Uninsured or Unlicensed Driver Question?

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Uninsured or Unlicensed Driver Question?

Postby 911ROCKEt.10417 » Sat Mar 09, 2019 4:46 pm

Wondered if anyone would be willing to provide me with any feedback regarding buyers that finance car BHPH?

Example: Wife is listed as Rated Driver on the Insurance Policy, has valid NC Driver License and collision coverage naming lienholder has been verified.

* What has happened to me twice in the past month is someone lists themselves as single via credit app or insurance application, then you find out they have UNLICENSED Husband/Child/Significant Other (and/or) allow a Licensed Person / Babysitter, Neighbor, Friend operate the vehicle, that are not listed as RATED Drivers on the original insured Driver Policy are now operating the financed vehicle.

* Checked w/two different insurance carriers and both stated anyone operating the vehicle in the event of total loss, NOT LISTED AS INSURED DRIVER would not be covered under the policy, therefore, lienholder would not be reimbursed for vehicle if it was total loss situation based on Unlicensed and/or uninsured driver.

We do inquire / discuss household members, insured drivers and I am told the Insurance Agent also asks these questions, but some of the smarter consumers tell fibs to get the loan approved and it appears they could leave in a bad position if total loss occurred. Assuming a Judgment in small claims court could be pursued, but I am wondering if that's the only answer, as many times, the buyer may jst not have anything substantial to put a judgment against......

Is the Insurance Company's disclaimer about drivers not listed on policy 100% accurate or could this be contested considering the person they Insured allowed an uninsured driver to operate the vehicle, therfored the Insurance Company should payout lienholder and pursue the Buyer themselves?

NOTE: Not trying to start a dispute in any way, assuming others may have ran up against this over the years and I am curious how they handle these unforeseen situations?

Ty, Rob
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Joined: Sat Mar 09, 2019 4:21 pm

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