Michigan motorists gear up for hike in car insurance read more
How Your Car Insurance Coverage Can Change Automatically
July 28th, 2010
Car insurance quotes are made to attract potential clients. Car insurance coverage is what those quotes are about, and it's up to the client to make sure that all aspects of the insurance contract made with an insurer are maintained as prescribed. Any attempt to avoid abiding by the contract's stipulations could prove expensive.
There are instances when an insurer will automatically change provisions of the original contract. Switching carriers is a process that has certain responsibilities for the policy holder. Some people consider that the end time of an insurance policy sufficiently closes out the contract. Not necessarily so. If an insurer isn't informed ahead of time that a policy holder wants to cancel his coverage, the insurance company may assume that the lack of a premium payment signals a bad debt and can forward that information to credit bureaus. This could play out as a canceled policy, which would be picked up by any new insurance company. That insurer would be in position to either hike its car insurance quotes or refuse to offer coverage.
Don't get caught up in such a potential nightmare. Let your current insurer know what's coming-make sure the timing is right and your new policy start coincides with the old policy's demise.
Adding a new car to your coverage is not handled the same by all insurance companies. Some firms provide automatic coverage for the extra car, provided they get notification within 30 days. Other insurers don't issue automatic car insurance coverage, leaving the possibility that a policy holder might need to purchase separate coverage for the new vehicle. Whatever changes are made with car ownership, make sure to immediately notify the insurance company and find out what must be done to satisfy your obligations as a policy holder.
A large number of insurance companies won't raise premiums following a single accident by a policy holder. But there are other situations that affect premium costs for everyone. Insurance companies have a tendency to spread the cost around. Buy a sports car when you turn 50, and expect to pay at least some of the bill for a teenager who drives the same car. You might live in the wrong state. Minimum car insurance rates differ from state to state. If you live in a no fault state, you could be paying more than somebody living in a tort state.
Pay attention to the deductible contained in your policy. Lower deductibles mean higher premiums for insurance companies, and the companies are eager to keep them low. A higher deductible can substantially lower premiums.
