*****"Your supposed to switch companies when you SAVE money, not the other way around"******
Customer comes in to cancel her Insurance policy she purchased last week. When I asked why, she tells me her step mom added her to their policy. I asked if she lived with her step mom and she says 'No".
Me: Okay. Im going to process the cancellation but you should know that what your parents are doing is against the rules of your moms ins policy and there is a chance that if you have an accident, your moms policy more than likely will not pay to fix your car or the damage you cause to others because of missrepresentation of facts (only people that actually LIVE in the household are supposed to be listed as covered vehicles and insureds. The company can claim fraud based on the multi car discount they give to the extra car).
She: I understand what your saying, but my moms agent already put me on there so its okay.
Me: Yes. But that doesnt mean your in the clear. Proof of insurability is at the time of the claim (accident), not at the time of purchase. What that means is the agent takes in good faith that your doing the right, ethical thing but when there is an acident, the police comes, files a report. On that report it will list you as the driver & your address. When the company sees that your address doesnt match their insureds address( moms) they will investigate why you are on that policy and that is grounds for denial of the claim even tho you have been paying your premiums.
She: Okay. So your saying I should change my INDIANA drivers license to her address in KY?
She: My step mom lives in Sheperdsville.
Me: (full ghetto comes out,..i mean why not, shes not a customer anymore anyways).... Your shitting me, right?
She: No, lol. She didnt like the $200 monthly rate I was quoted here for my car so she put me on her policy.
Me: I totally understand the frustration of paying alot for car ins but your young & you bought a nice, newer car. That said; Does she realize that not only is she insuring a Indiana resident on a KY ins policy (totally against rules), but Ky is a "no fault" state which means because of guidlines of mandatory coverages over there, the Ky premiums normally run about twice as much cost as it does in the state of Indiana....meaning your premium over there should now be around $400 a month? Basically your now paying $400 a month for a policy you think will cover you in a wreck, but it wont because at that point, they will catch what your doing.
She: Im only going to do this for a couple months until I get caught up on my bills
Me. "I see your point" ( No I dont- wink)