Garaging Address

Garaging Exceptions

Generally, vehicles garaged at two different addresses and drivers in two different households are unacceptable. However, UW does make exceptions.

In order for vehicles primarily garaged in another location or state the following must be true:

1. There is at least one vehicle in a state where we insure. 
2. There is more than one vehicle on the policy.
3. There is more than one driver on the policy.
4. AND they qualify for one of the exceptions below:
   • Named Insured’s spouse or unmarried child is away at school (on or off campus)
   • Named Insured’s spouse or unmarried child is in the military
   • Named Insured has two different households (one permanent & one vacation)
   • Drivers who live at different addresses, but all vehicles are garaged at one place
   • In the process of divorce and the vehicle is still considered community property

Note: Vehicles that have a principal out-of-state garaging location in Michigan or Canada, are NEVER acceptable

Student away at school:

• If IN-state, call in to have garaging address updated to correctly reflect address PRIOR to bind
• If out-of-state, select yes for vehicle garaged at primary address and continue with bind. Post bind please reach out to Customer Care to notate proper out-of-state address. 

Invalid Zip

If you get a message that shows a zip isn't working it could be for a few reasons:

• We don't insure in that state
• It's a postal code only zip code
• It's a rural zip code

If it is the bottom 2, you can still quote the customer but will need to use an alternative zip code. You can go here and enter the zip code. Once you do that it will give you an alternative zip code. 

Here is an example of a PO Box only zip code, 30003 and you can see below that you would actually use 30071.

Here is an example of a rural zip code, 78779. Here you would use the next largest zip code, in this case 78704.

Vehicle Ownership / Insurable Interest

To determine if a vehicle is insurable, we need to know who the owners are. The owners of the vehicle are those who:

• have their name physically appear on the legal title, or 
• who legally possess an auto loan or lease on the vehicle

Ownership is important because we will indemnify the owner of the vehicle in the event of an accident. We have guidelines in place that determine if a vehicle is insurable based on who the owners are. We want our named insured to have insurable interest in each vehicle being added to the policy. 

To identify the owners, ask an open-ended question such as: 

Who are the titled owners of your vehicles?

Who appears on the title of the vehicles you are looking to insure?

Some customers may say that the bank still has the title. We want to know who will be on the title once the car is paid off.

**With Elephant, whether the vehicle is financed or not affects premium, so it is important to accurately report this information up front. If you list the vehicle as "owned" and then have to call in to add a lienholder, the premium can change post bind.**

All States Except Maryland

In order for Elephant to insure a vehicle in every state BUT Maryland, it must be owned or co-owned by at least one of the following:

• the named insured
• the spouse of the named insured
• other residents of the named insured's household (family, friends, roommates, significant others, etc.)

When adding a vehicle that is exclusively owned by someone other than the NI or their spouse, you must probe to find out where the owner lives full-time.

• They must live with NI full-time.  
• If they split time between residences, you must call Underwriting for approval
• If they live somewhere else full-time they are not eligible

If the vehicle is titled in a resident's name or co-owned by anyone other than the NI or their spouse, that person must be rated or excluded!

There is a REQUIRED ADVISORY for a vehicle that is exclusively owned by a resident:

"We want everyone to have appropriate coverage. If the owner of the vehicle moves out, you would need to promptly notify us."

Maryland 

In order for Elephant to insure a vehicle in Maryland, it must be owned or co-owned by at least one of the following:

• the named insured
• the spouse of the named insured

In Maryland, we cannot insure vehicles that are exclusively owned by someone other than the named insured or their spouse.

Vehicle Use

Business Use

If a vehicle is EVER used for business use (even if this isn't the primary use) you would select "business use." Business use trumps primary usage.

Since Elephant does not write commercial policies,  there are several types of business use that are unacceptable, per our UW guidelines. To determine if a vehicle can be covered, the business use questions must be asked anytime the customer mentions using their car for a business purpose:

Rideshare

In Georgia / Illinois / Indiana / Maryland / Ohio / Tennesse / Virginia...

It is acceptable for a customer to use their vehicle for ridesharing or delivery if they accept "jobs" on an app-based platform. This is important because it helps us separate when they use their vehicle for business versus personal use.

In Texas...

Ridesharing on or off an app is unacceptable.

