As an insurance agent, I get a lot of requests and strange questions, which I encourage for a more clear understanding of how things work. One of the scariest of these scenarios has some long lasting implications. This one bothers me the most: “Can you just add me to my Uncle’s Policy? He has really good auto rates.” Or “That’s too expensive! My friends said they would let me go on their policy to help me save some money”.
Warning: In almost all instances your insurance rates are based on your insurance history and those who are connected to your policy number for the next 5 years. The little fender bender they just had backing out of the driveway across town that didn’t even leave a mark… that’s your problem now. And your problem for the next 5 years.
If someone is looking for cheaper rates by getting coverage on your policy you need to ask them why?
An insurance agent that is willing to set a policy up like this is risking their career and the financial wellbeing of their clients. You could be looking at a minimum, a cancellation of your policy (which could also follow you for 5 years on your history) or worse, a catastrophic financial situation when a claim is denied because someone is cheating the system and get’s caught. Getting caught cheating rates when you need the insurance is about as damaging as it can get.
There is good news! I can help and in many cases even find some savings with a proper review. An open and honest conversation with an independent agent can lead you to an affordable and sustainable configuration. I know people want to be the nice guy in situations like this but the consequences can be devastating for all parties. The nicest thing you can do is protect your friends.
On another note, is it time your kids moved on to start building their insurance history? It needs to happen at some point.
Nick Gillis – www.gillisinsuranceky.com – 859-229-6100