I am an insurance agent. My insured is with Peerless Ins. Their son who lives with them has GEICO. He backed into their car. He submitted the claim to GEICO. They denied the claim stating that the policy does Not cover Family members Autos. I sent a letter to the insurance dept and they stated that there was nothing that they can do since it is written into the contract. This is nonsense. All of the insurance companies I do business with would pay this claim.
Montag, let me make this more clear. You said you do business with Peerless. You said they would pay that type of claim even though it's not in the written contract. You basically implied that Peerless would pay for something that wasn't in a contract. I asked you why you do business with companies that don't honor written contracts.
I'd rather do business with Geico and read my contract and understand my coverage. Did your son even look at the policy when he agreed to it it? Geico makes a ton of money off people who never glance at what they're paying for. I love that Berkshire owns a company like that.
The son should have been more careful,plus I would bet big money that Geico has a provision in thei policy that excludes claims from family members as it should.Thats just commen sence and good insurance underwritting.
Careful has nothing to do with it. Thats way there called accidents. If he backed into your car his policy will pay for your damages. You purchase insurance for piece of mind. You assume that your premium payment of $1800 a year will cover this type of loss. I have seen this type of claim before with other insurance companies that I write for. None of them ever denied this type of claim.
Then I would ask you - why are you doing business with companies that don't honor written contracts?
On top of that, your story didn't really make sense because you left out so many details that would be important to the insurance company.
I am not doing business with GEICO. THey do not use independent agents. My insured is insured with the Peerless Ins. Co.. The son is insured with GEICO who has denied the claim. Peerless can pay my insured under his collision and subrogate against GEICO who whould then deny Peerless. Peerless would then subrogate against the son who would then have to pay out of his pocket. Thats the reason why we tried to have the Insurance Dept force GEICO to pay the claim. I hope that answers your question.