Drivers To Include

The following two questions must be asked:

Is there anyone else who operates any of your vehicles (two or more times a month)?

Are there any family members who live in the household between 16-25 years of age?

Knowing Who to Add to the Policy

The two risk questions on the driver's page will help you figure out who needs to be added to the policy as a driver. Remember that additional owners of the vehicle also need to be rated/excluded. The following individuals should be rated/excluded (state permitting) as drivers:

• Anyone who drives the vehicle two or more times a month
• Any resident family member between 16-25 years of age
• Spouse of the NI
• Co-owner/owner of the vehicle
• Individual showing as a driver on a claim of the NI or their spouse within the past year

• The following individuals should always be rated or excluded (state permitting):

   

  Always probe to see if a household relative has ever been licensed or if they currently hold a permit.

  Q. Why is the driver showing up as "listed?"

  A. Any individual who needs to be added to the policy, but who doesn't have a license will show up as "listed." This will also happen for never-married children of the NI who are under the age of 19 with a permit. Listed individuals will not affect the rate.

  Anyone who is rated could be excluded, except in VA and IN. 

Classifying Relationship to Insured

Some family members of the named insured are difficult to label, specifically the following: in-laws, grandparents, or step family. So, what's the correct way to do this? With a limited amount of choices, a simple way of looking at these family members and how to input their relationships is to think of them without their step, grand, or in-law titles. Simply drop the prefix for stepsister, and you're left with 'sister'. The same goes for selecting 'father' for grandfather, and 'mother' for mother-in-law.

Students 

If a student's primary address is with the NI, even if they are "away at school," they must remain rated or excluded on a policy. In this case, they are considered to be a part of the household.

Separated Spouses

In our exclusion states (TX, MD, IL, & TN) we should always rate or exclude the separated spouse; they should never be left off of the policy. We would list the marital status of the NI as "separated" and the separated spouse's relation to the NI as "spouse."

In our non-exclusion states (VA & IN) as well as OHIO, if ALL of the below qualifications are met, then we would not need to include the separated spouse on the policy:

1. NI indicates that they are separated
2. Spouse lives in a different HH
3. Spouse does not drive any of the vehicles
4. Spouse is not an owner of any of the vehicles

NOTE: If the separated spouse had an accident within the past year, they would either need to be rated or excluded. 

Incarcerated or Out-of-Country Spouses

We would treat incarcerated or out-of-country spouses similar to how we treat separated spouses.

In our non-exclusion states (VA & IN) as well as OHIO, if ALL of the below qualifications are met, then we would not need to include the separated spouse on the policy:

1. NI indicates that their spouse is incarcerated/primarily resides in another country.
2. Spouse does not drive any of the vehicles.
3. Spouse is not an owner of any of the vehicles.

In our exclusion states (TX, MD, IL, & TN) we should never leave the spouse off of the policy regardless of their incarcerated status or out-of-country residency.

• In our EXCLUSION STATES (TX, MD, IL, & TN) we should always exclude the incarcerated spouse.
• In our EXCLUSION STATES (TX, MD, IL, & TN) we should always rate OR exclude the spouse if they primarily reside out of the country.

NOTE: The only exception would be if they have never had a license or permit as they would only be listed on the policy.

Can the NI and their spouse each have their own policy?

If they live in the same HH, then the answer is NO.

Underwriting has rules about multiple insurance policies in the same household. 

The following risks are NOT acceptable:  

   2+ private passenger automobile insurance policies written for the same HH, with the following exceptions:   

a) children who own their own vehicle; 

b) unrelated residents/roommates; or 

c) policies for antique vehicles or vehicles we do not insure because they are unacceptable

Permitted Drivers

In order for an individual with a permit to appear as ‘listed’ in the system, the following must apply:

• Child, ward, adopted child of the insured
• Never married
• Under 19 years old

If the individual does not meet all of these qualifications, they will be 'rated' on policy.

Per Underwriting, before binding, we MUST collect the permit numbers of all permitted drivers that are rated or listed. If we cannot collect this information, we cannot bind the policy.

What do I put for age first licensed if the customer has a permit?

You would enter the customer's current age.

Disabled Children

If the customer has a disabled child in the household between the ages of 16-25, you will NOT be required to rate or exclude them. You will only need to notate the policy with this information.

