Premiums increase for accident experience of previous insured?

by Sarah
(Toronto, Ontario, Canada)

I held a single auto policy with TDMM from September 2008-September 2009. The policy was under my name. I was insured for the entire term, and my ex-husband was insured from Sept 2008 until February 2009. I removed him from my policy when we separated. He had an accident (December 2008) where I had to make a claim for 12500.00 damages (he was the only vehicle involved).

Even though I removed him from my policy and we are now legally divorced, when I got a new policy (for myself only) in Sept. 2009 with a different insurance company I had to pay almost $200/month in additional premiums for his accident history, even though he is not even on the policy and we are divorced. I was told that since he is not currently insured elsewhere, that the accident has to be reflected somewhere (i.e, against the policy holder at time of accident). His license has since been suspended for DUI and so he will not be getting his own insurance any time soon.

Is there any option for me to avoid having to carry his poor experience rating for the next 6 years or am I stuck with this outrageous premium increase until he has his own insurance?

Any advise would be greatly appreciated.

Thx.

Answer

Hi Sarah

Thanks for the detailed question. The key to the answer is who the owner of the car was and who the policy holder was. As the policy holder and the owner of the car that was in an accident it will be reflected on your record.

Some insurers would want to reflect the accident on your record even if your husband was insured elsewhere.

I wonder why you didn't stay with the old insurance company. They might have had accident forgiveness in place on your policy. But I assume that is not the case or else you would have stayed with that company.

Sorry for the bad news.

Canada Insurance Source

PS Any time you lend your car out to someone, even if they are not on your policy, you are putting your insurance record on the line for their claims