Question About Coverage with Multiple Insurance Carriers
We’re currently insured with AAA for both home and auto in California. I’ve been exploring options through a broker, and while Mercury provided the lowest quote, they won’t insure our 2015 Tesla, which my husband drives primarily.
The broker recommended that we keep the Tesla with AAA and switch our other two vehicles—my son’s 2006 Acura and my 2018 Lexus—to Mercury. I had no idea this was an option!
I’m curious about how coverage would work if my son or I happen to drive the Tesla, or if my husband ends up driving my car. I want to ensure that we all have coverage in the event of an accident, even when driving vehicles that are assigned to someone else. Are there any drawbacks to splitting our insurance between two different providers?
I want to make sure I fully understand the implications before making a decision. Thanks in advance for your help!
It’s great that you’re thoroughly considering your options for insurance coverage! When it comes to splitting your coverage between two different carriers, here are a few important points to keep in mind:
Coverage for Non-Assigned Drivers: Generally, most auto insurance policies provide coverage for permissive drivers. This means that if your husband, son, or you were to drive the Tesla (insured with AAA), they would typically be covered in the event of an accident, as long as they have permission from the primary policyholder. However, it’s crucial to confirm this with AAA specifically for your policy.
Coverage for Assigned Vehicles: If your son or husband drives the Acura or Lexus (insured with Mercury), they should also be covered as long as those cars are listed in the policy and they’re licensed drivers.
Liability Considerations: If one of your family members is driving a vehicle insured by a different carrier than their primary vehicle, ensure that the liability limits are sufficient to cover any potential accidents. Usually, your liability coverage travels with the vehicle being driven, but reviewing the details of each policy is essential.
Claims Process: Having multiple insurers can complicate the claims process, especially if an accident involves vehicles insured by both companies. You may need to coordinate and communicate with both insurers, which could create delays or confusion.
Potential Cost Implications: Make sure to review both policies and understand how splitting coverage might affect your premiums. Sometimes, having multiple vehicles with one insurer can qualify you for better discounts.
Underinsurance Risks: Ensure that both policies provide enough coverage for your assets. If one company offers lower coverage limits or has significant exclusions, you might face higher out-of-pocket expenses in case of an accident.
Policy Differences: Different insurers may have different terms, conditions, and exclusions. It’s important to read through each policy carefully and understand the implications of having different coverage across multiple carriers.
Ultimately, keeping clear communication with both your broker and the insurance companies will help ensure that you have the right coverage for your family’s needs. It’s always a good idea to clarify any uncertainties with your insurance agents to avoid surprises later on. Good luck!