Ask PIA

Re-tiering and the 2 percent nonrenewal limit

When an insurer re-writes an auto policy from one of its company tiers to another, is this re-tiering charged to the insurer’s 2 percent allowance for nonrenewals/conditional renewals?

NYAIP: International drivers’ licenses

I have an applicant for the New York Automobile Insurance Plan who possesses an international driver’s license.

1. Is he or she eligible for the Plan?
2. Is he or she eligible for the careful-driver credit?
3. Will he or she receive an inexperienced driver surcharge?

Rental car coverage limits

Is the coverage provided by New York’s Rental Vehicle Coverage Endorsement of the personal auto policy subject to any maximum limits or deductibles?

Physical damage inspections—used vehicles

A policyholder bought a car from a used-car dealer, but she did not have a physical damage inspection within 14 days. An accident subsequently occurred, and the company denied collision coverage. The policyholder has her own “before” and “after” pictures showing there was no prior damage to the vehicle. Also, isn’t the company supposed to waive the inspection on newly purchased vehicles if the client produces a bill of sale? 

NYAIP—surcharge

I have a couple insured in the New York Automobile Insurance Plan. The wife’s driving record is clean, but the husband’s record is not. However, he currently is in the Army, stationed in Korea. Why should the policy be surcharged because of his record when he is not technically residing in the household?

NYAIP: Inexperienced operator surcharge

My insured is an 18-year-old inexperienced operator in the New York Automobile Insurance Plan. He owns two cars. Should his rates for both cars be surcharged as an inexperienced operator, or only the vehicle he usually drives?

NYAIP: Assigned carrier lasts three years

My insured does not like the company he was assigned to in the New York Automobile Insurance Plan. He wants me to cancel and re-write the policy to get another company. I told him he will probably end up with the same company. Is this correct?

NYAIP: Physical damage inspections

Are vehicles seven-years-old or older exempt from the physical damage inspection in the New York Automobile Insurance Plan?

NYAIP: vehicle garaged out-of-state

Can I write an auto in the New York Automobile Insurance Plan if the principal place of garaging is out-of-state? The vehicle owner is a student residing in New York but attending college in Georgia.

NYAIP: Classic cars

I am trying to get comprehensive coverage for several “classic” vehicles, specifically a ’48 Packard, ’64 Corvette, ’72 Cadillac, and ’82 Oldsmobile. The usual antique car markets have turned down this risk due to the client’s driving record. This leaves the New York Automobile Insurance Plan. Does the NYAIP afford actual cash value coverage for classic cars (as opposed to book value)?

Surcharges for accidents in company cars

I thought that if a person is involved in an accident while driving a business-owned vehicle, his/her personal auto policy cannot be surcharged for the accident. I have a company that is trying to tell me I am wrong. What is the rule?

No surcharge for injury while parked

My insured put in a claim under Personal Injury Protection. Now the company is trying to surcharge for the “accident.” Here’s what happened: my insured’s car was parked, and he slipped and fell, breaking his wrist as he tried to enter the car. Can the company surcharge for this?

Defensive-driving courses—not retroactive

I have an insured who is in the New York Automobile Insurance Plan. He had a clean record and took the state-approved defensive-driving course in January 2021, receiving a credit on his premium effective February 2021. By November 2021, this client had accumulated eight Department of Motor Vehicles points. His insurance was canceled for nonpayment, and then he was convicted of Driving While Intoxicated. Since he had taken the defensive-driving course earlier, would it remove four points from his record?

Splitting policies upon divorce

My clients are getting a divorce, and they want to get separate policies on their two vehicles (each spouse owns one car). The company won’t go along with this, because the husband had a total theft claim. How should we handle this?

Personal auto policy is primary for bus accidents

Why is a child that is injured in a school bus accident covered by the parents’ auto insurance policy?

Covering employer who furnishes auto

My client is furnished with an auto leased by his employer. The employer told my client to register and insure the auto, naming the employer as an additional insured, as required by the lessor. However, the insurer will not add the employer as an additional insured. What can I do?

