Can an insurance agency require you to insure both vehicles with them?

Question

The Farm Bureau requires that they insure 100% of a person's vehicles.

They said it is policy because if someone insured just one vehicle, got into an accident and they found out that I had another car insured at another firm, then the coverage at The Farm Bureau would be voided.

I don't trust this.

Answer 1

They may require that all vehicles a person owns be insured with them in order to qualify for a discount, however they cannot void coverage because of this. There are a number of reasons why this action may seem suspicious to an insurer. Some insurers may think you are trying to hide a high risk driver and/or high risk vehicle from them. However if all drivers have been disclosed on both policies and you are truthful as to who is the actual principal driver on which vehicle then they cannot deny a claim and/or void coverage because of this. It is conceivable that two vehicles you own can be insured with two different companies. Maybe you have a Camry you drive to work in and a mint 1969 Camaro that you drive on the weekend. Many companies will offer very attractive rates on the Camry but not everyone is willing to insure a classic car like that.

However if Farm Bureau is going to stick to their guns you might want to ask yourself is it worth going with a company that is going to hassle you over a small thing like this (imagine if this was something big!)?

Answer 2

they sure can!  the above is correct

Answer 3

Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. Some companies run credit scores and MOST run a motor vehicle report and CLUE (Comprehensive Loss Underwriting Exchange) report to see about undisclosed accident involvement.

The best thing to do is call a LOCAL independent agent. Don't go across town, or to some other city - look for someone CLOSE. Just look in the phone book for the PIA or Big I (Trusted Choice) logos and you will find a professional licensed agent that will be able to help you solve your insurance problems, and give you rate comparisons of several different companies.

An independent insurance agent will normally have a dozen different companies and if he cannot help you, he should be networked with other local agents that can.

If you have several differnet policies in the same house, you can run the risk of NOT having coverage - or there may be a "stacking" problem.  Depending on your State, insured person is defined as a 1) named insured 2) spouse and 3) members of the household. So, if you had more than one policy - which company should pay?

Most of the replies on this site say "go to this on-line carrier or that on-line carrier or that 1-800 number" but I'm sure that when you do, you will find some impersonal computer user with a script to work from and you won't be able to talk with the same person every time you have a problem!

Good luck, drive RESPONSIBLY and I hope this helps!

Answer 4

Many of the "better" insurance companies require that all vehicles in a household are insured by them. The reason for this is their policy is more comprehensive than some other companies. When you are insured by one of these companies you are insured driving any car at any time (even rentals) and anyone driving your car is insured. The insurance company takes on more risk. With other companies you are only insured driving the listed car.

Answer 5

This is true and also you are loosing out on a 25% ddiscount for a multi car.  The insurance law on this is regulated by the state.  One of the questions on the application is do you have any other cars in the house insured with another company

Answer 6

You should want to have all of your vehicles with one company (there are a few exceptions which I will explain in a second).  If you are unwilling to do this then you are probably hiding something, because it is only in your benefit to keep all vehicles "under one roof" so to speak.  An insurance company gives you some extended liability coverage in some cases and all your insurance company is trying to do is to protect you and protect themselves.  

Each company could say that the other is liable, leaving you with no coverage in the event of the loss.  One thing that people don't realize is that an insurance company is securing, for you, a loan of sorts in the case you become liable in an accident.  Don't you think that there would be some requirements or restrictions?  

Exceptions to the rule could be motorcycles, travel trailers or motor homes, golf carts , ATVs, segways, snowmobiles and collector cars.  If they are telling you that their policy will be voided because you own a vehicle they don't write...that's pretty strange.  But if it is a situation where you literally have two insurance policies with two different companies then do yourself a favor and combine them.

I would, however, advise anyone that if they don't trust their agent for any reason...they should seek another.

Answer 7

They can not require that, the agent is just trying to jerk you around.  

I would recommend just going to a different agent all together, but you could also contact whoever in your state regulates insurance.