Auto insurance company in Cali retroactively cancels guy's insurance, after accident

[MicroBrew]

- Guy gets into an accident. He had insurance coverage
- When he informed the insurance company, they cancelled his insurance and refused to pay the damages, saying his insurance is cancelled. They cancelled it retroactively
- Ca law says it is legal
- Insurance company says he never said he had a son living in the same house so they have the right to cancel and deny coverage.
- Guy says son is not even driving age, can't drive, was not in the vehicle at time of accident.

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San Diego man's car insurance retroactively canceled after he got in an accident

Preciado exchanged information with the other driver and reported the accident to his insurance. An adjuster then called for details about the crash and other information, asking if anybody else over the age of 14 lived with him, and he told them his daughter and son, neither of whom had a driver’s license at the time, were also residents of his home.

His insurance company, National General, later told him in a letter that, since Preciao had not named his son as an excluded driver, his policy was being rescinded, and, as a result, his claim was denied and his premium was refunded. The company did not respond to NBC 7's calls and emails about this case, citing customer privacy.

As a result, Preciado was on the hook for almost $5,000 in damages to the other vehicle.

“What does my son have to do with the accident?” Preciado asked over and over, also mentioning that “he wasn’t driving, he wasn’t with me at the time of the crash, he doesn’t drive at all since he has no license. So why name him?”

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Some Insurance companies will pull all kinds of shit and find whatever excuse they can to deny coverage.

 

[Iron Mang]

Oof, yeah insurance companies are a scam, and I work for one! I really hate how there are certain rules like this that can screw you, especially if the guy had been paying his premium on time and had been a customer for an extended period of time. If they can find any reason not to pay, they'll take it.

 

[MicroBrew]

@irish_thug

Could you do me a favor and move this thread to the Warroom. I meant to put it there. Did not realize I was in Mayberry

Thanks

 

[ssBaldy]

Why do they need to know if he has a son? It was the man himself who was driving.
In Russia insurance companies do not even have the right to ask who you live with or do you have kids, when you purchase an automobile insurance. You just fill the data who has the right to drive this vehicle you are buying insurance for. Depending on the number, experience and accident history of drivers the insurance price changes. And if your car gets in an accident and the driver was not in your insurance, you do not get coverage and get a relatively small fine. Your insurance is not cancelled, though.

Are Americans getting as fucked with insurance as they are with healthcare?

 

[Kowboy On Sherdog]

Fred Loya would have sent Oscar De la Hoya to fill the accident scene with uppercuts

 

[Pliny Pete]

Are Americans getting as fucked with insurance as they are with healthcare?

If its a business then you can be sure us Americans are getting fucked by it

 

[dirtypablo]

Why do they need to know if he has a son? It was the man himself who was driving.
In Russia insurance companies do not even have the right to ask who you live with or do you have kids, when you purchase an automobile insurance. You just fill the data who has the right to drive this vehicle you are buying insurance for. Depending on the number, experience and accident history of drivers the insurance price changes. And if your car gets in an accident and the driver was not in your insurance, you do not get coverage and get a relatively small fine. Your insurance is not cancelled, though.

Are Americans getting as fucked with insurance as they are with healthcare?

Probably in calculating his level of risk. I'm guessing people with kids are safer drivers generally, but they would also be more likely to be driving with kids in the car, which could make an accident much more expensive if you multiple people with injuries.

I have mixed feelings about this - did he intentionally and knowingly lie on some application to get a better deal, or was this some hidden question or change he had no idea he had to report?

 

[MicroBrew]

Probably in calculating his level of risk. I'm guessing people with kids are safer drivers generally, but they would also be more likely to be driving with kids in the car, which could make an accident much more expensive if you multiple people with injuries.

I have mixed feelings about this - did he intentionally and knowingly lie on some application to get a better deal, or was this some hidden question or change he had no idea he had to report?

The insurance company said the dad did not list the son as an "excluded driver", so it sounds like the insurance company was only concerned about who all would drive the vehicle.

