Can Auto Insurance Be Transferred?

1. 

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   Terry A. McCarthy, CLU, ChFC

   President, Insurance Associates Agency Inc., West Chester, OH

   Generally, an insurance policy cannot be transferred or assigned. Every personal auto policy I can remember reading prohibits assignment of the policy without the written consent of the insurance carrier. That makes sense because the carrier has a right to choose their customers and since it is their money providing the coverage, they have a right to consider any change of risk. As a general rule it makes more sense for a new policy to be written because even if the carrier consents to the change the new insured inherits the record of that policy including all the claims and payment history. If the coverage is being transferred between a spouse to another spouse after a death, the companies are not in the habit of denying the request to change the first named insured. Otherwise, per the ISO Personal Auto Policy, "Assignment of this policy will not be valid unless we give our written consent." The answer is no but there is a pathway to a "yes" if the carrier consents in writing.

   Answered on February 2, 2015

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2. 

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   David G. Pipes, CLU®, RICP®

   Business Development Officer, T.D. McNeil Insurance Services, Fresno, California

   An automobile policy is a legal contract. Most policies stipulate that there cannot be a change of interest in the policy unless the company consents to the change. Most companies will undergo a complete underwriting process if other drivers are now driving the vehicle. The normal exception is the death of the insured.

   Answered on February 12, 2015

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