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Car Insurance - Cancelled by State Farm?

Car Insurance - Cancelled by State Farm?

Old Nov 30th 2015, 11:36 pm
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Default Car Insurance - Cancelled by State Farm?

Hi all,

Hoping for a little guidance.

I moved over the US (Delaware state) eight weeks ago. I originally got insurance with State Farm for my my vehicle, I have a UK license and a state learners permit. State Farm originally agreed to give me six months to pass my full license (no problem there), the DMV set a date of January 4th to sit my practical exam.

The issue arrived today, in the form of a letter from State Farm who are now 'cancelling my insurance' this Friday as;

"The risk is ineligible due to not being licensed 3 years. An inexperienced operator cannot be bound Mutual unless there is another application taken at the same time qualifying them for Mutual."

Firstly I don't really understand what being 'bound mutual' is and secondly, has anyone else had issues like this/ knows a company who is ex-pat friendly as I'm clearly not going to have three years experience?

Thanks in advance!
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Old Dec 1st 2015, 12:12 am
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Default Re: Car Insurance - Cancelled by State Farm?

I think it means you could be added to a policy alongside someone else who meets the requirements, but you cannot be insured on a stand-alone basis.

BTW You need to (use your best efforts to) pass the required tests within the time period specified by the state of Delaware; the period allowed by the insurer is largely irrelevant. If you caused a major accident and/or killed someone the insurers would drop you like a hot brick if the police charged you with driving without a valid license because the specified period for obtaining a license had elapsed.

Last edited by Pulaski; Dec 1st 2015 at 12:16 am.
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Old Dec 1st 2015, 12:45 am
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Default Re: Car Insurance - Cancelled by State Farm?

It seems very odd that they insured me then decided to change their mind. It also only gives me four days to past my test or find alternate coverage.

Thanks for the heads up, I've checked and Delaware state allows me six months as well so they correlate.
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Old Dec 1st 2015, 12:54 am
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by GeneGenie87 View Post
It seems very odd that they insured me then decided to change their mind. It also only gives me four days to past my test or find alternate coverage. .....
Like all insurance sold through a broker, it is valid subject to underwriting by the insurer. Unfortunately your policy was found to be outside the terms of the insurers risk profile.
.... Thanks for the heads up, I've checked and Delaware state allows me six months as well so they correlate.
Not sure where you got the "six months" from, because Delaware Division of Motor Vehicles says 60 days:
Drivers From Other Countries.

Non-resident drivers over the age of 16 years who have a valid driver license issued by their home country may operate motor vehicles upon the highways of this State when their license is in their immediate possession. Sixty days after the non-resident driver becomes a Delaware resident, he/she must apply for a Delaware driver license. ....
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Old Dec 1st 2015, 1:01 am
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Default Re: Car Insurance - Cancelled by State Farm?

They went to the underwriter before offering the quote due to the 'unusual' circumstance.

Even worse news then - I was told by the counter staff in the DMV, thanks for the heads up!
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Old Dec 1st 2015, 1:14 am
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by GeneGenie87 View Post
..... Even worse news then - I was told by the counter staff in the DMV, thanks for the heads up!
Don't stress too much about that, the issue is very common for new immigrants, so long as you have insurance and can show (carry paperwork) you are using your best endeavors to get your state license ASAP it is highly unlikely that the police would ticket you for not having a DE license (a little) beyond the 60 days - after all it is notoriously hard to prove when the 60 day clock even started! Just be sure to drive extra cautiously. In fact you're lucky it's 60 days, in some states it's 30 days. .... In California it's 10 days!

That said, please do not even think of driving without insurance, the US civil legal system can turn an uninsured accident into a world of hurt - upto and including bankruptcy!
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Old Dec 1st 2015, 1:41 am
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Default Re: Car Insurance - Cancelled by State Farm?

This is where the AIG Inbound USA program comes into it's own. They will find car insurance for you and we saved the cost of the program ($450ish) on the first 6 months car insurance for our 2 cars -based on quotes we had at first tried to organise ourselves.
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Old Dec 1st 2015, 2:16 am
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Default Re: Car Insurance - Cancelled by State Farm?

I just called Geico, and got insurance with no caveats at all. Lizzyq has been on the insurance for a year, and has only just got her Pa. licence.
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Old Dec 1st 2015, 5:40 pm
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Default Re: Car Insurance - Cancelled by State Farm?

30 days in Alabama! It was a lot of FUN! The clock was ticking from the moment we landed!

To Pass our test sort car purchases out etc.
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Old Dec 1st 2015, 7:14 pm
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by steveq View Post
I just called Geico, and got insurance with no caveats at all. Lizzyq has been on the insurance for a year, and has only just got her Pa. licence.
I wasn't a PA resident for most of that time, it must be said, but was still much relieved not to fail my skills test, that would have been truly embarrassing.
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Old Dec 1st 2015, 7:23 pm
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by lizzyq View Post
I ..... was still much relieved not to fail my skills test, that would have been truly embarrassing.
I'd be reasonably certain that if you had any issue taking a US road test, it would be a surfeit of skills, not any deficiency or shortage!
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Old Dec 1st 2015, 10:30 pm
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by Pulaski View Post
Don't stress too much about that, the issue is very common for new immigrants, so long as you have insurance and can show (carry paperwork) you are using your best endeavors to get your state license ASAP it is highly unlikely that the police would ticket you for not having a DE license (a little) beyond the 60 days - after all it is notoriously hard to prove when the 60 day clock even started! Just be sure to drive extra cautiously. In fact you're lucky it's 60 days, in some states it's 30 days. .... In California it's 10 days!

That said, please do not even think of driving without insurance, the US civil legal system can turn an uninsured accident into a world of hurt - upto and including bankruptcy!
...or death, whichever comes first!

Also, less importantly, the penalty for no insurance is usually very high - up to and including seizure of the vehicle at the side of the road.
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Old Dec 1st 2015, 11:25 pm
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by Guindalf View Post
...or death, whichever comes first!

Also, less importantly, the penalty for no insurance is usually very high - up to and including seizure of the vehicle at the side of the road.
That happens in the UK now too, or having no MOT
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Old Dec 2nd 2015, 2:18 am
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Default Re: Car Insurance - Cancelled by State Farm?

Originally Posted by GeneGenie87 View Post

The issue arrived today, in the form of a letter from State Farm who are now 'cancelling my insurance' this Friday as;

"The risk is ineligible due to not being licensed 3 years. An inexperienced operator cannot be bound Mutual unless there is another application taken at the same time qualifying them for Mutual."

Firstly I don't really understand what being 'bound mutual' is
State Farm offer insurance through two separate underwriting companies, one called Fire and Casualty, and the other called Mutual. Mutual is a lower risk pool with lower rates; we were automatically switched to Mutual after having car policies/ licenses for 3 years, and our premiums dropped by many hundreds.

Perhaps ask if you can be covered under their high risk Fire and Casualty arm until you get your license (and can switch then elsewhere, as it'll be expensive). They covered me under it in Arizona when we arrived, but it was only for a few weeks as the mandate for getting your license in AZ is 'immediately'.
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Old Dec 2nd 2015, 8:07 pm
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Default Re: Car Insurance - Cancelled by State Farm?

American Family gave me quote for half the cost of others when I moved here 7 years ago. It may be different now, but they took my UK driving history into account.
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