10 things you should never hear from a car insurance company

Imagine this: Your insurance agent calls and informs you that your auto insurance policy is being cancelled, offering no further explanation.

You are stunned, the first question that pops into your mind is, "Can they actually do this?"

The answer to that question is a very unsatisfying, it depends.

First the bad news.

During the so-called "binding period," which is typically the first 30 to 60 days of your policy, depending on your state laws, your insurer is free to cancel at will, without offering an explanation. This period allows the insurer to investigate the accuracy of your application and decide if they want to accept you as a risk.

The most common reason for a cancellation during the binding period is due to underwriting, says Kristofer Kirchen, president of Advanced Insurance Managers in Tampa, Fla. "Discovering an undisclosed driver, failure to provide requested information and vehicles that do not meet coverage requirements are common," says Kirchen.

Now the good news.

Once the binding period has passed your insurer can only cancel for valid reasons. Reasons vary by state but common ones include non-payment, fraud, or suspension of your license.

Regardless of whether you are shopping for a new policy or renewing your current one, you have rights when it comes to car insurance.

Most people know that you cannot be denied a policy due to your gender, ethnicity or religion. Though specifics can vary by state, beyond these basics, there are other things you should never hear from a car insurance company. Here are 10 things your insurer should never say to you.

1.We are denying your application but are not going to tell you why.

Most states require insurers to explain why they are denying an application or non-renewing a policy. If you feel the decision is based on incorrect information you have the right to review your application and to make corrections and appeal the decision.

2. You cannot cancel your policy until the renewal date.

You can and shop for insurance at any time and are entitled to a refund of any unused premium. However, insurers do have the right to charge a penalty if you cancel before the expiration date.

3.You cannot change your coverage or policy limits until the renewal date.

You can change your policy limits or coverages at any time and if the changes result in a lower premium, you are entitled to a refund.

4.We are cancelling your policy and not giving you any notice.

Required notice will vary by state but your insurer must give you written notice of a cancellation or non-renewal and the reason why. For instance, Texas requires 10 days notice while Massachusetts gives you 20 days. If you feel the cancellation is based on inaccurate information you have the right to appeal.

If you experience a cancellation, look for a new policy immediately.

"A lapse of just one day can result in a penalty and a lapse will typically cause your rates to go up," says Penny Gusner, consumer analyst with CarInsurance.com.

5.We cannot insure you because you have been denied by another insurance company.

Insurers can look at a variety of factors when evaluating your application but they cannot deny coverage based on the fact that you have been denied by another insurer.

6.We cannot insure you because you purchased from an assigned risk plan.

Insurers cannot deny a policy because you were previously insured by an assigned high-risk plan for drivers convicted of DUI or other serious offenses.

7.We cannot sell you a policy because you are only buying the minimum required state limits.

An insurer cannot refuse your application because you only want to buy the minimum amount of car insurance required by your state.

8.We cannot sell you a policy because you have a low credit rating.

While insurers in most states consider your credit rating when setting your rates, they cannot deny coverage based solely on your credit rating.

9.We cannot sell you a policy because you are not paying in full.

Most insurers offer a small discount if you pay the policy in full, but they cannot require it. You have the right to pay for your insurance in installments. Insurers are allowed to charge a fee for each installment. (One exception is if you have a policy attached to an SR-22, which is a form that your car insurance company must file with the state to show that you have obtained -- and will maintain -- certain auto insurance coverages.)

10.We don't like something on your driving record but won't tell you about it.

Insurers consider many factors when calculating your car insurance rate, and your driving record is chief among them. However, insurers have to give you an explanation of how your DMV record affects their decision.

The original article can be found at Insurance.com:

Related articles

Yahoo Cricket

Most Viewed

  • Dum Laga Ke Haisha Star Bhumi Pednekar Has Lost Weight!
    Dum Laga Ke Haisha Star Bhumi Pednekar Has Lost Weight!

