Playing The Claim Blame Game

(I work for an independent insurance agent. I have one customer that for years has “forgotten” to add her son as a driver to her policy. He then proceeds to have several claims without being listed. This family cost the company $17,000 in claims, most of it happening when he was driving. He comes in one day for help with yet another accident; this one isn’t legally his fault. I’m fairly certain that he contributed to it, but legally, it’s not his fault.)

Me: “I’m glad you’re here! I need your driver’s license number. The company is asking for us to add you to your mom’s policy.”

Son: “Okay.”

(He has a blank look, and hands me his driver’s license. I help him file the claim. He’s fairly certain it’s a total loss. I call his mother.)

Me: “Hi, [Customer], I saw [Son] today and I helped him file a claim on someone’s policy. The company wants us to add your son or exclude him because he obviously owns and drives the pickup on the policy. Let me see what that’s going to cost.”

Customer: “Now, wait a minute; that’s going to cost too much! I can’t pay it.”

Me: *expecting this* “Well, they’re going to non-renew you if you don’t.”

Customer: “Can’t you just move me to another company?”

Me: “Only if we add or exclude [Son]. I know he drives your car and I know he owns the pickup. If I lie on your application it’s a violation of our contract with the carrier and you lying on your application voids your contract and means they don’t have to pay claims.”

Customer: “Well, that’s just ridiculous! How am I supposed to afford these things?”

Me: “Maybe you and [Son] should find him a pickup he can pay cash for and only carry liability?”

Customer: “He works very hard; he deserves a nice vehicle!”

Me: “That’s true, but if you can’t afford the insurance on a vehicle it’s a good idea to not have to work to support a car. Especially at that age. It’s just too hard.”

(He’s 22 with a toddler and a fiancé. He’s no baby.)

Customer: “Are you saying he doesn’t deserve it?”

Me: “No, ma’am. I’m saying when I was that age and my insurance cost my parents a lot because I got into two little wrecks they made sure I only needed liability so our family could afford it. I was working through college. Insurance was the only thing I’d let them pay and I was living on my own. It was just more practical.”

Customer: “Well, I know other families who don’t list their kids on their insurance.”

Me: “It’s not right when they do it either. They get caught and have to do the same thing.”

Customer: “Well, I’ll just find another insurance.”

Me: “You do whatever you have to do. I’m going to have to write his new vehicle on his own policy with his real address and his girlfriend listed on it if we write him. I can’t do it any other way. If you don’t want to pay for him on yours you’ll have to exclude him.”

(Unfortunately, she did not find another insurance company.)