We all sign a contract when purchasing an auto insurance policy. But have you ever read it? I find it interesting that most people start reading the contract that they have signed only when an issue arises. Just think about it, would you be signing a blank sheet of paper if some one told you that they would write details later? Probably, you wouldn’t. Well, you pretty much do the same thing, when you decide not to read, and sign any contract. So, before even purchasing auto insurance, make sure that each part of the contract is clear to you, and you understand how it will work and what risks are covered by your policy. There are three most common questions that people ask about auto insurance policy issues.
1. Can the driving records of my family member have an impact on my ability to get auto insurance in the future?
A definite Yes. The driving records of any licensed driver in your household will affect the decision that the insurance provider will make about insuring your vehicle. You may want to ask your insurance company or your agent about a driver exclusion endorsement. Otherwise, you may have to pay high risk insurance premium or even to be turned down for any insurance coverage if there is an unsafe (high risk) driver in your household.
2. Can a finance company take out my insurance policy and make me pay for it?
Yes, this can happen when under the terms of your loan you have agreed to provide both comprehensive and collision insurance and you failed to do it. Your lender may obtain a policy to protect their interests.
3. My insurance company decided to place me in a high risk policy because I have not been insured in the last 30 days. Is it legal?
Yes, current law doesn’t prevent an insurance company from doing so. You can avoid this situation by paying for your premium on time.
As you see, it is good to know the answers for these questions before purchasing your policy, spending a few extra minutes while buying your policy may save you much more time later on.
1. Can the driving records of my family member have an impact on my ability to get auto insurance in the future?
A definite Yes. The driving records of any licensed driver in your household will affect the decision that the insurance provider will make about insuring your vehicle. You may want to ask your insurance company or your agent about a driver exclusion endorsement. Otherwise, you may have to pay high risk insurance premium or even to be turned down for any insurance coverage if there is an unsafe (high risk) driver in your household.
2. Can a finance company take out my insurance policy and make me pay for it?
Yes, this can happen when under the terms of your loan you have agreed to provide both comprehensive and collision insurance and you failed to do it. Your lender may obtain a policy to protect their interests.
3. My insurance company decided to place me in a high risk policy because I have not been insured in the last 30 days. Is it legal?
Yes, current law doesn’t prevent an insurance company from doing so. You can avoid this situation by paying for your premium on time.
As you see, it is good to know the answers for these questions before purchasing your policy, spending a few extra minutes while buying your policy may save you much more time later on.
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