    Bhumi Pednekar made her Bollywood debut opposite Ayushmann Khurrana in Dum Laga Ke Haisha doesn’t actually look even tiny bit close to her character from the movie. The reason why we didn’t see Bhumi come in front of media to interact, as her character and role in the film was kept a secret from audiences. …

  • Swine flu hits Sonam, Vidhu Vinod Chopra & family
    Swine flu hits Sonam, Vidhu Vinod Chopra & family

    Actress Sonam Kapoor who was diagnosed with swine flu on Friday was moved to Kokilaben Ambani Hospital in Mumbai. …

  • Sunny Leone Recreates Zeenat Aman’s Hot Look!
    Sunny Leone Recreates Zeenat Aman’s Hot Look!

    For her upcoming film Ek Paheli Leela, Sunny Leone has recreated Zeenat Aman’s iconic look from Satyam Shivam Sundaram where she’s shown to be wearing a white sari. Elaborating on the look, director Bobby Khan says, “The way SSS captured Zeenatji’s beauty was beautiful. When I bounced the idea off Sunny, she immediately approved. Our film has glamour but we’ve kept Indian sentiments in mind, which is why she wore a spaghetti top with her sari.” Directed by Bobby Khan starring Sunny Leone, …

  • Why Is Salman Khan Sniffing Camphor And Cinnamon?
    Why Is Salman Khan Sniffing Camphor And Cinnamon?

    We had recently reported that Sonam Kapoor has tested positive for Swineflu, and after spending a brief period at Sterling hospital in Rajkot, she has been moved to a suburban hospital in Mumbai. After Sonam was diagnosed on the sets of Prem Ratan Dhan Payo, the crew has obviously been on high alert and everyone has been tested. The team is currently shooting in the garden owned by Maharani of Gondal, Kumud Kumari. …

  • Pooja Misrra Sues TV Channel: Claims 'Farah Ki Dawat' Was Her Concept
    Pooja Misrra Sues TV Channel: Claims 'Farah Ki Dawat' Was Her Concept

    The controversial Pooja Misrra, who became an overnight sensation after participating in Bigg Boss Season 5, has sued a renowned TV channel for allegedly stealing her concept of a cookery show, which is now being hosted by Farah Khan (Farah Ki Daawat). In a legal notice sent to the TV channel, which airs the show, Pooja's legal representatives have said, ''All boundaries of professionalism and decency were crossed when Colors went ahead and plagiarized 'Pooja Misrra Productions 'maiden cookery …

  • Sonam Kapoor Tests Positive For Swine Flu, Hospitalised
    Sonam Kapoor Tests Positive For Swine Flu, Hospitalised

    Actress Sonam Kapoor was recently discharged from hospital suffering from respiratory infection. Later she soon resumed back to work at Gujarat for shooting of her upcoming movie Prem Ratan Dhan Payo. Sonam Kapoor’s mother Sunita Kapoor had visited Gujarat on Saturday and took her by air-ambulance. Watch Video Here Sonam Kapoor has been shooting with actor Salman Khan for Sooraj Barjatya’s Prem Ratan Dhan Payo at Gondal in Gujarat from last 10 days. …

  • Oops! Sonakshi Sinha Does It Again!
    Oops! Sonakshi Sinha Does It Again!

    Sonakshi Sinha never goes out looking for trouble, because trouble usually finds her. The actress broke her hand again! Sonakshi Sinha took to her Instagram account and posted a picture of her injured hand, wrapped in pink bandage. Last night, on Friday, Varun Dhawan threw a Badlapur success bash and the actress, like a good and supporting friend, made it to the party, even with her broken hand. …

  • When Sonam Kapoor Crashed Out On The Sets Of Prem Ratan Dhan Payo
    When Sonam Kapoor Crashed Out On The Sets Of Prem Ratan Dhan Payo

    Seems like Actress Sonam Kapoor is having her hectic schedules these days. She is been shooting in Gujarat with actor Salman Khan for their next film of Sooraj Barjatya’s Prem Ratan Dhan Payo. Take a look at the photographs of Sonam Kapoor, she just crashed out, looking so comfortable, she took a quick nap on the sets of Prem Ratan Dhan Payo. Sonam Kapoor has been attending various events and award shows and equally she is managing her shooting of her upcoming movie Prem Ratan Dhan Payo with …

Loading...