Auto Insurance Exclusion Costs Couple Thousands

An Illinois couple is suing their insurance agent for failing to provide coverage for the husband due to an erroneous auto insurance exclusion. The suit maintains that, when the couple married, their agent failed to rectify the auto insurance exclusion that kept him from receiving coverage on his wife’s policy. The husband was involved in a rear-end collision shortly after their marriage and was not covered, costing the couple thousands of dollars in damages.

Details of the Auto Insurance Exclusion Lawsuit

The auto insurance exclusion lawsuit was reported in an Illinois newspaper. The report uses the pseudonyms “Richard” and “Sylvia” for the couple filing the auto insurance exclusion lawsuit against the agent, “Ted,” and the carrier, “Big Insurance.” When the couple married in 2012, they met with Ted to revise their coverage. Although Ted added Richard to Sylvia’s homeowners insurance policy, he neglected to inform them that he should also be added to the auto insurance coverage.

Auto Insurance Exclusion Dates Back to 2010

The original auto insurance exclusion came while Richard and Sylvia were engaged in 2010. Sylvia considered placing Richard on all of her policies, in her words, “to take advantage of the various discounts.” Richard had his own policy under a different carrier, but drove an older car and had two speeding tickets on his record. Ted recommended that Sylvia maintain the auto insurance exclusion on Richard to keep her own rates lower, but said that he could be added to her coverage later.

Accident Magnifies Auto Insurance Exclusion Consequences

Shortly after their marriage, Richard sold his car and started driving Sylvia’s vehicle. The auto insurance exclusion meant that any damages from an accident involving Richard would not be covered. Last month, Richard was involved in a rear-end collision that included four vehicles. When they reported the accident to Big Insurance, they were informed that the carrier would not honor the claim due to the auto insurance exclusion on Richard.

Auto Insurance Exclusion and Negligence

The couple had two meetings with Ted after their marriage to discuss changing their coverage. Their lawsuit maintains that Ted failed to bring up the auto insurance exclusion either time. The suit claims that the agent was negligent for failing to bring up the auto insurance exclusion during those meetings. Insurance experts interviewed for the report agreed that the agent should have mentioned the exclusion and its impact on their insurance rates.

Source: Hanford Sentinel

Get Answers For Your Auto Insurance Lawsuit Questions

To find out how we can answer your questions about auto insurance lawsuits, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your auto insurance lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.