HB 335

I received an email yesterday asking me to email my state representative and tell him to vote NO to a bill that is on the calendar.  It was for House Bill 335 which is designed to prohibit the use of Named Driver policies.    Named Driver policies only cover the drivers that you have listed on the policy and are usually cheaper for that reason.  That means that if you loan your car to your brother and he is not listed as a driver, he is excluded from being covered.  These types of policies may be cheaper but they pose a problem to the rest of us.  I recently had a commercial client that had one of their company vans totaled by an excluded driver.  Why was he excluded?  Because it was a named driver policy and therefore no coverage was afforded to the guy that they had let borrow their car.   So the claim was denied by the other insurance company and my client has to file under their own uninsured motorist coverage with their own insurance company.   Then my client’s insurance company will probably have to turn around and sue the driver and maybe the car owner to get their money back.    I would like to see this bill go through so scenarios like this don’t happen.    The other bad part about this is  that the guy driving (that was excluded)  and the car owner–  their insurance isn’t going to pay for the damages or pay to defend them in a lawsuit.  So the insurance they have been paying for (no matter how cheap) has hung them out to dry.

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