9is question was answered based upon current rules, regulations & statutes in effect on March 5, 2020
We have a client that has both a personal auto policy and a business auto policy with us. The insured backed into a snow bank and caused damage to the truck that is on the commercial policy. They are trying to weigh which would be a better choice…to just pay for the damage themselves, vs. incurring any surcharges. I had explained that surcharges don’t get applied to commercial policies, but that I think the surcharges would follow the license and get applied to the personal policy most likely. Other account managers here don’t think either policy will get the surcharge. Do you have an answer on that?
Irene Morrill: An accident occurring in a vehicle insured under a BAP is not subject to surcharges. A BAP depending on number of vehicles and premium size can be subject to experience rating.
However, If the same company insures both then they will “know” the driver had an accident and personal auto policy premium will change on renewal due to “tier rating’
Or, if the personal auto carrier ever asks for renewal application and asked about “accidents” that the person would have to “fess up” …but it still is NOT an SDIP thing …it will only change the tier or way the personal lines carrier looks at the client.
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