DON’T FORGET TO RENEW YOUR LICENSE—IT MAY VOID YOUR INSURANCE

 If you believe the commercials, insurance companies simply want to treat their customers fairly and to do the right thing.  But, when you make a claim, all that changes, as Lisa and Shane Smith recently found out.  The Smiths bought an insurance policy from Safe Auto covering a 2001 Ford Escape, with both of them listed as drivers.  Unfortunately, the insured vehicle was damaged in an accident while being driven by Mr. Smith.  The accident occurred on July 4, 2003, at which time Mr. Smith’s license had expired—his license should have been renewed on or before June 20, 2003, two weeks prior to the accident.  When the Smiths made a claim for the collision coverage to repair the vehicle, the insurance adjuster noticed that the accident report indicated that Mr. Smith’s license had expired, and denied the Smith’s claim on that basis, even though Mr. Smith renewed his license on July 7, 2003, three days after the accident, and even though Ohio law allows a driver to renew a license, without penalty, within six (6) months of its expiration.  Now, if Mr. Smith’s license had been suspended for drunk driving, or for getting too many tickets, it might seem “right” and “fair” for Safe Auto to refuse to provide coverage.  But, when a person who has paid for insurance coverage innocently forgets to renew his or her license, it is simply not “right” or “fair” for the insurer to deny coverage.  The Smiths were forced to file a lawsuit to try to get the coverage they paid for, but, unfortunately, the Court of Appeals for Lucas County held that Safe Auto could deny coverage to the Smiths. See Smth v. State Auto  

 So, make sure you renew your license; because a ticket may not be the only consequence—you may find out that you, like the Smiths, are not entitled to the insurance coverage that you bought and paid for.