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 Posted: Wed Jun 03, 2009 3:49 am Post subject: Can auto Insurance deny a claim if your drivers license was |
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Can auto Insurance deny a claim if your drivers license was suspended?
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| Posted: Wed Jun 03, 2009 4:05 am Post subject: |
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If you notified the insurance company prior to the accident (that the individual had a suspended license), then they should NOT be able to deny a claim. Although, if not, this could be a "material misrepresentation" upon which the insurer may be able deny any coverages otherwise provided under the policy.
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autoinsureusa
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| Posted: Wed Jun 03, 2009 8:39 am Post subject: |
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| Quote: | | Can auto Insurance deny a claim if your drivers license was suspended? |
If you had an active insurance at the time of accident the insurer then might not deny the claim. However, they may chose not to renew the policy next time.
Anyway, you must understand that you shouldn't be driving with a suspended license at the first place. |
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simon
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| Posted: Wed Jun 03, 2009 10:33 am Post subject: |
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Depends on your policy wording...have they denied your claim?
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Lori
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| Posted: Wed Jun 03, 2009 10:55 am Post subject: |
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| Your rates will definately go up and they very well could deny renewal. You could expect to pay higher rates for quite sometime. |
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fireyone
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| Posted: Wed Jun 03, 2009 10:28 pm Post subject: Suspended License |
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| They insurance company will more than likely pay the claim, but they will also either jack your rates up at renewal or non-renew your policy all together. If you had a suspended license when the policy was first written and lied about it, then the claim will be denied. |
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unitedinsurancegroupct
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| Posted: Thu Jun 04, 2009 5:54 am Post subject: |
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| Quote: | | They insurance company will more than likely pay the claim, but they will also either jack your rates up at renewal or non-renew your policy all together. |
Does that mean that the insurance company may continue covering the driver with suspended license? I thought that his coverage would get cancelled anyway by the insurer since he is not allowed to drive without license. |
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RupertWBradson
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| Posted: Thu Jun 04, 2009 10:31 am Post subject: |
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| I can not see an insurance company continuing to put themselves at risk by covering the vehicle. I would call them and be sure before anyone gets behind the wheel of that vehicle. There also may be something listed in the policy about license suspension and discontinuing the coverage. |
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fireyone
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| Posted: Thu Jun 04, 2009 1:55 pm Post subject: |
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It is possible, depending on the company, that the insurance company would give immediate notice of cancellation if they found out about the suspended license. But, some may not and just wait to non-renew it. If there is more than one driver on the policy, the driver with the suspended license would probably be excluded from coverage. But, keep in mind, it is possible to have an auto policy without actually owning a vehicle. People do this to acquire their own liability protection.
But, I agree with Fireyone, you should definitely check with the company to see how they would handle it before driving anymore. |
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unitedinsurancegroupct
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| Posted: Fri Jun 05, 2009 3:48 am Post subject: |
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Okay UnitedInsurance, there had been a debate in the board on whether or not a driver can get a coverage with suspended license and not to say the opinions varied widely. But, as far I know that there are few companies out there who would offer insurance even to the drivers with suspended license. Well, there would be several conditions on it or the insured would be charged pretty high for the coverage, but they would get the coverage anyway.
I just want to confirm from you whether or not the information I've is correct. Does it make a good business sense to cover a driver who has been enough ignorant to lose his license? |
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simon
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| Posted: Fri Jun 05, 2009 11:10 am Post subject: |
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Simon, no company is going to write a policy on a driver without a license...this happens after the policy has been in force for some time, then the driver loses their license...
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Lori
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| Posted: Fri Jun 05, 2009 11:22 am Post subject: |
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I remember reading some of the posts on getting coverage without a license but I believe in those instances it was someone who did not have any convictions or another person actually owned the car.
Any insurance company a person goes to one of the first things they check is your driving record. I can not see how anyone could get a DUI or a license suspension past today's computers to get insurance if they had any of these types of marks on their record. |
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fireyone
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| Posted: Fri Jun 05, 2009 1:18 pm Post subject: |
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| Hi Simon, to answer your question, it probably doesn't make good business sense for a company or an agency to offer coverage to a person with a suspended license. Actuarially speaking, things like bad credit and poor MVR's are a strong indication of a poor risk. |
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unitedinsurancegroupct
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| Posted: Fri Jun 05, 2009 5:28 pm Post subject: |
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| Quote: | | Does that mean that the insurance company may continue covering the driver with suspended license? I thought that his coverage would get cancelled anyway by the insurer since he is not allowed to drive without license |
You are correct, they will not issue/renew a policy knowing that the person does not have a valid license. The insurance company is not going to insure someone that cannot legally drive. They would be collecting a premium for something that can only be illegal. Might as well write a policy to insure that bank robbers get paid a minimum amount during their theft.  |
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tcope
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| Posted: Fri Jun 05, 2009 9:11 pm Post subject: |
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| Quote: | | You are correct, they will not issue/renew a policy knowing that the person does not have a valid license |
"key" word in bold...this happens more than you'd think...I'll get a claim, the insured rearended someone, and was arrested at the scene for no license...or other way around, a driver setting at a stop light, gets rearended, didn't do anything'wrong' in the accident, except of course being on the road without a license...  that is generally how insurance company's find out that an insured is unlicensed.
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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