AUTO INSURANCE ARTICLE
Interesting Facts About Auto Insurance Rates
By: cradel_bookAuto insurance rates can be such a burden for an average Joe. You might not be able to avoid paying for an auto insurance policy, but you can make sure that your penalties as well as your insurance rate are kept in minimum. Avoid shelling out too much money on your existing auto insurance policies by keeping in mind these important reminders:
Car owners sometimes allow their friends to borrow their cars. Unfortunately, if an accident happens while somebody else is using your car, the owner of the car is equally responsible as the driver for whatever damage or injury that the car will cause. That is why you should only entrust your vehicle with competent drivers because as the owner, you will still be liable for your car’s accidents even if you’re not the one driving it during an accident.
The information you give to your agent or insurance company will determine your auto insurance rates. However, insurance companies has the right to decline your application or to cancel your insurance policy if they found out that the information you have given them is false or incomplete.
Insurance companies will request for a higher deductible or may simply refuse to sell you a Comprehensive Coverage policy if you repeatedly file a lot of comprehensive claims like broken windshield claims and others.
Wait for your current auto insurance policy to expire before you apply for a new one. Insurance companies will require you to pay a penalty if you cancel your existing insurance policy before the contract has been terminated.
Policy renewal notice from your insurance company should arrive approximately 30 days before you insurance policy expires. This is to make sure that you will be given ample time to upgrade or downgrade your policy, examine any policy changes, or shop around for other insurance companies.
Call or notify your agent or insurance company immediately in case you don’t want to renew you policy. Don’t stop paying your premium without notifying them because they will cancel your policy due to non-payment and they will also put you in a high-risk category.
The Insurance Act requires insurance companies to give their clients 15 days notice of termination of policy by registered mail or five days written notice of termination by personal delivery. The insurance company may, but is not obligated to, keep the existing policy if you pay the outstanding amount before the end of the notice period. However, if the insurance company does not receive your payment by the end of the allotted period, your insurance policy will be terminated due to non-payment.
Insurance companies will charge you a higher insurance rate for a future policy if there is a lapse in your coverage due to cancellation of your policy.
Report your accidents as soon as possible. As a rule, owners of the vehicle should report any accident including injury or property damage within seven days after the accident, regardless of who is at fault.