Can my car insurance provider cancel my policy....?

Question

For allowing someone who is not on my policy to drive my car? This person has only driven it once or twice and has a clean driving record and there's no reason for my insurance provider to even know about her driving my car... But I got a phone call at work the other day saying that they were considering canceling my policy because "someone saw" her driving my car... Can they cancel my policy for that reason? I mean, I know that the car wouldn't be covered if she was in an accident and I know that they could cancel it if she was in an accident in my car... But she wasn't.. So, can they cancel my policy just because "someone saw" her driving it?

The thing is, I pay a hell of a lot less with this company than I would with any other company... But they're constantly calling and asking if my daughter, who is 20 years old and hasn't lived with me for a little while now, has moved back in (Because if she does move back in, I HAVE to have her on my policy, even though she doesn't drive my car)... And at one point, when she did move in for a short time, they forced me to list her as a "non-driver" on my policy after I refused to pay extra to have her covered by my policy (because it would have cost way too much)... And I've never heard of anyone else having to do this... And then, the one time that I actually let someone drive my car, I get a phone call at work (which they know not to call me at, I work at a government job) telling me that someone saw someone else driving my car and that they're considering canceling my policy because of it.

As I saw above, this kind of thing has happened before with my insurance company... And it IS them. Yes, they have to notify you in writing IF they cancel it, but not if they're CONSIDERING canceling it... They haven't canceled it yet, they were just "warning" me that they might.

Answer 1

Something is fishy here. No, they can not cancel your policy for that reason. Someone who dislikes you has called you pretending to be the insurance company.

The insurance company would not call you. If they have a valid reason to cancel your policy, they will notify you in writing. They have to do it in writing, by law.

Maybe one of your friends thinks this is a funny joke.

Answer 2

Several questions come to mind here. First of all, is this a call from the underwriting company or the agent? They are two separate things. The agent is the one who sold you the policy, the underwriting company is who actually insures you.

For example, you might go to Joe Smith to get a policy with State Farm. Joe Smith (or Smith Insurance Agency) is the Agent, State Farm is the actual insurance company.

If the agent keeps calling, even when you say not to, I would recommend that you contact the actual company (listed on your policy) and ask that your account be changed to a different agent! Inform them that you are dissatisfied with the agent, but want to keep their company. They will switch your account, rather than lose a customer!

I doubt seriously that you are getting called by the company, you are getting called by an overbearing agent. Some agents think that they have more power than they do, and if it is a small town, you will find it can be worse.

An insurance company can choose not to renew a policy for any reason, but it is very doubtful that someone being seen driving your car can be used to cancel an existing policy!

Answer 3

simple answer Yes they can!
First thing to look at is, are we talking cancelation (seldom used) or a refusal to renew. These are two very different cases. In insureing a vehicle you sign a contract, where you agree to terms and payment in exchange for a guarentee of coverage. If you violate the terms of the contract, allowing unlicenced or under aged (per agreement often 21 or 25) to drive your vehicle, they have the right to cancel. Often people justify their actions by saying that the insurance company would not have to pay- this is simply not the case. While an insurance company could deny part of the claim (repair of your vehicle) the liability end still exists.
The terms may sound silly, but, if the agreement said there would be no cell phones in the car, and you were seen using one- the grounds are there for a cancelation.
As stated before, because the short term nature of auto insurance (usually less than a year) insurance companies often opt for the less painful (and less chance of litigation) method of refusal to renew.

Answer 4

Do you have caller ID, and what number comes up if you do. I'd suggest running the number in a reverse look up to see if it really is your insurance company calling. If you don't have caller ID, call the insurance and ask if they called. If they did (and I really doubt they did) tell them you will notify them if there are any changes to be made to the policy and you consider their behavior unacceptable.

Bottom line is, unfortunately, yes they can cancel your policy for any, or even no reason by notifying you. If they do, one of the questions the new company will ask is "Have you ever had insurance canceled?" and the yes answer will put you in a higher risk category, so if it is indeed them, I would consider switching before they cancel you.

Answer 5

I work in Insurance and I have NEVER heard of this type of stalking with an insurance co. You really should change your company, these people are Crazy! As for them cancelling your policy as someone other than yourself is driving the car, well, if you have renewed your policy, they cannot cancel you for undisclosed drivers. If the person using the car is not a member of your household, they do not need to be listed on the policy, if they live with you, they have to be on your policy. If you are in your 1st policy period, they can cancel you for an undisclosed driver, but again, this person would have to live with you in order to be considered an undisclosed member of the household that drives. You might want to report this activity to your state department of insurance as these are unacceptable practices by the company.

Answer 6

I would agree with the above..something fishy going on....Anyone can drive your car that you give permission to & that has a valid drivers license..in some cases if they have their own insurance their insurance would cover them, if not your insurance should cover it.....as for the they saw someone else drive your car thing, i don't think that would be valid unless they said I saw a girl who was drunk and falling over trying to drive your car...that would be consider one of those "ethical" things.........here is an example: i work for a company & insure my friends car and he is always going out drinking after work and driving home...I should politely warn him to stop, if he doesnt i should notify my underwriting..they may check driving records, claims history , etc...then go from there

Answer 7

NO. They can cancel your policy if , #1- you don't pay your premium by the required due date, or #2 - at renewal. If you have an undisclosed driver in your home, they can deny a claim, but they can't cancel your policy until renewal, or tell you that the driver needs to be added to continue coverage. If the person does not live in your home, then it's no different than you allowing me to drive your vehicle. They would cover a claim.

Answer 8

no they cant. call them back tell them that you dont appreciate being harassed like this and that you are switching insurance companies. switch companies. pay the extra $5 a month to have insurance put on to cover any one who drives the car. it is really worth the $5.

Answer 9

Can they prove it? How do they know it was your car and not one that looked like it??

Answer 10

Somebody is f__king with you.