Ontario couple ‘frustrated’ insurance claim was denied following a serious collision involving their son

If a licensed driver lives in your home, experts say they should be listed on your auto insurance policy to avoid potential coverage issues. Pat Foran explains

A couple from Ontario is shocked after their vehicle insurance claim was denied following a serious accident involving their son.

“I feel very frustrated and very disappointed that this has happened to us,” said Mohamed Mirza.

Adam Mirza temporarily moved in with his parents Mohamed and Vivi Mirza in Markham.

He had borrowed his parents’ car to go to a medical appointment and was involved in a serious car accident.

A claim submitted to their insurance company was, however, denied as Adam was not included on his parents’ automobile insurance policy.

“We agree we didn’t declare our son moved in here. He was originally living in Ajax when we bought the car,” said Mohamed.

The Mirzas appealed the decision, but their insurance company, Wawanesa, shared with them in a letter: “You failed to disclose to your broker or Wawanesa that Adam operates the vehicle with your permission and lives in your household. As such, your right to recovery is forfeited and your claim is denied.”

The Mirzas told CTV News they have a loan for the 2019 Mitsubishi RVR Se that was involved in the accident and still owe $26,000. They are now making monthly payments for a vehicle they no longer have.

“What is wrong with allowing your child to use your car for just a doctors’ visit,” Vivi asked.

According to the Insurance Bureau of Canada (IBC), all licensed drivers in a household should be listed on your insurance policy.

“Anyone who is a regular and frequent operator of your vehicle should be listed on policy,” said Anne Marie Thomas, the director of consumer and industry relations with the IBC.

“Whenever there is a significant change, even though you may think it’s not a significant change... from an insurance companies perspective, it could be a significant change” Thomas added.

As for the Mirzas, they told CTV News their other vehicle insurance and home insurance have since been cancelled by Wawanesa and they had to sign up with a different insurance company.

The couple also told CTV News they are devastated that they still have to make monthly payments on a vehicle they no longer have, adding they feel they should have received at least partial payment for their written-off vehicle.

“We seem to be losing money constantly. We are dishing out and we are left with the liability of a car loan and no settlement from an insurance company,” said Mohamed.

If you lend your car to a family member or friend who doesn’t live with you, you lend your car and you lend your insurance. If they get in an accident, your premiums could increase and you’ll be responsible for the deductible and any claims.

With files from CTV News’ Farah Chandani