Important Changes Coming

Progressive introducing Collision Damage Coverage Change

As your Independent Agency, we feel that it is of utmost importance that we advise you of upcoming material changes to your insurance policy, especially when the change could impact coverage. 

The change is involving Progressive's treatment of unlisted household drivers.  "Household drivers" refers to anyone who lives in your home, at same address, regardless of their relationship to you. In the past, Progressive would cover damage to your insured vehicle (if you carry Collision coverage on the vehicle) even if you failed to list the household driver on your policy.  While it is always recommended that you reveal all household drivers, there could be situations where one forgets to add a driver that moves in to your home or forgets to add their teenage driver to the policy when they get licensed.  These are situations where Progressive may have been more lenient in the past.

At renewal, Progressive is adding what is called a Collision Damage Exclusion endorsement to all Automobile policies.  The specifics of the endorsement will be included in your policy paperwork at renewal, however, we'd like to highlight what this actually means in "real life" terminology. 

1. Progressive reserves the right to exclude coverage for your vehicle should the vehicle be operated by a person who is discovered to have been living in your household for OVER 6 months yet you failed to report them as a new household driver.

2. Progressive reserves the right to exclude coverage for your vehicle should the vehicle be operated by a newly licensed operator who has been licensed for OVER 6 months.  Think Teenager!  While exceptions will be made for the first few months if you forgot to call to add your new teen driver to the policy, it is now critically important that you remember to call us or Progressive to add any newly licensed operators to your policy.  It is best to just call us right away when you have a new driver, to ensure coverage will apply without question should there be damage to your vehicle.

3.  Exceptions will be made if the driver is not listed but it was necessary for them to drive your vehicle due to a medical emergency or if all other drivers were intoxicated (i.e. a "designated driver"). 

Remember these changes ONLY apply to individuals who have taken up permanent residence in your home.  These changes do NOT apply to occasional use of a vehicle by your family members and friends who do NOT reside in your home (i.e. if you have family coming in to town and they need to take your car for a drive, coverage will still apply). 

The Bottom Line:  If you have newly licensed individuals who already live in your home OR have licensed individuals moving in to your home (regardless of their relationship to you), it is critical that you contact us to ensure no gaps in coverage will exist. 

Also, it is important to note that this change only impacts Collision Coverage (i.e. damage to your vehicle caused by an accident).  Liability, uninsured motorists, medical payments, and all other coverages on the policy are not changing. 

This change will not impact the large majority of households.  The important thing to remember is to call us or Progressive to report any licensed household member changes. 

Should you have any concerns or would like to explore other options (remember that we are independent and do provide coverage thru a variety of providers), please contact us.  We're happy to hear about your unique situation and discuss how this coverage change may or may not impact you.