License Status

If you have a driver on the policy that comes back with an unacceptable license status after running reports, you can send in proof to underwriting@elephant.com Proof would be a letter or screenshot from the DMV that shows valid license with a timestamp. Please include quote # and name/DOB in the subject line. After submitting email you will receive a reply with approval status, if not approved, what else is required will be included. 

** IF the driver can be excluded, then you can proceed with the policy. Otherwise, this license status would be an unacceptable risk.
* IF the driver can be excluded, always exclude the driver.

License Status Definitions

Valid: their license is current and up-to-date with no restrictions; they are legally able to operate personal vehicles.

Expired: their license is not currently active. 

Suspended: the driver is temporarily unable to drive due to repeated violations of traffic laws or other offenses, and the license is typically suspended by an administrative traffic court or criminal court. 

Restricted/Occupational: the customer is only able to drive to and from certain places, such as work, or during certain hours; this could be due to a DUI/serious traffic violation, vision limitations, etc.

Foreign/International: the customer has a license that is valid in another country; we can write it in all states.

Non-licensed: never had a license or permit. 

Surrendered: the customer had a license before, but has given it up for good. 

Revoked: the customer had a license before, but the license was permanently taken by the state or local governing authority.

Permit: the customer has a learner’s permit.

Provisional: temporary license in MD. We can write it. Also in VA for driver’s under the age of 19 (restrictions include: one non-family passenger in the first year, prohibits driving between midnight and 4am, & cell phone use).

Ineligible Out of State Licenses

We can not write a policy if they have the following out-of-state licenses in each of the listed states. 

**If you have a license from one of the states listed under Texas, you will receive an error message, followed by a request for documents. Once the requested documents are sent in, Sr. Underwriters will review the documents. This process takes 15 business days and can't be expedited for any reason. You will not have access to a price until the documents are approved.**

California Licenses

We will always receive a "No Response" Error for California licenses. Do NOT attempt to pull the record again. 

If there are any manually entered tickets, do not delete them. Just advise: 

"Please be advised that our Underwriting Department will run your Motor Vehicle Reports after your policy start date. If for any reason there are any updates to your policy, our Underwriting Department will notify you in writing. Do you have any other tickets that we have not discussed today?”

NOTE: Enter in license information as normal, but make sure to use the MVR advisory above.

US Territories

When asking age first licensed in the US, we can give credit for driving history in the US territories (American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands).

These territories show up as license states. 

NOTE: If a customer has a foreign/international license we would follow the process outlined HERE. 

Matricula ID Card

A Matricula ID Card is just another form of an ID card, so this would be an unacceptable license.

Out-of-State License Military Exception

Normally, if a driver has a license from an unacceptable state, then that driver would be an unacceptable risk. However, Underwriting makes an exception for military members. If the NI or their spouse are active military, then it would be acceptable for them (along with their unmarried children) to have an unacceptable out-of-state license.

This is an exception to the rule. If the customer has an out-of-state driver's license in one of our unacceptable states and is not in the military, this would be an unacceptable risk.

Based on their active duty military occupation status, Policy Center knows when someone qualifies for the exception, and it will accept their real information. 

Foreign License

Follow these steps to add a customer's foreign/international driver's license:

1. Select "Non-US" as the customer's license status
2. Select the customer's age they first started driving in the U.S.
3. Input the following for license number: 00000000 (any number of zeros is acceptable)
4. MVR will not be able to be retrieved for this driver 

Coverage Outside the US

Coverage Extending to Canada (Yellow Cards)

Elephant covers customers driving anywhere in Canada. However, to show that the vehicle is covered under the minimum liability limits required by Canada, a driver must obtain a Canadian Yellow Card. If the policyholder is driving a rental vehicle in Canada, the rental company is responsible for issuing the yellow card.

Why Does Canada Need a Yellow Card?

If an insured is involved in an accident or stopped by a police officer in Canada as a result of a traffic violation, they will be considered by Canadian authorities to be driving in Canada with the appropriate amount of liability insurance. Though not required in every province, a U.S. driver can prove to the police that his or her insurer has filed for this by presenting a Yellow Card.

