Auto Insurance Claims/auto insurance

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Expert: - 7/5/2009


Question
My daughter lives in MO and bought a 2008 car last year which is fully insured. She has an unlicensed boyfriend who lives with her and drives her car sometimes.  He tells her that her insurance will cover anything that happens even if he is driving.  The insurance company is not aware that an unlicensed adult lives with her. Also, he owns an old truck which she included her name on the title with his so that it could be insured by her. He drives it on a daily basis, and also says insurance will cover it in the event of an accident. I've told her she is putting her financial security at risk (has great credit, owns a home.... while he has nothing to lose) letting him drive her vehicle...as well as having her name on the title of his truck.  He says I don't know Missouri Insurance and that it will cover any accident even if he is driving.  Is he right?

Answer
She has misrepresented a material fact on her insurance applications.  If a loss occurs and the insurance company figures out what she did, they will attempt to void the policy.  Voiding means the policy never existed and they return her premium but do not cover losses.

Realistically, it is difficult to void a policy but the facts seem pretty clear here, so they could very well succeed.  In my opinion, this is also insurance fraud and they could decide to pursue her criminally.

What she is doing is illegal and not smart.  They might get away with it, but is is unethical and very dangerous.

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Expertise

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer......I can answer questions related to any aspect of Automobile insurance claims and coverages. I can provide an inside look at how insurers operate. I always treat my customers fairly and want to help make sure you are treated fairly. However, please keep in mind that being treated fairly according to the law does not guarantee that you will get what you want. I can also answer some questions regarding Homeowner's and other types of insurance claims. I have handled all types of auto insurance claims and coverages. I am NOT an automotive repair expert but can give advice re how insurers handle complex repair issues. Please keep in mind that every state has its own set of laws pertaining to rules of the road, liability, and insurance. No one is an expert on every state. I am most familiar with laws in Maryland, DC, West Virginia, and Virginia, but will attempt to answer questions for other states. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Experience

I am currently an Auto Claims Manager for a large insurance company. I have 18 years experience in the industry, having worked as a Claims Adjuster, Injury Settlement Negotiator, Claims Manager, SIU/Fraud Investigator, and Compliance Officer. I am not an attorney an cannot provide legal advice. My advice will be my opinion based on my experience.

Organizations
CPCU Society. Adjusters license in multiple states. International Association of Specal Investigators

Education/Credentials
I have a B.S. in Finance and have completed the AIC and CPCU designations.

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