will it effect the rates for the other drivers once they change insurance companies?In addition, this Canadian insurance company does not want to repair the damages of the vehicle or agree to any claimsAny feedback will be appreciated. Thanks

Gambit

Insurance companies have underwriting rules and if those rules state they will not insure a driver with a Careless Driving conviction then that is their rules. Keep in mind a Careless Driving conviction is a SERIOUS conviction. Most insurers will not insure someone with a Careless driving conviction, and the ones that will is going to surcharge you at least 50% for that conviction alone. It would help to know which province you live in (saying a "Canadian insurance company..." isn't very helpful) would be helpful, however I'm guessing you're not in B.C., Saskatchewan, Manitoba or Quebec because those provinces have government run auto insurance schemes and would not drop you unless your license was invalid. In the other provinces with private insurance schemes you may want to speak to your broker/agent about either: a) excluding the driver with the Careless Driving conviction from the policy completely (the driver will not be able to drive any of the vehicles)- b) insuring the driver with the Careless Driving conviction and one of the vehicles elsewhere and excluding the driver from the policy insuring the other 3 drivers and two vehicles (person will only be able to drive one vehicle but they'll still be able to drive). This way the insurer will still renew the policy, even if for only some of the vehicles. This is not a guarantee that they will go along with this but if you're looking to stay with the same insurer this may be the only card you have to play.As for your other point about the company does not want to repair the damages, what was the reason the company gave for not wanting to cover the damages? Was the driver's license suspended at the time of the accident?

Guest

First of all, pay good attention on the text of an agreement with insurance company. I am pretty sure that they have such a 'loophole' to remove all family if it's insured in same company. Probably, insurance company wants to protect itself for additional risk. On other hand, while purchasing such family insurances you probably get some discounts. So that's why company wants to 'punish' whole family, as it's seeing your policies as one large family insurance product.I agree that this look more then unfair, but it's common practice. As to the fact that "Canadian insurance company does not want to repair the damages of the vehicle or agree to any claims" - your insurance policy is an open source of answer to your question. If any of insurance terms were broken, company can refuse to give any 'compensation'. At the same time, it you did not break any of terms, insurance company is obliged to give you payments noted in your policy.And yes, this 'incident' may put your family in the more 'risky drivers' range to the other insurance companies. In any case you can always try to explain the situation to the new company as it is.So as you can see - having all family insured in the same company in most cases means less money you are spending. On the other side, driving history/insurance of any participant is influencing the rest of family. So choose wisely, according to your needs.Good luck!Source(s):Insurance Quotes Toronto: http://insurancequotestoronto.com/Insurance Brokers Toronto: http://insurancebrokerstoronto.net/

sensibleman

If you insure a whole family under one policy, this can happen. No need for accidents either. I made this mistake and two Daughters got tickets (unknown to me) and wife had an accident. We were canceled. The worse was yet to come. Due to being canceled, we wer5e required to carry high risk insurance for 3 years. Another reason that low premium prices are not always the best way to select insurance coverage. Cost me way more in the end.

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