When a wildfire is approaching, can you make changes to your current auto insurance policy?
The answer is yes but on Monday, the California’s State Insurance Commissioner said some insurers are illegally imposing a ban on writing or adjusting existing policies for consumers in areas where fires are burning across California.
According to industry experts, comprehensive auto insurance is what covers your vehicle in the case of a fire, not your homeowner’s insurance. This could lead to consumers upgrading their auto insurance policies when fires are threatening their homes.
On Monday, the California Department of Insurance said their office has received reports from consumers and insurers that several insurance companies have imposed or are imposing a moratorium on writing or adjusting existing policies in areas of California where fires are burning.
According to California’s Insurance Code, this practice is illegal as insurers must offer policies and coverage options to all drivers who qualify with good driving records.
The Department of Insurance said any insurance restrictions in place must be stopped by insurers, otherwise, companies will face fines and penalties for violating state law.
If you experienced an insurer denying changes or adjustments to your policy in light of a fire burning or threatening your area, the State Insurance Commissioner’s office wants to hear from you.
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