Automobile Insurance Lafayette Louisiana
Call Jeff Davis Insurance at 337-824-4455 when you are looking for better rates on home or auto insurance in Lafayette Louisiana and the surrounding areas!
As a leading independent insurance agency in Lafayette Louisiana we can help you find great options on home, condo, mobile home, renters, business insurance, life insurance, and car insurance in Lafayette Louisiana!
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How to Avoid Claim Denials by Lafayette Louisiana Insurance Companies!
In a previous article we discussed how Stephen Tyler, a friend of Fred Johnson, wrecked Fred’s truck making a delivery to a customer. Stephens’s vehicle had broken down a few days before and Fred, being a Good Samaritan, allowed Stephen to borrow his truck.
Unfortunately no good deed is left unpunished.
A claim is submitted to Fred’s insurance company and about 5 days later the company denies his claim.
Shortly after his claim denial, Fred receives a bill from the other insurance company wanting Fred to pay for an accident he did not cause!
Why Did Fred’s Insurance Company Deny His Claim?
Fred’s car insurance policy does allow something called permissive use. In other words if you lend your vehicle to someone not listed on your insurance policy, they should (in theory) be covered by your insurance policy if they have an accident.
However when you allow another person to operate one of your cover vehicles, that permission does not supersede any other restrictions or exclusions on the personal auto policy.
Stephen was involved in an accident while delivering a pizza in Fred’s truck!
Pizza delivery unfortunately is excluded on Fred’s policy and for this reason the claim was denied!
Note How the Pizza Delivery Exclusion Is Listed in Fred’s Policy:
Bodily injury or property damage arising out of the ownership, maintenance, or use of any vehicle or trailer while being used to carry persons or property for compensation or a fee, including, but not limited to, pickup or delivery of magazines, newspapers, food, or any other products. This exclusion does not apply to shared-expense car pools;
So in this instance Stephen used Fred’s truck in a way that was prohibited by his insurance company and they rightly denied the claim!
The story went from bad to worse for Fred because Stephen did not have insurance at the time of the accident. Even if Stephen had insurance, his company may also have had a prohibition against pizza delivery.
Before Allowing Someone to Borrow Your Vehicle Ask the Following Questions:
- What will they use your vehicle for?
- Do I want to be responsible for their actions?
It would probably be an excellent idea to find out why they want to borrow your vehicle in the first place. If the person borrowing your vehicle uses it in a way your insurance company prohibits, and they cause an accident, you might be on the receiving end of a claim denial!
So before turning over your car keys to another person you have every right to ask them what they will be using the vehicle for, and you should ask unless of course you don’t mind being responsible for the actions of others!
In our next article we will discuss why it’s important to make sure the individual borrowing your vehicle has a valid license!
Automobile Insurance in Lafayette Louisiana – More Complicated Than the Price We Pay!
Insurance is complicated and that is why thousands of policyholders choose Jeff Davis Insurance to care for their insurance needs.
We offer a coverage checklist to help you discover gaps in your insurance protection.
A coverage gap might end up costing you thousands or even tens of thousands out of pocket!
Call today when you need home or automobile insurance in Lafayette Louisiana or the surrounding areas.
We can be reached directly at 337-824-4455 or use our convenient online rate quote system when you click:
- Auto Insurance Lafayette Louisiana
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