Is this the norm for new car insurance policies?

[Mighty Favog]

About a year ago I decided to price car insurance with some other companies just to see what's out there. I'm happy with who I have but I just wanted to make SURE I'm happy with who I have. I've had the same policy for 21-years (Nationwide).

 

I only had time to call one other company to get a quote. The man on the other end of the phone would not give me a quote unless they could insure ALL the people in my house. I told him my wife has her own policy that she's had for over 30-years and she's happy with them (State Farm). But he just would not give me a quote without her vitals and personal info. My wife isn't even on my policy as a second driver (she refuses to drive my car anyway because it's so pristine).

 

A very good and long time friend of mine had an even more gut wrenching experience. His insurance company not only insists that he insure everyone in his house (even though they have separate policies) but even his son that DOESN'T live with him. The son is over 21-years old, has lived on his own since he was 19 and has even lived with his mother (parents divorced) since he was 17. The same friend's second wife has a 16-year old daughter (different father and supported by her mother) that he has to insure too!! BTW - the friend's deductible is something like $3,500.

 

So, are there any policy writers here that can explain why all this is??

Edited August 28, 2015 by Mighty Favog

[Max2]

Its a little unusual for a husband and wife to have separate Auto policies without unique circumstances.   You get multi car, multi driver and home policy and/or renters discounts when you pair them all with one company which saves a good bit of money. 

 

Everyone living of the age to drive in a home must either be on an Auto policy listed as a driver whether primary or occasional. If you have the same amount of vehicles as you do licensed drivers in the house, well everyone has to be a primary driver because the companies know that a spare vehicle will be there to drive while mom and dad are at work.  If you have an individual driving your vehicle, living in your, home that is not listed as a driver, companies have a problem with that because they are not rated and listed on the policy. If an individual has coverage on their own vehicle, but has to borrow yours for a infrequent purpose, well that is fine, but them living with and having relation with you is a different story. Remember, insurance always follows the vehicle in case you loan your ride out. If they crash, its on your policy, not theirs. Young adults (or your children) living outside the home permanently don't have to be listed, but if they are just away at school, they have to be listed as occasional drivers.   Most companies will always give you the option to exclude a driver living with you whether tickets, accidents, DUI's, etc. come into play, but if they drive you ride and have an accident, you're on your own.

 

 

Check out the minimum liability coverage per state.  Its pretty pathetic and shows why everyone should have under insured coverage and uninsured coverage.

 

 

http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

Edited August 28, 2015 by Max2

[Speakerfritz]

in NY you can have seperate policies as long as everyone is on a policy and at least 1 person has a lease or new car, and at least 1 person only needs liability.

 

so lets say

 

dad has a truck with no loan - does not needs full coverage

 

mom  has a lease and needs full coverage at leasing company specified rates

 

 

then both can have seperate policies

 

but

 

if you have mom, dad, children living with you and vehciles are shared...then your going to have to get the master policy.

 

be advised...its rare when a senior policy holder like you will benifet from swapping polices.....theres accident forgiveness factors that come to play with a senior policy holder that a new policy holder cant get.

[Islander]

Some insurance companies in Canada refused to ensure motorcycles unless the owner also had car or home insurance with them.  This is called "tied selling" and is not strictly legal.

 

In the early 1990s, about 1500 motorcyclists rode together to Queen's Park, the Ontario provincial legislature, to protest, but I don't know whether the protest had any results.

 

Sportbike insurance in Ontario eventually became so expensive that sales dived, and many bike shops closed, even some that had been open for decades.

 

Here in British Columbia, there's only one company, the Insurance Corporation of British Columbia (ICBC).  It's a government-run company, so you pay the same price at any broker in town.  They get a commission, which costs you nothing.

 

Since there is no profit in the business model, rates go up or down based on the claims in the past year.  I never saw insurance rates go down when I lived back East, but it happens here sometimes.  There are also big discounts for seniors, disabled, and collectors' vehicles (over 25 years old).  I'm pretty happy with it.