Can an insurance company cancel coverage because the car is not parked at my home every night ?

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Can an insurance company cancel coverage because the car is not parked at my home every night ?

I let my pregnant daughter use one of my 2 cars for safety and reliability reasons. The insurance company cancelled coverage on that car because it is not parked at my house every night. As a consequence, she’s driving an uninsured car.

Asked on January 21, 2017 under Insurance Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You insured your car for *your* use, not by the use by another adult who lives elsewhere. While letting your daughter borrow it once in a while for short periods (i.e. a few hours at a time) while it is still at your house would not affect your insurance, letting her take it for an extended period or regularly and park it elsewhere is a violation of the policy, since it not being used by you or kept at your home; it's again, not being used by the person you insured it for. That breach allows them to cancel What you should have done is to have added your daughter as insured driver and her home as another location; had you done that, they could not have cancelled.


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