Don’t Lose Your Auto Insurance!

Losing your auto insurance or driving with a revoked or cancelled policy can lead to a financially disastrous situation when you or your vehicle will be involved in a traffic accident.

Having an accident without your auto insurance policy being valid will have you all alone to face that accident’s consequences such us paying for the high costs of medical payments for you or for the people you have injured, the high costs of property damage that you or your vehicle might have cause, and the high costs of vehicle repairs. Without your auto insurance, you are left alone to pay for such obligations.

For these reasons, you must be conscious on the maintenance of your insurance policy. You must know the terms you and your insurer have agreed upon, and the things you need to avoid for you not to have your insurance company cancelling your policy.

Here are some circumstances wherein your auto insurance policy may be cancelled by your insurance company:
1) When you fail to pay your premium by its due date. – Most auto insurance policies’ premiums are being paid on an installment basis wherein due dates are being specified. Be aware of those due dates and pay your premiums promptly.
2) When you misrepresented information to your insurance company, with the intention to defraud them. – You must at all times provide the accurate information that your insurer will seek from you. That includes accurate information on your driving record – length of driving experience, traffic infractions and accidents if any. Some insurance applicants deliberately misrepresent information to their insurer so as to have lower premiums, thus defrauding them.
3) When other terms and conditions stipulated in your policy has been violated. – Examples of are that when your policy’s term prohibits any driver with a suspended license to drive the insured vehicle, or that if the vehicle has been used other than its intended purpose.

You may want to examine closely your auto insurance policy’s terms and conditions so as to avoid events that can cause your policy to be cancelled by your insurer. Your insurance company may have instituted different grounds to revoke a policy. These grounds may refer to a policyholder’s actions, their health status, the condition of the insured vehicle, and other things that may be detrimental to the public or can cause an insurance company extreme amount of loss.