Is it legal for an insurance company to put points on a car that wasn’t involved in a wreck?

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Is it legal for an insurance company to put points on a car that wasn’t involved in a wreck?

I was in a wreck and gained insurance points. 1 year later my dad got a new car and the insurance company put the points on his more expensive car. Are they legally allowed to do that?

Asked on December 11, 2016 under Insurance Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If you are on your father's insurance policy, and/or are a member of his household (live with him, so that presumably you have access to his car[s]), then they can adjust his risk and his rates based on your accident, because you are a driver. They could also do this if were not on his policy or living with him when you had the accident, but were driving his car, since a car's owner is accountable for the actions of the people whom he lets driver his cars. In all these scenarios, the adjustment would apply even to a new or different car.
If you don't live with him, are not on his policy, have your own insurance policy, and were not driving his car for the accident, then they should not penalize him.


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