Rented van

My client is renting a van in order to transport a group of Girl Scouts. Will the van be covered for loss or damage under her personal auto policy’s rental car endorsement?

NYAIP: Surcharge time frame

An applicant came in who, in the last two weeks, had a property damage accident of more than $4,000 and a citation for speeding (70 mph in a 50 mph zone). I put him in the New York Automobile Insurance Plan. Will he be surcharged for these incidents now?

Livery use exclusion

Our insured, a corrections officer, uses his own car to transport prisoners to the doctor, etc. He is reimbursed by his employer. Is coverage for liability excluded by the personal auto policy’s public or livery conveyance exclusion?

Inexperienced operator surcharge

An applicant came in for auto insurance. He held a driver’s license from age 18 to 25 but then let it lapse for four years. Now, at 29, he has taken the test and received a new driver’s license. We are writing him in the New York Automobile Insurance Plan. Do we surcharge him as an inexperienced driver?

Named non-owner policy—rental car coverage

I have been asked to write a named non-owner auto policy for a client who does not own a vehicle of his own. Will this policy give him coverage for rental cars?

NYAIP: Additional vehicle

Our insured had a policy written in the New York Automobile Insurance Plan. He purchased a second car, and we issued an I.D. card and forwarded his deposit premium. Unfortunately, we did not pick up on the fact that the policy had already been canceled for nonpayment of premium. What should we do?

Rates applicable to replacement autos

How do we rate a change of vehicle midterm when the company has taken a rate increase since the inception of the policy? In our case, our client’s policy runs from June to June. In September, the company took a rate increase, and in October our client replaced his vehicle. Should the new vehicle be rated according to the old rates or the new ones?

NYAIP: Minimum commission

On New York Automobile Insurance Plan business, can a producer be billed for commission on earned premium that the insurer has not collected from the insured?

Children’s cars create a coverage gap

We have a husband and wife who have four cars. Two cars are insured for bodily injury liability at 250/500 plus an umbrella liability policy. There also are two children living with them who drive two other cars which we insure in the New York Automobile Insurance Plan at 25/50 BI limits.

If one of the children were in an accident and the 25/50 limits were exhausted, could the family rely on the parents’ 250/500 BI limits and then the umbrella policy?

Agent’s role in claims

How do we handle a situation in which clients either do not have collision coverage, or don’t want to use the collision coverage they have, when the other driver is at fault? Sometimes we are asked to help a client recover from the at-fault driver’s insurance company.

Pickups used for business

We insure a pickup truck on a New York personal auto policy. The pickup is used to deliver appliances and do servicing work. This truck is scheduled on the declarations page. If the client replaces this pickup, will the new truck be covered for this business-related use?

Timing of rate increase

On a personal auto policy, can the insurance company increase the premium after six months, or must it wait until the end of the required one-year policy period?

Personal auto policy coverage for hauling boats in connection with business

My client has a personal automobile policy. He also owns a business. About two or three times a year, he hauls boats that are connected with this business. Would his personal automobile policy exclude liability coverage if a claim occurs?

Surcharges and subrogation

Where is the rule that protects policyholders against surcharges if a subrogation action recovers at least one-third of the property damage claim amount?

N.Y. vehicle located outside the U.S.

A client had her car shipped to Italy still bearing her New York license plates. The vehicle is insured through us and also in Italy. Due to certain Italian rules, the vehicle cannot be registered in Italy. Therefore, if we can’t return the New York plates, how can I cancel the New York insurance policy without my client’s registration being suspended.

Learner’s permit holders

Through an underwriting questionnaire, an auto insurance company learned about a child in the household who just started driving with a learner’s permit. The company is demanding an additional rate for this driver, even though he is not yet licensed. Can the company do this?

Vehicle owner’s vicarious liability

My client is being surcharged for an accident under circumstances where his vehicle was stolen by an individual who was negligent in causing property damage with the vehicle. My client had left the vehicle unlocked with the motor running while temporarily parked on the street in front of his home. The insurer claimed that it had to pay for the damages because it could not defend the claim against the owner. Is this right?

Diminished value

Are personal auto insurers providing personal automobile insurance in New York required to pay for the diminished value of a vehicle that has been repaired after an accident?

