Question Regarding Coverage with Multiple Insurance Carriers
We currently have our home and auto insurance with AAA in California. I’m exploring options through a broker, and I’ve received a quote from Mercury, which is the lowest, but they won’t insure our 2015 Tesla (with my husband as the primary driver).
The broker suggested a solution: keep the Tesla insured with AAA while moving our other two cars—a 2006 Acura (driven primarily by my son) and a 2018 Lexus (my primary vehicle)—over to Mercury. I wasn’t aware that this combination was an option.
My concern is how coverage works if either my son or I happen to drive the Tesla, or if my husband drives any of our other vehicles. I want to ensure that we’re all adequately protected in the event of an accident, even if we aren’t driving our assigned vehicles. Are there any potential drawbacks to managing our coverage across two different insurance companies?
I want to make sure I fully understand everything before making a decision. Thank you in advance for your help!
It’s great that you’re considering your options carefully when it comes to insurance coverage! Here are some key points about splitting your auto insurance coverage between two carriers:
Coverage for All Drivers and Vehicles: In most cases, auto insurance policies will cover drivers who are listed on the policy as well as those who have permission to drive the insured vehicles. If your son or you drive the Tesla, you should be covered under your AAA policy as long as you have permission from your husband (the primary driver). However, be sure to confirm specific details with your AAA policy.
Non-Owned Vehicle Coverage: If either you or your son drives the Tesla, you may be covered under AAA’s liability policy, but it’s important to double-check that your coverage includes “non-owned” vehicles if those situations arise.
Potential Gaps in Coverage: Having coverage with two different carriers could lead to complications, especially if an accident occurs when someone is driving a vehicle insured by a different company. If your husband drives either the Acura or the Lexus and gets into an accident, Mercury will cover the situation, but it’s vital to ensure that both policies have the same level of coverage (liability, collision, etc.) to avoid any gaps.
Consider State Laws: Since you’re in California, also keep in mind that the state mandates minimum coverages. Make sure that both AAA and Mercury polices meet or exceed these requirements.
Cost vs. Convenience: Splitting coverage can save you money but can also complicate claims processes and administrative tasks. Having all your vehicles with one provider might simplify billing and claims if you’re ever involved in an accident.
Family Driving Other Cars: If your husband or son drives either the Acura or Lexus, they should be covered under your Mercury policy as long as those individuals are listed as drivers on that policy. Just double-check how the coverage works for occasional drivers.
Ultimately, it’s best to discuss your specific situation with both insurance carriers or your broker to ensure you understand the implications of splitting coverage. Make sure you’re comfortable with the arrangements and have clarity about how claims would be managed in case of accidents. Good luck with your decision!