Multiple Vehicle Insurance

[George Selby]

At 11:23 AM 3/27/03, you wrote:
>But my insurance company doesn't see it that way
>and requires full liability coverage on each of the 3 cars to cover for
>anybody else driving the car. Their statement is that the insurance follows
>the car, not the driver. At least that is the case for CT. I would agree
>for the comprehensive portion but not the liability. But I suppose the
>argument is that I can't ensure that whoever borrows my car is insured.


The reason each has to be insured is that the car is insured, not the
driver.  I have 3 insured cars and I am the only driver (No comp on any,
liability (100/300/100) and un/underinsured (100/300/50) and medical (5k)
on each it runs $1450 a year. I have an at-fault accident which make it
more expensive (35%) than usual for the next 2 years.  I get a multi-car
discount, a claim-free discount on the two cars I haven't wrecked in the
past 3 years, and I am only charged un/underinsured once for all three cars.)

I lent a car to a friend earlier this year, and he crashed into a parked
car.  He has insurance on his car.  My policy paid for the accident, as
insurance goes with the car. (I didn't have Comprehensive, so he has to pay
me for the damage to my car out of his pocket, his liability only covers
damage his car creates.)  However, since he has an insurance policy, his
rates go up for the accident, and mine don't (In retrospect for him, maybe
renting a van would have been cheaper than borrowing my station wagon.)  If
he was not insured (listed as a driver) on anyone's policy, then he would
have been assigned to my policy, and my rates would have gone up.  The
moral of the story:  Don't lend your car to an uninsured driver, and if you
don't have comp, don't loan it to someone who can't afford to buy it.

I assume the reason the collector car insurance companys can charge less
for multi-car policies is they probably exclude anyone other than the owner
from driving the car, and thus you truly only can wreck as many cars as the
number of drivers listed.



George Selby
gselby4x4 at earthlink.net