How To Maintain Your Personal Car Insurance Coverage
Your car insurance coverage is good only as long as it is valid. A cancellation or non-renewal prevents you from benefiting from your insurance in case of an incident or accident. Additionally, a number of things can prevent the insurance company from honoring your claim. Below are some tips to prevent such things and ensure your coverage's continued validity.
Renew the Coverage in Time
Your insurance coverage is a contract between you and the insurance company. The insurance company's obligations include compensating you for the relevant losses. Your obligations include paying your premiums on time. Thus, the contract becomes void, and the insurance company can terminate your coverage if you fail to pay your premiums on time.
Here are a few tips to help you pay your premiums on time:
- Set up automatic payments so you don't have to remember and process them every month.
- Budget for your insurance payments to ensure you have the money every installment period.
- Understand your carrier's payment terms and grace periods and adhere to them.
- Set up reminders to alert you if your insurance is about to elapse.
Inform your insurance company if you want to cancel your policy and follow the relevant procedures; don't just stop the payments.
Provide Full and Accurate Information
The insurance industry works best if everyone is forthright with their information. For example, your insurance company uses your information to understand your risk exposure and calculate your risks. Some of the information your insurance needs include:
- Your residence
- Information on drivers in your household
- How you use the car
- Your driving history
- Your age
You might lose your coverage if the insurance company detects a material error in your information. For example, you may lose coverage if you buy personal insurance for a business car.
The insurance company will mention the specific information to provide during coverage purchase or renewal. Confirm the information's accuracy because even an honest mistake might jeopardize your coverage.
Report All Relevant Changes
The initial information you provide to your insurance company may change over time. For example, you may relocate, get married, change cars, or have more people driving your car. Your insurance company expects you to furnish it with such changes so it can update your profile. Some changes may affect your rates, but the insurance company still needs it.
Consider a case where you lose your job and move to a neighborhood with high incidences of car thefts. Inform your insurance company about the relocation if you want to keep your policy. Otherwise, the carrier may use nondisclosure to cancel your policy.
Minimize Incidents, Violations, and Accidents
Your insurance policy protects you from losses related to your car. The protection costs your insurance company money through legal defenses, claim settlements, and accident investigations. Therefore, the protection is limited, and you may lose your coverage if you accumulate numerous claims within a short period.
Avoid criminal activities that might jeopardize insurance coverage. Car-related criminal activities are even more dangerous. Such crimes include:
- Insurance fraud
- Vehicular homicide
- Reckless driving
- Hit-and-run accidents
You should do your best to avoid auto collisions, car theft, and vandalism. For example, you should park in safe places, learn and practice safe driving techniques, and maintain your car to ensure it's always roadworthy. Lastly, evaluate claims and only file significant ones; settle minor losses out of pocket.
Hopefully, the above information will help you retain and benefit from your car insurance coverage. When you have concerns or questions, contact Clover Insurance for help with all your insurance-related issues. We can help you whether you need conventional, rideshare, or SR-22 auto insurance. We have over four decades in the industry and promise to use our experience to improve your insurance experience.
