Auto Insurance Cancellation – What Happens Now
Reader’s Question:
I just recently purchased auto insurance here in Arizona. As a new policyholder, I am just curious about auto insurance law here. Do you happen to know the reasons that could result to cancellation of my auto insurance in Arizona?
Rea
North Pinal, AZ
The Arizona Department of Insurance listed the following reasons on how auto insurance policy can be cancelled:
1. failure to pay the premium;
2. the auto insurance policy was purchased in a deceptive and misrepresentation way;
3. the person insured or any person who frequently uses the vehicle that is insured has:
a. his/her licensed suspended;
b. has been disabled permanently;
c. within the 36-month period before the effectivity date of the policy or within the policy period has been convicted of: crime that resulted to death, assault, or homicide that involves his/her ability to drive a vehicle; DWI and DUI; supplying untruthful information when applying for license; reckless driving; and leaving the scene of a vehicular accident.
4. the insurer’s certificate was cancelled or the insurer was placed into rehabilitation;
5. was determined by the Director of Insurance that maintaining the auto insurance would result to the policyholder’s violating the law.
Those reasons are only applicable if a car insurance policy has been in effect for more than 2 months or 60 days. For more information bout cancellation of auto insurance in North Pinal, Arizona, you may contact the Arizona Department of Insurance.
Auto Insurance Question in Los Angeles
Reader’s Question:
I would like to make sure if it is illegal to have your car insurance registered to a different address than where you live? I live in Los Angeles, CA right now, but if I place the address for my car insurance to my parent’s house in another city, the rate is reduced by at least half.
Victor
Los Angeles, CA
It is illegal and a form of fraud to give false information on an insurance application, especially for the express reason of lowering your insurance rates. According to the California Department of Insurance, fraud happens when an individual knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or an individual knowingly denies some benefit that is due and to which someone is entitled.
An alleged wrongful act may be handled as an administrative action by the Department of insurance or the Fraud Division may handle it as a criminal matter depending on the specific issues involved. Trying to obtain car insurance from your parent’s address instead of your own address where the car is actually garaged would be misrepresentation and could get both you and your parents in trouble if done. If you did acquire car insurance using their address and this lie was later uncovered your car insurance could be cancelled and if an accident occurred it may not be covered since the insurance policy was set up using false information.
This can also be classified as material misrepresentation which as defined by the Department of insurance is a false statement given by an applicant of any important fact that, had the insurance company known the truth, it would not have insured the risk. Instead of committing fraud it is best to be upfront and truthful with an insurance company and use your correct address. If you want to try and reduce costs for your car insurance in Los Angeles, California ask about discounts or if there are driver programs in which to participate so that you can reduce your premiums.
What Is The Best Auto Insurance Company In Indiana?
Reader’s Question:
How do I determine the quality of an auto insurance carrier in order to choose the 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.
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