Auto Policy Differences

kongsmasher

Expert
52
Anyone see any real difference between actual policies?
Examples:
1. Safeco and Farmers appear to be pretty much the same.
2. Bristol west has an exclusion where non- listed drivers are only covered at state minimum regardless of what the policy owner purchased.
 
Anyone see any real difference between actual policies?
Examples:
1. Safeco and Farmers appear to be pretty much the same.
2. Bristol west has an exclusion where non- listed drivers are only covered at state minimum regardless of what the policy owner purchased.

read deeper into the policies
 
#2 may be illegal in some states, e.g., Louisiana where it is prohibited by statute.

As for differences among policies, here is a list of examples:

  • Policy doesn't cover undisclosed household residents (boomerang kids anyone?)
  • Policy excludes collision coverage for unlisted drivers who have been residents of the household for over 30 days
  • Policy doesn't cover parents while driving a resident family member's auto insured on another policy
  • Policy has a dollar limit for collision/comp claims
  • Policy excludes ANY business use (make a trip to Staples for your employer and have an accident?)
  • Policy excludes business use of nonowned autos
  • Policy excludes business use of nonowned pickups and vans
  • Policy excludes ANY nonowned autos
  • Policy excludes nonowned autos over 10,000 lbs. GVW
  • Policy has no liability coverage for nonowned U-Haul type trucks, motor homes, etc.
  • Policy excludes rental cars
  • Policy covers rental cars only by special endorsement
  • Medical payments coverage applies only to licensed physician expenses
  • Policy excludes pizza and other types of delivery
  • No coverage for theft without evidence of forced entry
  • Policy excludes losses involving "criminal acts" (like speeding?)
  • Policy excludes custome equipment/electronics with no options to endorse coverage
  • Liability coverage only applies to direct physical damage to property, not indirect loss
  • Duty to defend has significant restrictions
Anyone who is shopping solely on price likely has no idea what they're getting (or not getting) for their premium.
 
#2 may be illegal in some states, e.g., Louisiana where it is prohibited by statute.

As for differences among policies, here is a list of examples:

  • Policy doesn't cover undisclosed household residents (boomerang kids anyone?)
  • Policy excludes collision coverage for unlisted drivers who have been residents of the household for over 30 days
  • Policy doesn't cover parents while driving a resident family member's auto insured on another policy
  • Policy has a dollar limit for collision/comp claims
  • Policy excludes ANY business use (make a trip to Staples for your employer and have an accident?)
  • Policy excludes business use of nonowned autos
  • Policy excludes business use of nonowned pickups and vans
  • Policy excludes ANY nonowned autos
  • Policy excludes nonowned autos over 10,000 lbs. GVW
  • Policy has no liability coverage for nonowned U-Haul type trucks, motor homes, etc.
  • Policy excludes rental cars
  • Policy covers rental cars only by special endorsement
  • Medical payments coverage applies only to licensed physician expenses
  • Policy excludes pizza and other types of delivery
  • No coverage for theft without evidence of forced entry
  • Policy excludes losses involving "criminal acts" (like speeding?)
  • Policy excludes custome equipment/electronics with no options to endorse coverage
  • Liability coverage only applies to direct physical damage to property, not indirect loss
  • Duty to defend has significant restrictions
Anyone who is shopping solely on price likely has no idea what they're getting (or not getting) for their premium.

You've got my vote for 'post of the year'.
 
Just came across another example recently. The "ISO standard" personal auto policy covers sales tax. If your car is totaled and you have to buy another one, you'll be paying sales tax. Some very well known insurers don't cover it. This came up in a claim with one of those insurers where the insured had to swallow $3,000 in sales tax in addition to a sizeable deductible. One of this insurer's sales pitches is, "SAME COVERAGE, Better Price." To quote Jacob McCandles, "Not hardly."
 
2. Bristol west has an exclusion where non- listed drivers are only covered at state minimum regardless of what the policy owner purchased.

I've seen this a lot actually. I've also seen clauses where an accident by non-listed driver will be covered to policy limits for liability only, and where it gives carriers options to void or rescind the policy.
 
As long as it doesn't violate public policy insurance companies are free to stipulate whatever policy language they wish, That's why you can't compare insurance based on price.

When insurance agents begin to educate their policyholders of this very fact, they May well limit their losses to companies like Geico.
 
Just came across another example recently. The "ISO standard" personal auto policy covers sales tax. If your car is totaled and you have to buy another one, you'll be paying sales tax. Some very well known insurers don't cover it. This came up in a claim with one of those insurers where the insured had to swallow $3,000 in sales tax in addition to a sizeable deductible. One of this insurer's sales pitches is, "SAME COVERAGE, Better Price." To quote Jacob McCandles, "Not hardly."


What company are you talking about?
 

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