Car insurance asking me to sign odd documents?
November 3, 2014 10:59 AM Subscribe
What are these jargony documents my car insurance company asked me to sign after I bought a policy from them?
I recently signed up full coverage car insurance with 21st Century Insurance in CA. After signing up, they sent me some forms to fill out, which seem to be asking me to voluntarily give up certain protections, at no benefit to me.
They preface this by saying "Some state laws require that we amend the coverages on your Policy Declarations if you do not return the signed Coverage Selection Forms" -- which seems to imply that something bad could happen to me if I don't sign these forms?
For example, a "WAIVER OF COLLISION DEDUCTIBLE" -- which seems to be asking me to actually reject something (a waiver of a deductible) that I am explicitly paying for on my coverage.
Also, an "AGREEMENT TO DELETE UNINSURED MOTORIST PROPERTY DAMAGE COVERAGE", which seems to only apply to policies that don't have collision, which mine does -- but regardless, seems to be asking me to sign off on not getting coverage that California state law otherwise says I have to have.
Or, AGREEMENT TO DELETE UNINSURED MOTORIST COVERAGE, which seems to be finding a loophole in CA law where they wouldn't have to pay for something if I sign something.
What's going on here -- am I reading these right? When I look at the forms, they don't seem make sense for me to sign -- but the website says the forms are "needed in California" -- but needed by whom? Do I need to sign? Could my insurance somehow become invalid if I don't sign these forms?
I recently signed up full coverage car insurance with 21st Century Insurance in CA. After signing up, they sent me some forms to fill out, which seem to be asking me to voluntarily give up certain protections, at no benefit to me.
They preface this by saying "Some state laws require that we amend the coverages on your Policy Declarations if you do not return the signed Coverage Selection Forms" -- which seems to imply that something bad could happen to me if I don't sign these forms?
For example, a "WAIVER OF COLLISION DEDUCTIBLE" -- which seems to be asking me to actually reject something (a waiver of a deductible) that I am explicitly paying for on my coverage.
Also, an "AGREEMENT TO DELETE UNINSURED MOTORIST PROPERTY DAMAGE COVERAGE", which seems to only apply to policies that don't have collision, which mine does -- but regardless, seems to be asking me to sign off on not getting coverage that California state law otherwise says I have to have.
Or, AGREEMENT TO DELETE UNINSURED MOTORIST COVERAGE, which seems to be finding a loophole in CA law where they wouldn't have to pay for something if I sign something.
What's going on here -- am I reading these right? When I look at the forms, they don't seem make sense for me to sign -- but the website says the forms are "needed in California" -- but needed by whom? Do I need to sign? Could my insurance somehow become invalid if I don't sign these forms?
I am not an insurance agent, and I am not a lawyer. This is not legal advice. Please call an agent at the company to ask, and/or contact a lawyer, if you are so inclined.
"Waiver of Collision Deductible" seems to be requiring you to pay the deductible if you're in any accident. i.e. if your collision deductible is $500, you pay $500.
If you don't sign it, I would imagine they are required to waive your deductible if the accident is not your fault, i.e. if you hit someone, you pay $500, but if someone hits you, you pay $0. The form seems to indicate that CA law requires them to provide this coverage, so if they try to force you to sign the form and you don't want to, I'd say that would be a good reason to report this company to the CA insurance board (or whoever is responsible for that sort of thing).
The Agreement to Delete Uninsured Motorist Property Damage Coverage doesn't seem to apply to your policy, as you have Collision.
The Agreement to Delete Uninsured Motorist Coverage seems to be way to get you to agree for them not to cover uninsured motorists you get into accidents with. This seems to be required by CA law unless you sign to decline it.
My guess is someone at their corporate office said, "Make all CA applicants sign these. No one reads what they sign anyway, and then we don't have to pay for as much!"
I routinely annoy insurance agents, real estate agents, and my wife by reading every word of every legal document I sign, and asking questions if I don't understand something. More people should do this.
posted by tckma at 11:14 AM on November 3, 2014 [5 favorites]
"Waiver of Collision Deductible" seems to be requiring you to pay the deductible if you're in any accident. i.e. if your collision deductible is $500, you pay $500.
If you don't sign it, I would imagine they are required to waive your deductible if the accident is not your fault, i.e. if you hit someone, you pay $500, but if someone hits you, you pay $0. The form seems to indicate that CA law requires them to provide this coverage, so if they try to force you to sign the form and you don't want to, I'd say that would be a good reason to report this company to the CA insurance board (or whoever is responsible for that sort of thing).
The Agreement to Delete Uninsured Motorist Property Damage Coverage doesn't seem to apply to your policy, as you have Collision.
The Agreement to Delete Uninsured Motorist Coverage seems to be way to get you to agree for them not to cover uninsured motorists you get into accidents with. This seems to be required by CA law unless you sign to decline it.
My guess is someone at their corporate office said, "Make all CA applicants sign these. No one reads what they sign anyway, and then we don't have to pay for as much!"
I routinely annoy insurance agents, real estate agents, and my wife by reading every word of every legal document I sign, and asking questions if I don't understand something. More people should do this.
posted by tckma at 11:14 AM on November 3, 2014 [5 favorites]
To add to my answer -- Don't be surprised if your insurance premium goes up from what you were quoted if you do not sign these forms. Refusal to sign would compel the insurance company to provide coverage they probably weren't planning to provide to you when they gave you the quote.
Also, if they try to make you sign the forms, I suggest you consider another insurance company in addition to reporting 21st Century to the appropriate California insurance regulation authorities.
posted by tckma at 12:09 PM on November 3, 2014 [1 favorite]
Also, if they try to make you sign the forms, I suggest you consider another insurance company in addition to reporting 21st Century to the appropriate California insurance regulation authorities.
posted by tckma at 12:09 PM on November 3, 2014 [1 favorite]
Definitely ask them questions until you're satisfied with the answer. Insurance can be complicated, but at least it's highly regulated, so the same general issues and questions should pop up for everyone. For your questions, other than asking the agent, check out this webpage. Seems to answer your questions pretty well. Seems to say that CDW is something helpful for you if you have collision coverage; the insurer will pay your collision deductible instead of your being out of pocket. If you have collision coverage and CDW, seems like you may not need UMPD. Uninsured motorist coverage, though, I would think you'd want if it covers bodily harm. TINLA of course.
posted by odin53 at 4:02 PM on November 3, 2014
posted by odin53 at 4:02 PM on November 3, 2014
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posted by HuronBob at 11:10 AM on November 3, 2014 [6 favorites]