Missouri Gov. Holden Urges Auto Insurers Not to Surcharge Returning Soldiers

Missouri Gov. Bob Holden urged Missouri’s auto insurers to avoid surcharging or denying coverage to soldiers who return from active duty unless their driving records or other criteria justify that decision.

Auto insurers commonly classify drivers as high risk—and charge higher rates or turn down applications—if they have not maintained continuous insurance coverage on their autos and are seeking a new policy. Such interruptions in coverage usually accompany losses of driving privileges for moving violations.

In 2001, Sen. Doyle Childers of Reeds Spring, Mo., sponsored and Holden, a Democrat, signed Senate Bill 151, which prohibits such actions against soldiers who have not been driving because of active military service—but only in narrow circumstances.

“We are urging insurers to follow the spirit of the law—and act as good corporate citizens—by waiving any requirements on continuous coverage for soldiers returning to civilian life,” Holden said in a statement. “Many of these soldiers simply stored their cars and cancelled their policies when they began full-time tours of duty to Afghanistan, Iraq and other sites in the U.S. or overseas.”

If returning soldiers do see a surcharge, Holden advised that they—or their agents—contact the Missouri Department of Insurance (MDI) to verify that the action is legal.

SB 151 generally protects soldiers against higher premiums if the insurer uses separate corporate subsidiaries for covering substandard drivers, according to MDI Director Scott Lakin. However, the legislature removed provisions that would have prohibited higher premiums within the same company if coverage is not continuous.