 Unfortunately, insurance coverage is not permanent. Even more importantly, you should never assume that by paying money toward premiums for an insurance policy that it cannot be cancelled. After all, your insurance company may decide not to allow the driver to renew their contract when the contract ends. Because of this, it is important for you to know the facts about your car insurance so that your insurance provider does not drop your coverage.
Lying about your driving record when you apply for the coverage is one key cause for the insurance company to drop your coverage. In most jurisdictions, an insurer has up to 60 days to cancel your coverage. Neglecting to tell the provider about speeding tickets, accidents, or DUIs can be grounds for cancellation of your policy. The insurance company can gain access to your driving record fairly quickly, so it is best to be upfront and honest about any issues with your driving record from the start.
Nonpayment of monthly premiums is also a reason for cancellation of your policy. If you are not able to make a payment for your policy, it is a good idea to contact your insurance provider and explain your situation. More than likely, the provider will allow you to have a grace period for payment. That means that your coverage will not lapse and you will still be able to maintain your policy, even though you will not be making the payment on time. The company may allow you to do this once or twice throughout the entire time you have the policy. The company will not allow you to do this on a monthly basis and may drop your coverage if it happens continually.
A company can choose not to renew your coverage when your policy expires if you make numerous frivolous claims or get a large number of tickets during a certain period of time. The insurance company may view you as a high-risk driver if you do not maintain a good driving record. High-risk drivers are not easy to insure because the company thinks that there is a higher chance they will have to pay claims when insuring these drivers than those who are more careful behind the wheel. Small incidents, such as a grocery cart hitting your car door or dinging your bumper on a trashcan do not require you to file a claim with your insurance company. More often than not, small dents or scratches can be repaired for a few hundred dollars. Depending on your deductible, it could save you a lot of time and hassle to simply pay to have the repairs done on your own.
For more information about what you can do to ensure that your Los Angeles car insurance coverage is not canceled, you can talk to an agent at True Rate Insurance Agency at 855-735-1600.
Posted Thursday, May 30 2013 9:03 AM
Tags : Los Angeles Car Insurance, Los Angeles Auto Insurance, California car insurance, True Rate Insurance Agency
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