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Have a New Mortgage or Car Lender? Don’t Forget to Tell Your Insurance Agent

People usually let their insurance agent know about big life changes like starting a business or having a baby.

But there are other instances that slip under the radar. One of the most common is when changing mortgage or auto lenders.

With a few exceptions, your insurance company will typically issue a check to both you and your lender when there’s a claim. If the wrong lender is listed, it can cause delays when it comes to processing your claim.

“Problems can arise when a Customer doesn’t tell his or her Agent about a new mortgage or auto lender,” says Jackie Tirpak, vice president and claims manager, Illinois Branch, at Erie Insurance. “They can also happen when a Customer doesn’t let an Agent know their home or car is paid off—in that case, the lender will stay on the policy year after year.”

And that can ultimately lead to complications when it comes time to pay a claim. “At ERIE, we aim to settle a claim as quickly as possible,” says Jackie. “We’re obligated to issue a check to the name listed on the policy. When the information isn’t correct, there’s usually a delay because we have to stop the check or get it back before issuing another one.”

Most mortgage and auto lenders require proof that they’re listed as insureds on your policy. But things can fall through the cracks at times. That’s why it’s always best to let your insurance agent know if you change your mortgage or auto lender. (Another sticky situation can happen when your marital status changes and an ex-husband or wife is still listed on the policy.)

Talk to an insurance professional like an Erie Insurance Agent about an annual review. He or she can get your policy up to date and help you bridge any coverage gaps.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.