Dual claims

A client is insured with Carrier A under a standard personal automobile policy and has an accident with another insured of the same carrier under the same type of policy. Both insureds have New York policies and garage their cars in New York.

It is my understanding that the deductible for collision is waived for both parties to the accident in this circumstance regardless of fault? Is this true?

Parental liability for a child’s actions

Can the parents of a young driver who registers and insures a vehicle in his/her own name be held liable for a serious accident caused by their child? If so, would the parent’s personal auto and umbrella policies provide any defense? For this question, assume the driver is under age 18 and living with his or her parents or a student away at school under 24 years old. Many parents question whether they could be named in a lawsuit for an accident caused by their child and if any protection would be available under their own personal insurance policies.

Multi-state policies

An insured lives in New York state and has a vehicle registered there, but also has a residence in Florida and has a vehicle registered in that state as well. The Florida vehicle is garaged in Florida; therefore, the insured obtained a Florida auto policy. Can an insured have two auto policies? If so, and the insured gets into an accident, which policy would respond?

Physician’s statement required for driver

One of our insureds has had their personal auto coverage with a carrier for many years and recently turned 70 years old. The carrier is requesting the insured provide them with a physician’s statement. Are carriers allowed to ask the insured for a physician’s statement when they turn 70 years old?

Renting an ATV

My insured will be going on vacation to Virginia and renting an all-terrain vehicle. Is there coverage under the personal auto policy?

Total loss valuation

A client of mine recently had an accident and their vehicle was declared a total loss. How does the company arrive at their figure? Is there a specific way in which the total loss amount should be calculated?

Out-of-state coverage under Added PIP

I know there are options to increase benefits under Added PIP in New York state, but I think it also expands coverage beyond Basic PIP for injured persons outside of New York state. How does this work?

MV-104 accident report notification

Does the law, which increased the property damage threshold for which carriers may assess a surcharge from $1,000 to $2,000, change the requirement to notify the New York State Department of Motor Vehicles if there is an accident with at least $1,000 in physical damage?

PAP racing exclusion

We had an inquiry from a high-performance auto owner who desires to race his car on a track that is set up for such use. The insurer is telling us there is no coverage for this activity. Are you aware of any specific exclusion pertaining to the “racing” of autos in New York? Would it be applicable to both liability and physical damage?

Exiting a vehicle

My insured, as he was about to open the door to his auto, tripped and fell. In the process of falling, he fell into his auto suffering severe injuries to his shoulder. Can my insured claim Personal Injury Protection for his accident?

Auto medical payments

Why would my client want to purchase auto medical payments coverage when personal injury protection in New York covers medical expenses?

Transportation expenses

Does a personal auto policy provide expenses for airfare if our insured is on vacation and his vehicle is stolen?

Medical payment for pets

Our insured was in an auto accident. The family dog, riding in the car, was hurt. Are the veterinarian’s bills covered under the medical payments coverage?

Camper trailers

My client has an auto camper-trailer on blocks at a campsite with an attached, screened-in porch. Is the porch covered against damage or loss on his auto policy? What about liability for accidents occurring in the camper or on the porch?

Snowplowing—personal auto liability

My insured has a pickup truck as his personal vehicle. In the winter, he mounts a snowplow on it—for his personal use, he says. I am concerned in case he may be plowing others’ properties for money. Would there be any exclusion of coverage if this were the case?

Golf cart liability

Our client accidentally injured his golf partner when he lost control of the golf cart. He has asked whether there is any coverage under his auto policy. He also has a condo policy.

Volunteer drivers

One of my insureds drives her own personal vehicle in volunteer work for the Red Cross. She transports people to doctors and hospitals for appointments. Is there an endorsement to cover this situation?

Named non-owned coverage

How does our agency provide coverage for people who do not insure owned autos on a personal automobile policy to protect them when they borrow a car for personal use? They are furnished a corporate car, but the insurer will not add drive-other-car coverage on the business automobile policy.

Federal employee exclusion

My insured took a job with the U.S. Post Office. She became alarmed when she was told by her employer that her personal auto policy would not cover her while on the job. Can this be true?

