Insurance law question..

[Coupe Devil]

OK since I still live with my parents I am currently on they're vehicle insurance policy. Now I want to write my own policy under a different company ( and have the same coverage ) but.. heres the thing. My current insurance person says that if I cancel my insurance with a ( Grange Mutual ) and write my own with a differnt company ( Progressive is the company I want to use), my parents insurance will be dropped completely.. They say since I live in the same household, it is possible for someone else in that household to drive my vehicle, and that they would not be covered while doing so. Can they do that?? I make it no secret that I am getting raped by this insurance company ( GRANGE SUCKS MY AZZ ) but I have got to start saving some money FAST. My insurance comes to a grand total of $2772.?? a year. Yes that is Two Thousand Seven Hundred Seventy Two Dollars... Is there anything I can do. .Progressive's online quote, gave me a price of $1502.?? for a years worth of coverage..

Help.

Bradley

[The Deuce]

That doesn't seem right. I am not on my brothers policy, but when I drive his car I am covered and the reverse is true.

Some insurance companies have issues with drivers under 18, or people with real bad records (ie DUI probation) on others insurance. As long as you have coverage as the driver, and they have coverage for the car, and "friends or family" then you should be ok.

It really SHOULD NOT matter whether you live there or not. Heck, I have a multi car-multi driver discount with my mom, and I don't live there anymore. But don't tell anyone.

[Mr 5 0]

Insurance law is different with every state.

You don't tell us what state your in and that's a critical piece of information.

If you're in a 'FAP' state it's one situation, if you're in a 'PAP' state it changes. FAP means Family Auto Policy, PAP stands for Personal Auto Policy.

I think you'll need to take out the Progressive policy, first, then drop yourself from your parents policy, if you're in a FAP state (check the front of the actual insurance policy, it should state what type it is).

When you call to drop yourself off your parents policy, Grange will ask if you have youur own insurance and you just have to say 'yes' and give them the policy number, then your parents policy will stay valid and they won't be dropped.

Physical damage coverage follows the car, not the driver. If I drive your car and have an accident, your insurance pays for the damage to the car but my insurance company (assuming I'm insured, of course) pays the liability portion of the accident claim (if any).

Bottom line: Take out the Progressive policy THEN drop the Grange coverage. That should do it...ask your agent (at Progressive).

[95ragtop]

As Mr 5 0 said, it is state dependent.

I was a licenced insurance solicitor(worked for broker), and in Calif all drivers in a household need to be on all policies unless specifically excluded. If you have your own car and your own insurance, you can generally be excluded from the parents policy.

In Cali, both the liability and the comp/coll follow the car first, then the driver.

What state are you in???

[Coupe Devil]

OK more info for ya. Im in Kentucky. age : 23. one wreck that cost $1700 to repair. ended up costing me almost 4 grand.. Taking the amount for the premium before the accident and what it is now. The money difference per month all totalled comes to $3960 over a three year period. Thanks for the responces, got any more ideas?

Bradley

[venumus93]

I am a claims adjuster(stop swearing at me, everybody! it's a living! ..) and I agree that you should contact Progressvie to ask about your specifc state laws. Here in FL, you can take out your own policy while living with someone else, & then drop yourself off your parent's policy, having them list you as an excluded driver, which means basically any loss you are in while drivign your parents cars would not pay for their vehicle's damages at all. So, if you do this, do not drive their cars at all.
lastly, if you change to Progressive, try to stay with them as long as you can. Ins co's make a profit after 7 years on average & it is then you can start getting some discounts on your policy...they like to take care of their long-term policyholders.
Good luck & let us know what they tell you!
Later!

Sean

[Mr 5 0]

Bradley:

venumus93 is correct; you should be able to get an 'exclusion' from your parents policy once you have your own, thus not affecting their policy or coverage. Sounds like your Grange agent was trying to keep you on the policy for the big extra premiums you pay. Can't blame him and he was half-right.

If you just drop off your parents policy without having proof of your own personal insurance policy your parents could be dropped, since you live in the household and would have access to their vehicles - but would have no legal coverage. Unfortunately for the Grange, as a household member, you would still be covered by your parents policy anyway, without paying, and this is why The Grange would want to drop them.

In effect, you would get 'free' insurance while Grange would be liable for any losses stemming from an accident you may have.

The accident and your age hurts, as you well know, but Progressive is famous as a 'high-risk' insurer that has only recently begun to branch out to the general driving public.

If they can give you a better premium go for it but don't try to 'hide' the accident. They'll find out (it's easily available information that all insurance companies have access to) and won't consider you then, in some cases. Progressive's quote of almost 1/3 less than Grange is a bit hard to believe but if you gave them all the facts and they still quote you $1502., go for it, just have a policy # first before you drop off the parent's policy.

[Coupe Devil]

Thasnk guys.. I didn't hide the accident at all. It wil lgo off the record in April of 2003 assuming that it only stays there for the three years I was told it would. SO, I am going to call tommorrow and talk to a real Progressive agant and not use the internet quote thingy.. and tell them my situation.. Maybe I'l lbe able to get it dropped considerably.. This high insurance payment is the only thing keeping me living in my parents house still. If I get the new insurance through progressive, I wil lbe saving a little over $100 a month just on my truck insurance. Then hopefully ( AND IVE BEEN PRAYIN ) I'll get a raise this month as Im up for evaluation at work

Thanks
Bradley

[Crazy Horse GT]

well in tn. im covered to drive my car, odie is considered a 10 percent driver, but anyone else cant drive my car, suck's huh?, but it's my excuse for no one else to drive ol crazy, heheh.