Normally nobody would pay for car insurance and knowingly cause it to be voided. In most cases policyholders might not know the consequences of something that might seem immaterial to them. In few other times drivers might think they can get away with a small discretion. The problem is that they might not even know their policy is not valid until after an accident. They might then be in real trouble especially if they are at fault. There are a few things to be mindful not to face surprises of auto insurance invalidation.
Losing Driving Licence or Not Being Properly Licensed
Basically there is no point in having or keeping insurance if you have no license to drive a car. Sometimes people might lose their license because of accumulated traffic violations. Or they might get negligent and fail to renew it in time. Whichever way, car insurance companies would cancel policies of unlicensed drivers as soon as they find out or not pay any claims if it is discovered after an accident.
Providing False Information While Getting Car Insurance
Car insurance premiums entirely depend on information you provided at the time of arranging coverage. Most companies never actually check if they were true or not. People might think that they could get away with it since it is not confirmed. It is true until they have an accident and their coverage gets annulled leaving them on their own with the losses. Simply they would allow you to pay the premiums for the given particulars and desired coverage as long as you want. But they will not pay claims if they find out policyholder lied in the proposal. Commonly people might lie about the address and yearly mileage and some other details that might actually border fraud.
Not informing Insurers About Vehicle Upgrades
Some internal upgrades might not really be important at all unless considerable enhancements made to car performance. For example, when people install expensive comforts to cars insurance might refuse to pay all the additions in case of a theft or accident. However if the engine is replaced with a much powerful one insurance might become void completely. The best thing to do is to check with the auto insurance company before making the improvements. People might be agreeable to paying extra premiums and be safe or decide against improvements at this stage.
Failing To Take Due Care To Avoid Losses
Policyholders are required to look after their cars, protect it from harm and be honest all the time. For example, insurers might refuse to pay a theft claim if they find out the car was an easy target. If the car insured with an alarm you need to keep that alarm functional at all times. Another one is to tell the insurance company that you keep the car in the garage but in fact you filled it with junk and car is left on the street. But that still can not top leaving the car running on the street unattended. When the companies find out you have been negligent in the incident they might refuse to pay a specific claim even though they might not cancel the policy.
Not Updating Particulars Held By Car Insurance Companies
Probably a pretty common case is not to bother telling providers about changes in personal circumstances. These cases might only result in retrospective premium payments at times depending on importance of particulars. For example, not informing a change of job might be seen as an oversight unless new job require long drives everyday. But changing the car and not telling insurance company might not go down well when you report an accident. You are required to inform insurers of any material changes as soon as possible.
Related posts:
- How Changes In Your Circumstances Affect Auto Insurance?
Source: http://autoinsurancequoteseasy.com/blog/car-insurance-coverage/
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