Question about Coverage with Multiple Insurance Carriers
We currently have our home and auto insurance through AAA in California. As I’m shopping around with a broker, I’ve received a quote from Mercury that is lower, but they won’t insure our 2015 Tesla, which my husband primarily drives.
The broker suggested that we keep the Tesla with AAA and move our other two cars—a 2006 Acura (which my son primarily drives) and a 2018 Lexus (which I primarily drive)—to Mercury. I was unaware that this was an option.
I’m curious about how the coverage would work if either my son or I were to drive the Tesla, or if my husband drives our other cars. I want to ensure we’re fully covered in case of an accident, even if we’re not in our assigned vehicles. Are there any drawbacks to splitting our coverage between two different insurance carriers?
I want to make sure I have all the necessary information before making a decision. Thank you in advance!
It’s great that you’re taking the time to consider all your options carefully! When it comes to splitting your coverage between two different insurance carriers, there are a few key points to keep in mind:
Coverage and Liability: Each vehicle and driver should be covered under their respective policies. If you keep the Tesla insured with AAA, it will be covered under AAA’s policy, and the same goes for the other vehicles with Mercury. If your son, who is the primary driver of the Acura, were to drive the Tesla, the coverage might vary based on AAA’s rules regarding permissive use and the definition of primary drivers.
Permissive Use: Most auto insurance policies provide coverage for anyone who has permission to drive your vehicle. However, it’s essential to confirm this with both AAA and Mercury. Make sure to ask if there are any limitations when someone other than the primary driver is driving the vehicle.
Potential Coverage Gaps: If your husband, for instance, is not listed as a driver on one of the policies, there could be complications if he were to drive that insured vehicle. It’s important to ensure that all regular drivers are listed on the appropriate policies to avoid disputes during a claim.
Cost Considerations: Sometimes, having multiple carriers can lead to lower overall costs, but it can also make it more challenging to track your coverages and limits. You’ll want to compare the overall cost of having one carrier versus two and see if the savings with Mercury are significant enough to warrant the split.
Claims Process: Having two different insurance companies could complicate matters in the event of a claim. You’ll need to navigate through both carriers to ensure everything is handled correctly.
State Regulations: In California, you should ensure that both policies comply with state minimum coverage requirements.
Before making a decision, it may be helpful to reach out to both insurers directly for clarity on these details. Additionally, double-check with your broker to ensure that your family’s driving habits will be fully covered under the proposed arrangement. It’s always good to have all the facts laid out before finalizing any insurance decision. TIA for reaching out for this info; it shows you’re being proactive about protecting your family’s interests!