Auto Insurance Question

[GrtArtiste]

At dinner yesterday the discussion turned to the antics of a recently departed rellie. I did not know that when he moved his family from OH to MI back in the 80’s that he intentionally did not buy MI license plates for any of his vehicles/trailers/RVs that required such….and he had several. The stated reason was that he wanted to see how long it would be before he got caught using his expired OH tags. The answer to that question is over 9 years. Of course, when he did get caught he had to paid huge fines/penalties..but that’s another story. My concern is this: I do not know if he bothered to buy auto insurance but even if he did, can the Insurance Co. refuse to pay a claim if the vehicle in question is not licensed? I understand the answer could vary by state, but I’d be interested in hearing any replies. Thanks.

GrtArtiste

 

[supton]

I would think the ins co would not care. I guess they could try to weasel out, but technically the bill was paid. Unless if there was accident in which the vehicle was deemed unsafe and should have been found by appropriate state safety inspection.

 

[SatinSilver]

If it was damaged in the garage or while sitting at a residence then insurance would probably cover it. However, if it was involved in a traffic accident then possibly not since legally it has to be registered to be operated on public roads. The law requires one to have clean hands in the transaction. Which is why drug dealer don't report to the authorities when they get robbed.

 

[DuckRyder]

Originally Posted By: GrtArtiste
..., can the Insurance Co. refuse to pay a claim if the vehicle in question is not licensed? I understand the answer could vary by state, but I’d be interested in hearing any replies. Thanks.

GrtArtiste


Probably not.

Edit: though if he failed to disclose his residence in MI vs OH that may be grounds for rescinding the policy for misrepresentation

 

[simple_gifts]

Originally Posted By: DuckRyder
Originally Posted By: GrtArtiste
..., can the Insurance Co. refuse to pay a claim if the vehicle in question is not licensed? I understand the answer could vary by state, but I’d be interested in hearing any replies. Thanks.

GrtArtiste


Probably not.

Edit: though if he failed to disclose his residence in MI vs OH that may be grounds for rescinding the policy for misrepresentation


Residence also impacts one's insurance rates so it could be construed as fraud.

 

[bioburner]

Some insurance companies cannot operate in all states.

 

[eljefino]

Originally Posted By: DuckRyder
Originally Posted By: GrtArtiste
..., can the Insurance Co. refuse to pay a claim if the vehicle in question is not licensed? I understand the answer could vary by state, but I’d be interested in hearing any replies. Thanks.

GrtArtiste


Probably not.

Edit: though if he failed to disclose his residence in MI vs OH that may be grounds for rescinding the policy for misrepresentation


This x1000

My policy reads that my address where I regularly garage my vehicle is XXXXX

and it also reads that if I lie *to make my bill cheaper* I won't be covered.

PS, 9 years, what a maroon. He should have played the derp derp card when busted and started over with the correct plates. How would they know?

 

[Donald]

I would think if he did something to commit fraud they might not pay. So not swapping plates for a few months might be forgetfulness. But 8 years is more than forgetfulness.

 

[jimbrewer]

Let's be very clear: Lying about your place of residence, definitely can get you voided. That's different from having lapsed registration. Presenting a falsified driver's license in some way, assuming you could practically do that, of course, would too.

This is just a guess, but think about it. Any number of vehicles are unregistered or improperly registered. People forget. Not for nine years, but they forget. Sometimes it's ambiguous just where a person is domiciled. Does your insurance company just get to launch an investigation and then thumb its nose at the guy you ran into? I doubt it.

You think all of those RVs with Montana plates (a tax scam) are effectively uninsured?

Remember, the insurance company has the ability to easily check whether the car is registered just as they can check on the rest of your driving record. They would if they thought it was important.

 

[SeaJay]

If the premium was paid, the insurer would more than likely be responsible to pay the claim. The drivers policy would be canceled soon after.

 

[RhondaHonda]

Michigan has some of, if not the highest insurance rates in the country. He probably thought he could keep an Ohio insurance premium on his vehicles if he never changed to Michigan registration. The insurance company likely would not care if you had a claim on expired registration but if you are trying to commit rate-evasion by using a different garaging address they may not pay or make you pay the correct back premium based on the garaging address before affording coverage. Obviously that would add up over 9 years.

 

[eljefino]

Well and the insurance company could balk at paying, then say, well you can't sue us under Ohio law, because you're not an Ohio resident. Then Michigan's insurance regulators would say, hey, why bother with this guy?

So then one is left trying to sue their own insurance company to compel them to cover against the printing in the policy. Not a great place to be.