 

[PaleMoonlight]

Probably in calculating his level of risk. I'm guessing people with kids are safer drivers generally, but they would also be more likely to be driving with kids in the car, which could make an accident much more expensive if you multiple people with injuries.

I have mixed feelings about this - did he intentionally and knowingly lie on some application to get a better deal, or was this some hidden question or change he had no idea he had to report?

I’ve never been asked if I had kids when I got car insurance. Sounds like a loophole from insurance to screw customers over.

 

[ssBaldy]

Probably in calculating his level of risk. I'm guessing people with kids are safer drivers generally, but they would also be more likely to be driving with kids in the car, which could make an accident much more expensive if you multiple people with injuries.

I have mixed feelings about this - did he intentionally and knowingly lie on some application to get a better deal, or was this some hidden question or change he had no idea he had to report?

I thought it was insurance for car repairs, and not a medical one.

 

[ssBaldy]

The insurance company said the dad did not list the son as an "excluded driver", so it sounds like the insurance company was only concerned about who all would drive the vehicle.

List the people who are allowed to drive the insured car and be done with it, the hell is an excluded driver?

 

[dirtypablo]

I thought it was insurance for car repairs, and not a medical one.

Auto insurance sometimes pays for medical costs related to vehicle accidents, although I'm guessing the details on when that's the case varies a lot in different states.

 

[dirtypablo]

I’ve never been asked if I had kids when I got car insurance. Sounds like a loophole from insurance to screw customers over.

It was just a guess, but doing a little googling it looks like it's not that uncommon for insurance companies to want that information. I agree it's probably also there to act as one of many little gotchas that insurance companies can use to get out of paying claims. The entire insurance industry is a giant scam and I hate it.

 

[MicroBrew]

List the people who are allowed to drive the insured car and be done with it, the hell is an excluded driver?

I don't know what that is, because mine and my family's car insurance does not have this requirement. Our insurance only asks who all will drive the vehicle.

 

[Alphaboy]

Then what's the point of getting insurance?

I've always thought insurance is one of the biggest scams, right there next to student loans.

 

[Iron Mang]

The insurance company said the dad did not list the son as an "excluded driver", so it sounds like the insurance company was only concerned about who all would drive the vehicle.

What it is with the Excluded driver, is that coverage is extended to a driver of age that does not live in the household. This is like when you lend your car to a friend or relative and they get in an accident. They will be covered under the insurance. But an adult that lives with you won’t be covered, unless you list them on the policy as a driver. It’s all related to risk and will cause price changes to the premium.

 

[IDGETKTFO]

Never heard of this company. This is why you should go through known car insurance companies like Progressive, Gieco, State Farm...ect. Its not worth trying to save a few bucks per month.

Imagine if this guy really injured someone else. He would be fucked. He should be glad it only cost him $5000 to realize this insurance company is a scam.
We have like $300,000 coverage per person if they are injured with Progressive.

 

[BlankaPresident]

Why do they need to know if he has a son? It was the man himself who was driving.
In Russia insurance companies do not even have the right to ask who you live with or do you have kids, when you purchase an automobile insurance. You just fill the data who has the right to drive this vehicle you are buying insurance for. Depending on the number, experience and accident history of drivers the insurance price changes. And if your car gets in an accident and the driver was not in your insurance, you do not get coverage and get a relatively small fine. Your insurance is not cancelled, though.

Are Americans getting as fucked with insurance as they are with healthcare?

Here in Brazil they just ask if you have people aged between 18-24 living with you. You don't even have to name them.

This news sound insane to me. Totally a scam.

 

[MicroBrew]

What it is with the Excluded driver, is that coverage is extended to a driver of age that does not live in the household. This is like when you lend your car to a friend or relative and they get in an accident. They will be covered under the insurance. But an adult that lives with you won’t be covered, unless you list them on the policy as a driver. It’s all related to risk and will cause price changes to the premium.

The son didn't have a license, and was not of driving age. The son was never going to drive the vehicle, so why even say he is an "excluded driver" . If the kid was a toddler would the dad need to say he is an "excluded driver".

 

[Hellowhosthat]

What a shitty PR move by the company. Good luck getting new business over the next few months.