I am an agent, but not P&C. Just saw that Shelter in Missouri has added "step Down Limits" on car insurance, if you loan your car to anyone. The limit drops down to to the state mandatory coverage.
Agent says Shelter pays up to state minimum requirements, then the overage is a claim against the insurance of the person u loaned it to. I asked agent if that person had mistakenly allowed their coverage to lapse, or if they only had state minimum coverage, once that is exhausted, does it come back to Shelter to pay more. They said even if u bought a million dollar policy, that the max that Shelter would pay is the state minimum.
Farm Bureau has something similar to this.
This opens the policyholder up to a lawsuit, when thy think they have bought sufficient coverage. Is this just in Missouri? Just these two companies?
This is why people hate insurance. Finding out the fine print when it is too late.
Agent says Shelter pays up to state minimum requirements, then the overage is a claim against the insurance of the person u loaned it to. I asked agent if that person had mistakenly allowed their coverage to lapse, or if they only had state minimum coverage, once that is exhausted, does it come back to Shelter to pay more. They said even if u bought a million dollar policy, that the max that Shelter would pay is the state minimum.
Farm Bureau has something similar to this.
This opens the policyholder up to a lawsuit, when thy think they have bought sufficient coverage. Is this just in Missouri? Just these two companies?
This is why people hate insurance. Finding out the fine print when it is too late.