STAYING ON THEIR GOOD SIDE
There are many reasons to stay on the good side of your car insurance company. It’s not that hard really. All you have to do is pay your premium, drive safely and keep your car in a safe place.
So here’s what to do:
-Fill out your application honestly and be truthful when questioned about prior accidents and traffic violations.
-Don’t file anything that smacks of a fraudulent claim.
All of these things are pretty obvious. Did you know that most states allow companies to drop a person’s insurance for lots of other reasons? Like during the first 60 days of a new policy, you can be cancelled without any reason at all. They are reviewing your policy during that time and they can decide not to accept you.
After that, insurance companies are required to have a good reason to cancel you. In some states you can be cancelled if your license is suspended or revoked. It can also be cancelled if someone in your household has their license suspended or revoked.
Each state is different but generally, if you have three or more accidents that are your fault your insurer can cancel or not agree to renew you. Another tricky rule from the California Department of Insurance states that “a substantial increase in the hazard insured against,” can be cause for cancellation. What does that mean? It generally means letting other people driving your car regularly and not informing your company.
The condition of your car may also give your insurance company reason to cancel your insurance. For instance, if your car fails to pass a state inspection, your insurance can be cancelled. If you alter your car inappropriately or if you use it for your business in a high-risk way, such as transporting flammables or explosives count on your carrier to inquire. Insurers cannot cancel you because of your age, gender, race, color, creed, ancestry, occupation, marital status, employer or physical handicap.
A notice must be mailed to you at least 10 days before cancellation for non-payment. If your policy is being cancelled by the insurance company for other reasons, the company usually gives you 20 to 45 days. Most states require insurance companies to give you a very detailed explanation of what issues are causing them to cancel your policy.
If you are cancelled you do have some options, so don’t give up. First, contact your agent and see if you can be reinstated. If you can’t get reinstated get quotes from other companies. If you don’t have any luck finding a company that will insure you, try companies who specialize in nonstandard auto market, high-risk drivers. If that gets you no results, see if your state has a high-risk car insurance pool.
You can try to appeal the cancellation but get some help from a qualified auto insurance attorney before you enter into the appeal process. Your decision should be made quickly, as a lapse in coverage may increase future premiums. Remember in most states, it is against the law to drive without insurance.
Tags: Insurance Rescission, Employee Benefits Attorney
Insurance Rescission Employee Benefits Attorney