Coverage Extending to Mexico

• Indiana and Tennessee: Coverage will not apply to an insured vehicle.
• Virginia: Coverage will apply to an insured vehicle within 25 miles of the border.
• Illinois, Texas, and Maryland: Coverage will apply to an insured vehicle within 75 miles of the border.
• Only comprehensive and collision coverage will apply to physical damage in Mexico. There is no coverage for liability or additional coverage.
• The named insured must stay no longer than 10 days.
• If a customer is driving further than the above limits, they will be required to purchase temporary insurance from the country of Mexico (this is often offered at border security).

US Territories

Coverage in US Territories is the same coverage as it is in US states.

Effective Date

• For customers who are not currently insured, select the next day as of 12:01 AM for the effective date. 
• The effective date cannot be set more than 60 days in the future.
• Elephant does not backdate at new business for any reason.  
• The garaging address on file must match where the NI will be keeping their vehicle when the policy goes into effect; we cannot start a policy in a new state or at a new address until they're living there. 

Same Day Bind

There are only six reasons sales/service would set up a policy with a same day effective date. According to our compliance manual, here are the reasons:

• DMV-related (going to DMV to register a car, needs a SR-22 to reinstate license at DMV, etc.)
• Purchasing a new vehicle from a dealership today.
• To prevent a lapse of insurance.
• Police impounded a vehicle and require insurance to release.
• Lienholder repossessed vehicle and requires insurance to release.
• Customer is purchasing a Texas auto policy and requires insurance to get a state inspection

If the customer wants a same-day bind for a reason not mentioned above, the earliest the policy can start is 12:01am the next day. 

The following question must be asked by the agent prior to binding if the effective date is for the same day:

"Have you, any drivers on your policy, or any vehicles on your policy been in any accidents today?"

If the answer is yes, you may not continue with bind.

Early Bird Discount

In order to proactively apply Early Bird, we must first make sure the customer qualifies. In order for them to qualify, they must be currently insured. They must be able to maintain their current coverage for at least 5 days or more till their policy starts with us.

The customer must PURCHASE the policy, 5 days prior to the effective date. We do not go by the quote date.  

Assigning Vehicles

**This is rate impacting and we have seen an uptick in premium changes on the back end when Policy Holders call in and provide different answers when they are asked these questions**

There are 2 potential questions regarding vehicle assignment, each vehicle, and the driver must be assigned according to primary operation. Both questions need to be asked open-ended: 

For Primary Vehicle, on the driver's page, it should be asked "Which vehicles does [driver] primarily operate?"

You will see the vehicles listed out again before you get to the quote, if there are more than one vehicle and/or driver and this question wants to know, "Who operates [vehicle] the most?"

Both questions may seem similar but in fact, can vary. An older couple for example may have 2 vehicles, a Ford and a Toyota. They both drive the Toyota the most often, but the husband drives the Toyota the most and he would also drive the Ford the most. 

Example: Looking at the image below, the following are ways you can ask the assignment questions:

Who operates the Ford most often?

Who operates the Honda most often?

Then:

If you were going to drive one of the vehicles, which would you drive most?

If Melinda would drive one of the vehicles, which would she drive most?

Assigning Accidents

Once CLUE is run you will come to a page that lists all incidents by the driver. If there are unassigned accidents they will show at the bottom of the list. You MUST expand that list. All accidents must be properly assigned or Underwriting will assign them post-bind and could cause a rate change. 

• Not all drivers will match exactly from the quote from the CLUE report due to last name changes, capitalization, or different spelling. These will need to be properly assigned. 
• If any claim is left as "unoccupied" or blank it needs to be assigned to the policyholder at the time of the claim. 
• ALL claims within 1 year MUST be assigned to a rated or excluded driver due to Elephant's Underwriting guidelines. See here for drivers required on policy.  If you do not already have this person listed you must list them to either rate or exclude. If wanting to exclude, please see here.
• If an accident is assigned to a driver and it is changed to "Other Driver" it will flag an Underwriting flag on the back end. Underwriting will properly assign the accident, potentially causing a premium impact, and then notify the Policyholder with an AUD (Adverse Underwriting Decision.)

Failure to complete any of these steps may result in rate/policy change post-bind.

Underwriting Eligibility

There is no longer a specific number of incidents that can make a policy or driver unacceptable. 

