Auto insurance can kick me out because i had an accident?
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UPDATED: Nov 10, 2011
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Insurance Question from Davie, FL
Asked on 11/10/2011
Auto insurance can kick me out because i had an accident? I Had geico insurance for many years, never had an accident.For the past couple month i have totaled two cars, one was involve in an accident my grandpas car wich the valued was 1200 dollars thats what they paid to us. and the other one got burned by an electrical failure.Geico called me sayin that they are not iterested to renew my policy..My question is:So why i pay insurance all this years if the fiirst problem i have they kick me out? is that legal? thats why you pay insurance right? but if you dont have an accident theyre happy and dont say nothing, i think thats soo wrong! I
Answer given on November 12, 2011
Each auto insurance company has its own underwriting procedures and they review losses for a particular policy based on those procedures. Your accident with your grandfather’s car should have been paid under his insurance, not yours, since insurance follows the car, not the driver. The accident would be reflected in your rates, but not the payout. If there was bodily injury, that would increase the risk, and premium even more.The second loss, the fire, is paid under the comprehensive coverage and is generally not held against a policyholder. If you have an agent, you should speak to the agent to see why Geico is making this decision. It may be that you have tickets in addition to the accident that makes your risk unacceptable. If you don’t have an agent, call Geico directly and try to get an explanation as to their decision to nonrenew your insurance. If there is nothing more than the accident you might want to contact the Dept of Insurance to see if they can assist you in resolving this.
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