Noncooperation

My client’s car was hit by another auto. Now the other driver’s insurer has denied coverage due to lack of cooperation by its insured. Can they do this?

Physical damage

We have a client who is the named insured on a personal auto policy covering his owned vehicle. His wife and son have leased another vehicle. Is the leased automobile covered on the father’s policy for physical damage coverage?

Military service and youthful operators

We insure a family whose young son is away serving in the military. Do we need to rate him as a youthful operator on his family’s auto policy?

Horse trailers covered

We insure a husband and wife who own eight automobiles and three trailers. They use the trailers to haul horses. Are the trailers covered under their personal auto policy?

Damage by rodent

The lights went out on my client’s Thunderbird. The mechanic found a mouse that had been chewing on the wires. Can a claim be made under the comprehensive coverage?

Total loss—insurer’s option

Following a coastal storm, we had a loss involving a vehicle which had been subjected to immersion in salt water. The client had a $2,000 repair estimate. The company insisted on totaling the vehicle, at about $12,000. The company took the position that, if salt water had come up to the floorboard, it would only give the client the option of withdrawing the claim or accepting the total loss and surrendering the vehicle for salvage. The company said that corrosion would cause her additional problems down the road. The client was adamant about keeping her car; meanwhile, she was driving it! Was the company within its rights?

Coverage for employer

My client’s employer wants to be covered while the client uses his personal auto for business-related activities. How can the employer be covered if the insurer refuses to add the employer as an additional insured?

Stolen auto scenarios

We recently had two situations involving stolen vehicles. In the first case, a stolen vehicle hit our insured’s vehicle. Can our insured collect from the policy of the vehicle stolen?

In the second case, it was our insured whose vehicle was stolen. He has acquired a replacement and wants to delete the stolen vehicle and add the new one. What happens if the stolen is recovered?

Trailer coverage under personal auto policy

We have an insured with a tractor that he transports on a trailer pulled by his personal vehicle. He may be starting a lawn-mowing business and he has several coverage questions. First, does he have coverage for this use of the trailer under his personal auto policy? Second, if the tractor falls off the trailer while being transported and hits another vehicle, is damage to the other vehicle covered? Also, can he get coverage for use of the tractor?

Comprehensive coverage applies to contact with deer

Would a collision with a deer be considered a “collision” under the personal auto policy and, therefore, covered under the collision coverage portion of the policy?

Coverage for day-care transport

Our insured provides family day-care in her home. When she is driving the children in her car, would any accident be covered under her personal auto policy, or does she need a commercial policy?

Duty to defend when limits exhausted

Under the personal auto policy, are the liability limits reduced by the legal costs of defending the claim?

Other state registrations

Does a Connecticut personal auto policy cover autos that are registered in other states?

Motor home not covered if rented to a friend

Our client owns a motor home insured under a personal auto policy. He wants to rent it to a friend and wants to know whether it will still be covered while rented.

Damage to plow

We’ve run into a claim dispute over a snowplow attached to a pickup truck. The insurer is denying the claim for damage to the plow, based on the exclusion applying to “any custom furnishings or equipment in or upon any pickup or van.” Are they correct? If so, other PIA members should know about this potential problem!

No license, no permit

We have a company that automatically added a 16-year-old to the  parents’ auto policy, even though the teenager does not have a license or a permit. The company stated that many insureds fail to report youthful drivers when they begin operating vehicles, so it has implemented a practice of adding them automatically at age 16.. I thought a company could add unlicensed drivers only if they are proven to have been driving (e.g., had an accident or received a ticket). Who is right?

Non-owned motorcycle dilemma

We have been asked the following question but need to confirm the answer. Alexander, 21, took a short ride (about a half mile) on his friend’s new motorcycle. He skidded out, fell off the bike (with only minor injuries), and the bike was damaged. The friend with the new bike did not have collision insurance, and the estimate is $8,000 for repairs. Of course, Alexander is responsible to return the motorcycle to its new condition. Is there any coverage for this cost in an auto or homeowners policy?

