Can auto insurance be denied if....
- Thread starter Vern_in_IL
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Originally Posted by Donald
You can also ignore the annual questionnaire and they will still insure you.
That is correct, atleast with my insurance. I had to fill out one of those and due to the mail around here (they never got it) I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket. I just went down to the agent and showed them in person.
You can also ignore the annual questionnaire and they will still insure you.
That is correct, atleast with my insurance. I had to fill out one of those and due to the mail around here (they never got it) I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket. I just went down to the agent and showed them in person.
This happened a long time ago, but I remember a coworker having issues for underreporting her mileage. She used the train to commute to downtown Chicago and lived within walking distance of the train station in her town so she only drove to run errands or on weekends. She had enough of the train and started driving downtown but never informed her insurance company. She got into an accident and got a lot of flack when the company found out that her car's mileage was well over what they consider "low mileage driving". They didn't deny the claim, but they put her into a different bracket based on her mileage and I think they retro-actively billed her for a year's worth of the discount she received for claiming to be a low-mileage driver.
Only your policy can give a definite answer about denying claims.
My guess is that mileage figures into the premium. Like MasterSolenoid said, State Farm gives a discount for 7500 miles or fewer per year. Their only other mileage category is more than 7500. (For business vehicles, the cutoff is 12,000.)
I have gotten mail from SF periodically asking me to report mileage, probably so they can make sure I'm still eligible for the discount.
My guess is that mileage figures into the premium. Like MasterSolenoid said, State Farm gives a discount for 7500 miles or fewer per year. Their only other mileage category is more than 7500. (For business vehicles, the cutoff is 12,000.)
I have gotten mail from SF periodically asking me to report mileage, probably so they can make sure I'm still eligible for the discount.
Originally Posted by Delta
I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket.
I have never, ever been asked the mileage.
They asked for a "Guesstimate" but they never make any attempt to verify it.
I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket.
I have never, ever been asked the mileage.
They asked for a "Guesstimate" but they never make any attempt to verify it.
Originally Posted by Linctex
Originally Posted by Delta
I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket.
I have never, ever been asked the mileage.
They asked for a "Guesstimate" but they never make any attempt to verify it.
My company stopped asking for verification on the Ranger.
The Cobalt tattles on itself via OnStar. The savings I'm getting due to that more than offsets the cost of the OnStar subscription, and they do check that. I had one year where I didn't drive the car often enough to regularly trigger the diagnostic report that they use and not only did I get a call from my agent asking to verify my mileage, but they also opened a trouble ticket with OnStar, who then contacted me to troubleshoot the issue.
Originally Posted by Delta
I got a 3rd letter stating if they did not receive my mileage statement they would move it to the next bracket.
I have never, ever been asked the mileage.
They asked for a "Guesstimate" but they never make any attempt to verify it.
My company stopped asking for verification on the Ranger.
The Cobalt tattles on itself via OnStar. The savings I'm getting due to that more than offsets the cost of the OnStar subscription, and they do check that. I had one year where I didn't drive the car often enough to regularly trigger the diagnostic report that they use and not only did I get a call from my agent asking to verify my mileage, but they also opened a trouble ticket with OnStar, who then contacted me to troubleshoot the issue.
Originally Posted by Vern_in_IL
My agent asked me how many miles I drive annually, so if I have the car 4 years fully insured, and total it, if my mileage is over my estimate I gave them, can they deny my claim?
Read the policy. But If it is so wrong as to amount to a knowingly and / or materially false statement on the application, then I suspect the answer is yes, but a more plausible scenario is that the insurer would go back and retroactively adjust the premium to what it should have been, had the application been completed correctly.
Your state law may also have rules on this.
I have had to provide odometer readings for cars I rarely drive that have a somewhat reduced premium; I usually just send them a picture of the odometer.
My agent asked me how many miles I drive annually, so if I have the car 4 years fully insured, and total it, if my mileage is over my estimate I gave them, can they deny my claim?
Read the policy. But If it is so wrong as to amount to a knowingly and / or materially false statement on the application, then I suspect the answer is yes, but a more plausible scenario is that the insurer would go back and retroactively adjust the premium to what it should have been, had the application been completed correctly.
Your state law may also have rules on this.
I have had to provide odometer readings for cars I rarely drive that have a somewhat reduced premium; I usually just send them a picture of the odometer.
Originally Posted by Vern_in_IL
My agent asked me how many miles I drive annually, so if I have the car 4 years fully insured, and total it, if my mileage is over my estimate I gave them, can they deny my claim?
I'm in the same situation and I think they can and will deny the claim. More miles means more risk that is disproportionate to the premium you're paying.
My agent asked me how many miles I drive annually, so if I have the car 4 years fully insured, and total it, if my mileage is over my estimate I gave them, can they deny my claim?
I'm in the same situation and I think they can and will deny the claim. More miles means more risk that is disproportionate to the premium you're paying.
Triple_Se7en
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If you can afford to have the luxury of an Onstar Subscription on your outdated Cobalt, then there's other things in life you are unnecessarily splurging on also. So just pay whatever premium your insurance asks. For you have too much money burning holes in your pockets already.
Originally Posted by opus1
My company stopped asking for verification on the Ranger.
The Cobalt tattles on itself via OnStar. The savings I'm getting due to that more than offsets the cost of the OnStar subscription, and they do check that. I had one year where I didn't drive the car often enough to regularly trigger the diagnostic report that they use and not only did I get a call from my agent asking to verify my mileage, but they also opened a trouble ticket with OnStar, who then contacted me to troubleshoot the issue.
Wow. When I reviewed my OnStar subscription, I called my insurance company (USAA) and asked the amount of discount for the service. It turned out to be much less than one month's of OnStar cost for the 6 month policy. I cancelled OnStar.
My company stopped asking for verification on the Ranger.
The Cobalt tattles on itself via OnStar. The savings I'm getting due to that more than offsets the cost of the OnStar subscription, and they do check that. I had one year where I didn't drive the car often enough to regularly trigger the diagnostic report that they use and not only did I get a call from my agent asking to verify my mileage, but they also opened a trouble ticket with OnStar, who then contacted me to troubleshoot the issue.
Wow. When I reviewed my OnStar subscription, I called my insurance company (USAA) and asked the amount of discount for the service. It turned out to be much less than one month's of OnStar cost for the 6 month policy. I cancelled OnStar.
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I'm with State Farm and I list mileage use @ 10k per year for all my vehucles. I've had 2 cars totaled and 1 claim under comprehensive and mileage was never an issue. I put 50k an year roughly on my cars.
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