Instead, each accident or ticket is assigned a point value, and each state will have a maximum point limit that the NI must stay under in order to be insured with us. 

Therefore, there is no way to determine if someone will be eligible unless you run reports. At this time the error message is not specific to this, it will just be the generic error message advising you to call in. 

Excluding Drivers

Elephant offers customers the ability to exclude drivers from the policy that would otherwise be rated. A named driver exclusion excludes the driver from coverage under the policy, meaning that ZERO coverage will be provided if they are operating the vehicle at the time of a claim. An exclusion will also keep the individual from affecting the named insured's premium.

To exclude a driver you will need to add them and then select yes for would you like to exclude this driver. This would mean that the excluded driver would NOT be covered under any circumstances even in the event of an emergency. You must advise the PH of this.

When you exclude a driver, a Named Driver Exclusion form (NDE) is automatically sent to the email on file. This form must be signed and returned prior to bind. The system will tell you if the form had been received. Please see the walk-through below for instructions. 

In order to exclude you MUST put the relationship to the policyholder as a family member and the license status as VALID.  

In Ohio, the named insured's spouse will also need to sign the form and it must be sent to 2 separate emails if they are being excluded from coverage.

Named Driver Exclusion (NDE) Walkthrough

In the event that you do exclude a driver, there will be a waiver that needs to be signed and returned prior to binding, they will be sent electronically through Docusign for the customer to sign within a certain time frame. Elephant handles this process so you all do not have to chase these down. You can refresh your page after the client submits the waiver and it will show you if the NDE has been signed. Here is a breakdown of what the process looks like:

Adding Financial Responsibility

You can now add SR-22s or FR-44s pre-bind. You will find this at the bottom of each driver's page. 

Note: Financial responsibility forms are filed with the state within 24-48 business hours. 

• Elephant does not offer an SR-22 in Ohio.
• Elephant does not charge a fee in Illinois to file the SR-22. 
  • However, we require the insured to pay up front, in full, for the full policy term.

Limits by State

*This is the lowest limit that Elephant can offer. Do not advise this is the state minimum.

Income Loss in VA

Income Loss is a separate coverage in VA. It covers a customer when they are injured in a covered loss and are excused from work by a doctor. The coverage will apply if the customer is employed at the time of the accident. 

• It will provide $100 per week, but for no more than 52 weeks.
• If multiple vehicles are on the policy, it can be multiplied up to a maximum of four times.

Waiver Walkthroughs

For all required waivers, only the customer will receive the email for the docusign, and they must be returned within 7 days. 

UM

PIP

GA: Added on UM

What happens if they don't sign a waiver

Waiving all UM                                                (GA, IN, IL, TX, and TN) 

UM will be added to their coverages if the waiver is not signed.

Electing lower UM limits than Liability        (GA, IN, TN, MD, IL, and VA) 

UM will be amended to match the limits of liability if the waiver is not signed.

Rejecting PIP                                                    (TX)

PIP will be added to their coverages if the waiver is not signed.

Electing to carry Guest PIP Only                   (MD)

Full PIP will be added to their coverages if the waiver is not signed.

Electing to carry EUIM                                    (MD)  

EUIM will be removed if the waiver is not signed.

Rejecting Added-on UM                                 (GA)  

Added on Uninsured Motorist will be added to their coverages if the waiver is not signed. 

Note: Whether you are selecting reduced UM (similar to standard UM in our other states) or rejecting UM outright, they will need to sign a waiver.

Same Day Bind

Binding Restrictions

Binding restrictions are temporary guidelines often placed ahead of major weather events intended to help minimize Elephant's loss ratio in the impacted areas.

They may prohibit policyholders from adding certain types of coverage or increasing their limits, and they may bar new policies from being bound until after the adverse weather has passed. For new business, there will be a hard stop in place so no need to keep up with zip codes etc. 

While binding restrictions are active

First-party coverages are often among those that are restricted. Comprehensive, Collision, Emergency Roadside Assistance, and Rental Reimbursement all pay out to the named insured, and are considered first-party.

Getting Started

Free Look

Free Look is the period Underwriting can review new business policies for risks that were missed during the application process. 

