Financial Channel

In Colorado, is it legal for 2 ppl living in the same household, to have seperate insurance policies through seperate companies on the same vehicle? The vehicle is titled under only one of the ppl, and the insurance policy of the vehicle owner has an exclusion on the second driver.
Is this legal?

Thank You,
T

The bigger problem would seem to be that the non-owner has no insurable interest in the vehicle, and may risk having a claim denied on that basis. Why not just get a single policy through the second company that is willing to insure the non-owner?

if the vehicle were titled under both ppl would that change the situation?

My response:

Tomorrow, when you contact your "Department of Insurance," please let us know what they say.

IAAL

pposed to be facetious or serious?

Knowing IAAL (sort of), probably both.

I don't know of any reason why the owners can't have 100 policies, if they want. But it will almost always be cheaper to have a single policy with a comany that will cover the bad driver.

If your vehicle was totaled, then both companies would split the cost of the value of your car. Exampled , if your car was worth $6000, company A would have to pay $3000 and company B would also have to pay $3000.

It would be illegal if you tried to recover $6000 from each carrier.

Also if you are responsible for an accident, then both companies must share the cost. It just means you have twice as many adjusters calling you for statements, looking at your car and estimating , and then both companies would have to come to an agreement.

As for as the exclusion on the policy, anyone that lives in your household and drives that vehicle is REQUIRED to be a rated driver on the policy.You can not have them excluded when in reality they are driving the car on a regular basis. If the non owner is in an accident, the insurance company must still talk to the owner before taking a statement from the non owner and will only talk to the owner to issue repairs.

Legally ALL accidents that the VEHICLE is involved in must be reported to BOTH companies. So both policies could have their rates hiked by an accident.

It seems one would have the exclusion because they really don't think the other person is a safe driver and they don't want to be responsible for their actions.

It's legal to have 2 policies for the same vehicle, it is not legal to have the exclusions.