How To Fight A Car Insurance Policy Cancelation
Car insurance rates seem to be increasing, so when someone finds the cheapest car insurance rates, the inclination is to do all that can be done to hang on to them. A client might receive a notice of cancellation of a car insurance policy, and assume that there is no defense. This is an incorrect assumption, and there are steps that one can take to fight a car insurance policy cancellation.
The first step is to read and understand the terms of the car insurance policy. Each company has different policies and procedures on how to contact or dispute situations that might arise, so it is important to check the process for each particular provider so as to not lose an argument based on method of filing. Generally speaking, any problems one might have can be discussed with the agent assigned to a personal branch of the insurance provider, but sometimes companies delegate this responsibility to certain people via telephone or internet. Also, read the actual notification of cancellation. It might not be an actual cancellation, but a warning of a cancellation if certain criteria are not met. Read every document to clarify understanding and position involved.
After reading all documents, it should be established within the mind of the client what the reason for cancellation is. Reasons vary for cancellation from nonpayment of premiums, to suspension of license, inaccurate information, or if an insurance company doesn't have current information. It should be determined if the reason for cancellation is justified. If the cancellation is for invalid reasons, then inform the insurance company for a retraction. If the cancellation is based on valid cause, then often a reinstatement can be made simply by rectifying the situation and asking for a new policy or a reinstatement on the former one. The most popular reason for cancellation is non-payment of premiums. After the insurance company receives payment, they are motivated to start up a policy again as long as they can speak to the client to confirm a desire to meet standards of the policy. Other reasons for cancellations can be overcome also by communicating to the insurance provider the position the client has for not being a good candidate for cancellation. It is important to keep dialogue open to clarify mutual interests.
Whatever the reason for cancellation, it is important for car insurance rates that insurance coverage be constant. It should also be noted that companies that often provide the cheapest car insurance premiums are often among the first to cancel a policy. The best defense against cancellation notices is to be proactively involved with the requirements of the insurance provider through open channels of communication.