AppId is over the quota
Many consumers believe that their insurance coverage will always transfer over to any other drivers that happen to use their vehicle with their permission. The main reason for this common misconception is because of a commonly offered coverage that is referred to as permissive use. This coverage will extend to other drivers that are not named on the policy if they were to borrow the vehicle that is scheduled on the policy.
Permissive use coverage does have many restrictions as well. Many times companies will restrict coverage from extending to other household residents or drivers that use the vehicle on a frequent basis. The reason that insurance companies restrict coverage is primary to ensure that the proper premium is being collected for the coverage being offered.
It is important for consumers to understand that when youthful operators are added to an auto insurance policy the premium charged on the policy will increase significantly. Without these restrictions for permissive use, specifically to household residents, the insurance companies would be obligated to pay for claims that result from undisclosed youthful household resident’s use of the vehicle. If the insurance companies did restrict coverage, drivers would potentially be able to have their children operate the vehicle without paying any additional premium. If that were to happen, the additional premium needed to make up for the amount of claims being paid out, due to the higher exposure, would be pushed onto the remaining policyholders to ensure proper loss ratios.
Not all auto insurance policies offer permissive use coverage. Many policies actually will restrict coverage exclusively to the operators that are named specifically on the policy. These are commonly referred to as named driver policies.
Consumers should speak with their insurance agent to discuss the coverage that is offered by their existing policy prior to letting another person driver their vehicle.
Tidak ada komentar:
Posting Komentar