View Single Post
 
Old 01-12-2014, 07:47 AM
Ohiogirl Ohiogirl is offline
Gold member
Join Date: Oct 2008
Location: Seasonal Villager - summer in Columbus, OH
Posts: 1,496
Thanks: 0
Thanked 11 Times in 4 Posts
Default maybe for insurance rates?

Maybe the car insurance rates are cheaper where they are from and maybe they are using a relative's address for their plate renewals, but I can tell you how Allstate insurance adjusters handled (or were supposed to) that before I retired (I had a claim involving this situation).

We paid the claim and referred to underwriting for future. Not sure they are still handling them that way. I think most policies say you must notify of any change of address. A lot depends on the insurance adjuster you happen to get assigned, and your policy and your carrier. That is actually true for many types of claims. Some will pick up on stuff like this, some won't. Some companies have a lot of exclusions in their policy's small print. Be very careful. If a carrier can legally deny a claim, they normally will (if they catch it). That is an adjuster's first task - is there coverage? There isn't necessarily coverage just because you pay a premium.

For instance, Progressive and Safeauto had a clause denying coverage if you were legally intoxicated and caused an accident. I am certainly not advocating drinking and driving, but if you one time had one too many wouldn't you want to be covered by insurance? Some carriers have clauses about driver must have active/current license - if you forgot to renew yours by 2 days, wouldn't you want to be covered? Or if you loaned your car to a grandchild who didn't tell you or didn't know they didn't have a current license? I doubt the agents (sometimes an agent might not even know this stuff) who sell the policies point this stuff out, and most people don't read thru (or can't understand anyway as I think most are written rather ambiguously) their policies before they get them.

You are taking chances if you do this. And sometimes carriers will pay a small claim to keep a customer but if it was a big one (like a fatality or a big injury claim that goes to court), they might deny. Same with healthcare policies that might be cheaper in another state - you need to get one in the state in which you are a legal resident.