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Q: We had a question put to us about some online companies that don’t cover drivers who were not named on the policy.

If you have ever been told that, there seems to be some misinformation floating around, here is the correct answer from our agency partner attorney.  Please give us a call if you have heard this also or want to discuss.

A: In Minnesota,

[the insurance company] has to cover “permissive users”, even if sold on line.

Typically, the insurance company would be held responsible if they were negligent in under-insuring someone. However, the law only applies responsibility to an agent who has an understanding of his clients assets.

A computerized seller would have no idea of the assets of an individual, income, etc, so an individual would not be successful in such a suit [against a computerized seller] under current Minnesota law.

Ironically, a regular agency would be responsible because they ask those questions. Typically, they use a form that makes the client acknowledge they are taking less coverage than you recommend.

Unfortunately most people have no idea how they can be screwed by computerized purchased insurance. The law supports the insurer.

Post Author: Steve Sarantos

Steve Sarantos spent his first 20 years after education, working in the auto industry, retail, and importing from the orient. Most of the positions were sales, or negotiating with vendors, which gave him a wealth of experience working directly with people and what it takes to make things work for both parties.
When he decided to go into business for himself, insurance seemed like the perfect venue. Help people with something most knew very little about, get the right product for the right price. Everyone has to have it in or form or another, so all you have to do to be successful is be honest, keep your promises, and offer people what they want. Someone to talk to about insurance that will give them choices and straight talk.
After starting Reliable Insurance Network from scratch in 1996, it is now a thriving family business with clients in MN, WI, and AZ. Reliable Insurance Network continues to refine it's processes, use technology to stay flexible, and let clients work with them in whatever way is comfortable for them, and provide top companies and rates along with superior service so everyone is happy.