• UW runs additional reports, and then reviews previous limits, lapses/years with last insurer, and other information provided on the application. 
• We can cancel a policy during the Free Look period.
• The free look period 45 days in MD, 90 days in OH, and 60 days in every other state.

If  UW decides that we need to increase the premium due to information discovered during Free Look, we sent the customer an Adverse Underwriting Warning. The AUW letter is mailed as a courtesy and gives the customer a 7-days warning before the premium is increased. Once the 7 days are over, and the policyholder does not provide any proof of information against what was discovered, then an Adverse Underwriting Decision is made, and the policy is amended. 

Adverse Underwriting Warning (AUW)

• Sent via email in all states
• This document is a courtesy warning emailed to policyholders to advise that there will be a change in their premium based on new information discovered by Underwriting. It will be information that conflicts with what was provided on the auto application. These are sent to the customer seven days before the change is made. Reasons for AUW:

• A policyholder's insurance history shows a lapse in coverage for any period during the past three years.
• Previous coverage limits are different than what is reported on the insurance application.
• Length of time with prior insurance is different than what was reported on the insurance application.
• Unacceptable risk.

Please note: With notice, the premium may be recalculated from the effective date of the policy as a result of an Underwriting decision, or coverage under the policy may be canceled during the free look period if your risk does not meet our Underwriting standards.

Adverse Underwriting Decision (AUD)

• Sent via mail in all states
• Mailed to the policyholder after the AUW once a change has been made to the policy based on new information discovered by Underwriting that conflicts with the information provided on the auto application.
•  If a policyholder calls to correct the issue after the change has been made, their total premium can be returned to the original agreed-upon amount. 
  • However, if there was a down payment associated with the change, it will still apply to their next invoice and all future invoices will be prorated to make up for the difference. Underwriting can send requests to redistribute the refund, as well as the Customer Care team leads or managers.
• In the event we need to reverse an Underwriting decision, agents do not have access to edit the previous insurance information on the Applicant page of the work order. They will need to contact leadership or Underwriting to have the page unlocked so the information can be updated. The only time agents will have access to this information is during a Rewrite New Term.

Coverage transfer to a rental vehicle

When a customer rents a vehicle, some or all of their Elephant coverages might transfer to the rental vehicle for a max of 30 days. Coverages only transfer while the vehicle is being operated by a driver insured on the policy. 

If the customer is renting for pleasure, the broadest coverage transfers.

If the customer is renting due to an accident/claim, the coverage of the specific vehicle being replaced transfers. 

What does the broadest coverage mean? This means the best or highest level of coverage available on the policy.

Example: Customer's policy has two vehicles: one with just liability and one with comp/collision. When they rent a vehicle for pleasure use, liability and comp/collision will transfer, since that's the highest level of coverage available.  

NOTE: Roadside Assistance and Rental Reimbursement do not transfer to the rental vehicle. 

General Guidelines

Vehicles  

• The rented vehicle must be acceptable under our UW guidelines

Timeframe

• Coverage will only transfer to a rental vehicle for a max of 30 days. After 30 days, coverage would no longer apply. A customer can turn in that vehicle and rent a different vehicle to restart the 30-day window.

Extra Coverages 

• Purchasing extra coverage should always be up to the discretion of the customer 
• Customers may avoid a deductible if they purchase insurance through the rental company

Claims/Accidents 

• Per the contract, if the vehicle being rented (for either pleasure or due to a claim) is damaged in an accident, we may not cover administrative fees, loss of use charges, etc.

In Canada 

• If the policyholder is going to be operating the rental vehicle in Canada, the rental company is responsible for providing them with a Canadian Yellow Card

Test Driving Vehicles at the Dealership

Typically the broadest coverage on the policy will transfer to the vehicle the policyholder is test driving at the dealership. The vehicle must still be acceptable under our underwriting guidelines.

Branded/Salvaged titles

Coverage for branded titles will be restricted based on when the vehicle was branded.

• Branded within the past year: No coverage
• Branded over 1 year ago: Liability, Uninsured and Emergency Roadside Assistance

When we pull a vehicle's title status, information is retrieved that shows whether the title has been branded. A branded title indicates a previously totaled or salvaged vehicle. These vehicles are high risk, low value vehicles that can result in large losses for the company that insures it. The following are reasons that a vehicle's title may show as branded: 

• Salvage
• Junk
• Rebuilt/Reconstructed
• Dismantled
• Flood
• Fire
• Hail

If your customer wants to dispute the information please advise that they can contact their local DMV.

