My girlfriend just purchased auto insurance for her new car. I don’t have a car and obviously neither do I have car insurance. We are just wondering on how car insurance stuff works . Can her car insurance company just cancel her policy anytime they want? Or is there such thing as grace period before auto insurance policy can be cancelled by the insurance company itself?

Orion

West Allis, WI

Hello there Orion!

I’ve checked with Wisconsin Office of the Commissioner of Insurance (OCI) about your question and I learned that car insurance companies can cancel their policyholder’s auto insurance policy provided that said coverage has been in effect within the 60 days. If an insurer chose to cancel the policy within the mentioned period then they are not required to give out explanation about the cancellation. Other reasons wherein a policy can be cancelled is when a policyholder failed to make a payment for the premium on the due date, fraudulent activities done by the policyholder himself/herself when availing of the policy or when making the claim, or major changes on the characteristics of the insurer.

However, for a car insurance policy to be cancelled, insurer is required to notify through writing the policyholder not less than 10 days before the effective date of cancellation or else said cancellation will not be processed.

If you have any questions about car insurance termination you can ask your car insurance agent in West Allis, Wisconsin or even the Wisconsin OCI.

How do I determine the quality best insurance company in Indiana?

Peter

Muncie, IN

Searching for the cheapest auto insurance company has been one of the topmost concerns for most consumers. Price is definitely an important factor; however, quality must also be taken into greater consideration. Also, a good balance between price and quality should be established.
A common belief is that when the quality of a company is higher, the price is also higher. In reality, there are many quality insurers offering excellent, competitive rates in Muncie Indiana while still being admitted carriers; where policyholders are protected by a state’s guarantee fund, leading to the deserved protection in case of an accident.

The quality of an insurance carrier can be determined in a few ways. One is that you can do a background check with your state’s Department of Insurance so that you can see the complaint records on file of a certain auto insurance company. This can give you security because admitted carriers have financial backing in case of bankruptcy.

Second is that an insurance company’s financial strength can also be a good indicator of quality. One is less likely to experience underfunded claims and service representation if the auto insurance company is financially stable. You can ask from your friends if they’ve had any experience with a particular auto insurance company. If they seem satisfied with their insurer, then you may try it for yourself rather than go with a company you don’t know anything about.

Third is that, the auto insurance dedication to give their customers the best quality of services through their friendly and knowledgeable customer service representatives. Assistance over the phone should be excellent since it is reflection of how well the insurance company trains its people and thus a good indicator of quality.

Auto insurance companies in Texas had begun considering the credit history as one of the factors to know which individual poses more risk. It is assumed by the insurance companies that if you have a good credit history, it is more likely that you wont file a claim against a your car insurance policy and more likely that you will pay your insurance premiums on time.

If your credit history shows that you are likely a responsible driver, a lowered premiums may be offered to you. Otherwise, if you dont have little or no credit history at all, you might pay a higher premiums for the coverage that you choose or may be denied of the offer altogether.

If you were denied for the insurance coverage because of your bad credit history, the Federal Reporting allows you to get a free copy of your credit report from bureau used by the car insurance company. You can dispute it if you think the information provided was incorrect.

If your credit is affecting your applications for insurance, here are some tips that may be able to help you:

1. clean up your credit. Make sure that you pay your bills on time and remove the high interest credit cards that you have and dont spend too much hat is beyond of what you can pay.

2. get some if you dont have any credit. If you dont have any credit history, you wont have any proof that you can pay responsible and in a timely fashion.

3. get all your credit report once a year to check if all the information are correct. You may dispute if you find some errors with the creditors and the credit bureau.

4. Consider getting higher deductibles so you can save money. Higher deductibles can definitely lower your premiums. Just make sure you can afford the high deductible if in case you will need to file a claim.

Goodluck!

-MariCAR