Claims and Undisclosed Drivers

[khang.mis]

How do insurance companies usually handle claims in instances where the driver is an undisclosed household member? I am trying to lower my loss ratios and I'm not 100% sure where my losses are coming from.

 

[USF3983]

Some of our companies do driver discoveries and require proof to remove drivers.

Usually it's up to me to be clear with the insured that it is possible to have their claim denied if they misrepresent on their application. Mid-term is more difficult in that regard I guess but I still am somewhat vigilant in acquiring this information.

 

[khang.mis]

I try to exclude too. My question is whether Insurance companies pay out claims caused by undisclosed drivers?

 

[Sales71]

I try to exclude too. My question is whether Insurance companies pay out claims caused by undisclosed drivers?

Call your company and ask them since this is a very general claim question. What company do you work for??

 

[khang.mis]

I'm a nonstandard broker, and my companies state that they don't pay out claims made from undisclosed drivers. What I cannot wrap my head around is how my loss ratios are so freaking high, my customers do their very best never to mention their children 16 and up.

Btw a huge portion of my clientelle are undocumented immigrants.

 

[USF3983]

There's your problem. Undocumented workers probably isn't your best clientelle. Probably a lot of 'soft' fraud. Little fender benders, big back pain.

 

[khang.mis]

Well what really bothers me is that my nonstandard carriers who target this market are complaining and terminating my appointments due to high losses. I dn't understand how I could underwrite these policies better, it's frustrating dammit!

 

[USF3983]

There has to be some level of underwriting at your level. The factors that I believe our non-standard companies target are bad credit, below average driving history, and no prior insurance to name a few.

There isn't a specific demographic that we are told to target. In fact, we've been told to watch out for a specific demographic, similar to the one you target. Fresh of the boat immigrants are an easy target for fraud rings because they speak very little English and aren't aware of the situation they are being put into. That's the case here in Florida anyway with PIP fraud.

 

[F150]

you know what is awesome, is seeing the rate after the undisclosed driver is added along with the at fault accident....

 

[khang.mis]

So its a toss up whether these claims by undisclosed children will be covered? That is probably what's ruining my loss ratios