Automobile Insurance is a great way to have peace of mind when on the roadways. You know that if you are involved in an accident, your insurance company is going to be there to cover you. At least, you expect them to be there to cover you, but what if they are nowhere to be found? There are times automobile insurance companies will refuse to pay out or will outright cancel your insurance coverage. In most instances, if you are a responsible driver you won’t have to worry about this happening. If you are less than responsible with your driving or your payments you could find yourself in a bit of a pickle with no insurance company to help you out of it. What are some ways that an insurance company will deny a claim or cancel your insurance?
DUI Related Accidents: Driving while intoxicated is illegal, and causing an accident while intoxicated is a big problem. Each insurance company will handle a DUI related accident differently. Some might have a clause specifically for DUI related accidents. Some might pay out but have severe consequences such as canceling your plan or not renewing your plan when it expires. The other issue is that a DUI on your record can place you as a high-risk driver, making your premiums go through the roof. Not just for your current insurance company, but for any insurance company you try and go with afterward.
Too Many Accidents: Insurance companies are there to help pay for damages in case of an accident. This doesn’t mean they are going to keep covering you over and over again. Too many accidents and you might be considered too much of a risk to cover. Your accidents cost the insurance company money. The idea is that you pay them regularly and your accidents are so rare that they make a profit off it. If you get in constant accidents then you are costing them more than they are making. It also means you will likely get in more accidents afterward.
Lapse in Payment: You get what you pay for, and if you’re not paying your not going to get anything at all. If you don’t pay your insurance regularly than the insurance company isn’t going to pay their part either. If you are having problems making your payments, you can speak to your insurance company about changing your coverage or if it is temporary, ask about making a late payment. The worst that they can do is say no, so it doesn’t hurt to ask if you come across some suddenly hard times.
Unregistered Driver: automobile insurance isn’t just for the vehicle, it’s for the driver. If an automobile accident happens while someone not on the insurance plan is behind the wheel of your vehicle, the insurance company might not pay out. Make sure you understand your policy and the restrictions it might place on paying out such as who is behind the wheel during the time of an accident.
Too Many Tickets: Insurance companies are taking a risk when they insure someone. They might never have to pay anything because the person is a safe driver and avoids accidents or they might have to pay for an accident on the first day of coverage. If you get too many tickets, you are showing that you are a risky driver to insure and could be turned down. It’s like any kind of gamble, you are not going to put money on a bet you are likely to lose money on, so why should an insurance company?
If you are looking for an insurance plan that is going to cover you and fit within your budget, talk to O’Quinn Insurance. We can connect you with an insurance plan that will fit your needs and your budget without all the hassle of running around to different companies on your own.