Third-party uninsured vehicle

Can an insurer deny payment for damages to a claimant’s vehicle if the claimant’s vehicle was uninsured at the time? The claimant’s vehicle was parked and the neighbor backed into it and the neighbor’s insurance carrier is denying payment.

Renting a moving truck

My client is renting a moving truck to move from one house to another. The rental company is telling him that his auto policy will not cover him because the vehicle he is renting has a gross vehicle weight of 25,500 lbs. and is commercially registered. I believe he is covered since there is no weight restriction on a van or truck and there is no specific definition of a van on the policy. Is he covered or not?

‘Active duty’ clarification

We were told by one company that if a son/daughter is in “boot camp” or basic training that this is not considered active duty, so they will charge until he/she has passed basic training and becomes “active.” Is this correct?

PAP coverage for vehicle contents

Our insured transported on his trailer a tool box belonging to his future son-in-law. The box was loaded negligently, flipping the trailer damaging the box. The personal auto policy insurer is denying coverage based upon Exclusion A.2. applicable to property being transported by the insured and Exclusion A.3. applicable to property in the care of the insured. On the face, it appears the insurer is correct. However, I am disturbed when I reflect on these exclusions. If I offer my friend a ride to the airport and have an accident, the personal auto policy will cover him for bodily injury and personal injury protection, but will not cover his suitcase and its contents. Depending on the valuables in the suitcase, I could have a significant property damage exposure for which I have no coverage. How can this be covered?

Be careful when replacing vehicles

An insured contacted us to let us know of the purchase of a new vehicle and that he was trading in the old one shortly. Our insured also informed us that while on the way to pick up the new vehicle, they were coming by our agency to pick up the identification cards. If we issue the I.D. card would our insured be protected if he or she is involved in an accident on the way to the dealership?

Lending a vehicle to a friend

Our daughter has a vehicle, with her own insurance policy, away at school with her. She called me the other day to tell me the car was in an accident. She had let her friend drive it and her friend caused an accident. The accident will be reported on her friend’s insurance, right?

Borrowing a friend’s truck to pick up supplies

I borrowed my friend’s pickup truck to go to Home Depot and get supplies. While driving the vehicle, I was involved in an accident. I don’t want my friend’s insurance rates to increase because of this. Could you confirm if my insurance will cover the damages?

Insuring the lessor on a personal auto policy

My client insures a leased vehicle on a personal auto policy. The leasing company requires that it be added to the policy as an additional insured and loss payee. The insurer issued an additional interest endorsement and will not issue an additional insured endorsement. Will the additional interest endorsement satisfy the needs of the lessor?

Deceased auto policyholder

We have an auto policyholder who recently died and her children are wondering if they can drive the car. If they are insured while driving the car, is coverage under the policy the same as it was for the deceased named insured?

Pizza delivery

Our insured’s son just started working for a pizza shop. They are having him use his own car for the deliveries. I am worried there would be no coverage in the event of an accident. Does he have coverage, while using his car to deliver pizza, in the event of an accident?

DWI—collision coverage

I have a personal auto insured that was involved in an accident and was cited for driving while intoxicated. The carrier is disclaiming collision coverage citing that DWI. Can carriers exclude this coverage under these circumstances?

Personal auto owned by trust

When a trust owns a vehicle insured on a personal automobile policy written in the name of the grantor, how do you reconcile coverage as primary if the Other Insurance provision states coverage is excess for a vehicle not owned by the named insured?

Automobile recall

Recently, an auto manufacturer had a recall on the air bags in some of their vehicles and they are advising consumers not to drive their vehicles until repaired. The manufacturer is offering loaner vehicles, available from the dealership, since they are expecting it will take several months until the vehicles will be properly repaired. Will our insureds have proper coverage from their auto policy for the entire duration they have access to the loaner vehicle?

Thinking of pizza delivery while laid off from work

Our insured’s son just started working for a pizza shop because he has been temporarily laid off from work. They are having him use his own car for the deliveries. I am worried there would be no coverage in the event of an accident. Does he have coverage, while using his car to deliver pizza, in the event of an accident?