Custom Parts and Equipment

How to Add CPE Coverage

The custom equipment field on the Vehicles page is an Underwriting question designed to discover unacceptable risks. The selection made on this page does not transfer to the quote page.

This does NOT apply any coverage.  (UW question only )

In order for a customer to have custom equipment coverage, their car would need to be covered by comprehensive and collision and the selection would need to be made on the Quote page.

This applies coverage!

Elephant CPE Limits

Each state has an allowable limit for custom equipment. If a vehicle has more than that amount of custom equipment, it would be an unacceptable risk. You could offer Answer Financial. This table outlines the state specifics regarding custom equipment:

Lift Kits

Vehicles with lift kits higher than 4 inches are unacceptable.

Exotic Vehicles

There are some vehicles that we determine to be "too exotic, expensive, or unique" to insure. The following list includes all of those vehicles that we consider unacceptable risks. Manufacturer-wide exclusions are in bold.

Unacceptable Vehicle Guidelines

Per our Underwriting guidelines, the following vehicles are unacceptable: 

• Vehicles that we determine to be too expensive, exotic, or unique. List on the previous tab.
• Vehicles used for:
  • Certain types of business use, including taxi, livery, and delivery/pickup services (see vehicle usage for rideshare exception & acceptable business use)
  • Lease or rental to others
  • Racing
  • Emergency services 
• Vehicles that have:
  • lift kits greater than 4 inches 
  • less than 4 wheels (ex. mopeds) 
  • more than nine passenger seats 
  • snowplowing equipment installed and are used for business purposes 
  • cooking equipment or bathrooms installed
  • too much custom equipment (more than $5,000 in VA / more than $20,000 in the other states) 
  • a branded title or severe incident indicator within the past year
• Conversion vehicles 
• Grey Market vehicles 
• Incomplete vehicles
• Vehicles that are not registered for street use 
• Commercial vehicles such as step-vans, panel vans, parcel delivery vans, cargo vans, or any other vans with cabs separate from the cargo area
• GEM, THINK, Micro-trucks, and other low speed vehicles that have a maximum speed less than 55 MPH

Antique Vehicles 

We offer personal auto insurance policies that insure our customers' vehicles for ACV, so when a customer has an antique vehicle, we may not be able to provide the coverage they need. It may be more beneficial for the customer if they insure their vehicle under a specialized antique policy. 

If a customer advises they have antique plates, a show car, or a restored classic car, advise that they may be more appropriately covered under a specialized antique policy. If the customer still wants a policy through us, make sure they're aware that the vehicle will be insured for actual cash value, meaning that additions and improvements may not be covered if the vehicle is restored.

Farm Use Vehicles

To determine if a "farm use" vehicle is an acceptable vehicle, we need to know if the vehicle is registered and tagged. If the vehicle is legally registered and tagged for street use with F-tags, that is acceptable. Unregistered farm use vehicles are an unacceptable risk. 

F-Tags

We will insure farm use vehicles that have F-tags. DMV issues license plates referred to as F-tags for registered farm vehicles. The registration verifies an active farm operation but allows for some personal use such as using the vehicles to attend church or school, to secure medical treatment or supplies, or to secure other household or family necessities.

Unregistered Farm Use Vehicles

We will not insure an unregistered farm use vehicle. Unregistered vehicles may be titled, but do not display a DMV-issued license plate and are not allowed on the road for personal use. The operation of these vehicles is limited to a 25-75 mile radius (state dependent) from the farm for farm-specific supplies. A vehicle may be left unregistered to avoid the auto insurance requirement (most farm policies will cover liability). 

Vehicles with a simple "Farm Use" plate are an unacceptable risk. 

Police Vehicles

When police vehicles or cruisers do not trigger an unacceptable banner, agents are required to probe further around the potential custom equipment on these vehicles to help determine if the vehicle is or isn’t acceptable.

If the custom equipment has been removed and the vehicle usage is acceptable, we can add the vehicle. If not, the vehicle is an unacceptable risk.