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Auto Insurance Claims/Can I add collision and comprehensive coverage for a short period?

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Expert: - 6/11/2011


Question
QUESTION: My car currently has only liability coverage. Can I add collision and comprehensive coverage just for one week? In other words, I will remove them after one week.

ANSWER: You can, but I can't think of any valid reason to do this other than fraud.  Insurance fraud is a felony and insurers and law enforcement will prosecute.  When a claim occurs shortly after a policy change is made, the adjuster is given a notice to investigate.

---------- FOLLOW-UP ----------

QUESTION: Why are you so sensitive about the fraud? I will pay the new premium after I add the new coverage. Then I will remove them. So, the insurance will refund me unused the premium. In other words, I will only pay one week coverage. Is it not allowed or the new coverage must be purchased for some period, one, three or six months?

Answer
Insurance is for losses that occur unexpectedly during the policy period.  Not for a loss that has already occurred.  If I understand you correctly, you are planning to commit a felony punishable by prison and fines.  Is there some other valid reason for doing this that I am unaware of?  I'm not sure why you use the term sensitive.  I'm pretty sure the police, prosecutor, and insurer will not see it is as being sensitive.

Auto Insurance Claims

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Claims Guy

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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