Received a letter in the mail today stating:
“We are sorry we will be unable to continue providing Voluntary limits of liability on the above Personal Automobile Policy.-
-Your liability limits will remain in force under this policy; however, these coverages will be reinsured through the North Carolina Reinsurance Facility subject to the limits provided for under Reinsurance Facility rules. If your current limits exceed the maximum allowable under Reinsurance Facility rules, they will be reduced.”
The new NCRF policy limits that will come into effect when my renewal for my current policy is due in December are the same as the coverage limits that I currently have with my auto insurance provider.
It is stated in the letter that this action was taken due to the driving record of my brother. He isn’t on my policy, and isn’t listed as an operator of my vehicle. The only ties I see us having in the insurance company’s eyes is that we live at the same address and we shared an auto policy with the rest of my family 10 months ago. Since then I’ve gotten my own policy that I share with my girlfriend, and we both have perfect driving records. I initially don’t feel like this fair reasoning, but may be uneducated on something…
I’m going to reach out to my insurance agent next business day, but seeing as it is Saturday, I wanted to see if I can receive any input or advice before I talk to them.
What exactly is this letter stating? What are my next steps besides reaching out to my insurance agent? Anyone else have experience with this…?
NC Auto Insurance Ceeded?
byu/Objective_Sink_5392 inInsurance
Posted by Objective_Sink_5392
2 Comments
All licensed drivers in the same household must be listed on each policy in that household. Your sisters and brothers, parents and children must be listed if they are in the same household.
It’s saying that, because of your brother’s driving record and the fact that you live in the same household, your policy is essentially being moved to the “non-preferred” group. Your cost is going to go up. A lot.
Unless your brother moves out, there’s not much you can do about this. You could ask about having him specifically excluded from your policy, but that’s a big risk. If he ever drove your car, even in an emergency, there would be no coverage. If he caused an accident, you could be sued.