Policyholders’ Rights in Auto Insurance

Insurers may take advantage of policyholders’ inability to understand their rights, and use this knowledge to engage in improper business practices. These are 10 things that policyholders and auto applicants need to be aware of.

1. Insurers are required to inform applicants if they deny a request. Most states require that companies explain why an application is denied. The consumer has the right to request review, corrections and appeal.

2. Consumers cannot cancel their auto insurance policies by auto insurance companies. The policyholder has the right to cancel their policies at any time, even if they are still in force. You can cancel your policy at any time, even if it is due to renew. Consumers have the right to a refund for any premium not used. An insurer can charge a penalty if you cancel too early.

3. An insurer can change or increase coverage at any time, and not just on the renewal date. They can also request a refund for those who want a lower premium.

4. The insurance company can also cancel the policy at any time. The company must notify the policyholder of the unfortunate event. The cancellation notice must contain explanation.

5. There are many reasons why an application may be denied. An insurer cannot refuse to approve an application if another insurer has denied it previously. This is not valid. If the company must cancel an application, it should give a clear explanation.

6. High-risk drivers may be able to improve their driving records and apply for a lower premium. They can also revoke high risk labels from their names to apply for a new policy. It does not mean that a driver cannot get better insurance. For this reason, insurance companies will not deny an application.

7. It is possible for first-time buyers to overlook the fact that purchasing only the minimum state coverage requirement can reduce their expenses. It doesn’t make sense to deny coverage because of a minimum purchase, no matter how large a company.

8. A bad credit history can lead to higher premiums, but should not cause cancellation. The auto insurance company should assess the credit score to determine the premium rate. Although the rate is almost always higher than the average, the applicant still deserves the opportunity to have proof of insurance. Bad credit scores are not acceptable for cancellation.

9. Premium can be paid in installments or in advance by policyholders. An insurance company should not deny an application because customers ask for installments.

10. Premium rates are affected by DMV records. A person’s record may include minor violations or involvement in major accidents that resulted in permanent injuries or death. If an insurance company denies a claim due to DMV records the applicant can request information about the point in the record that led to cancellation.

It is best to be clear about the application process and informative. Every applicant should be able to provide a concise explanation of price, payment methods, renewal and cancellation.
In the latter days, misinformation can cause serious problems for both consumers and agents. Policyholders can be confused by unclear policies or incorrect explanations. However, mistakes in renewals and claims are not always on the consumer’s side. These issues can be avoided by ensuring that all parties involved in the purchase (insurer/agent, buyer) are on equal footing and fully understand each other’s needs.

High-Risk Drivers

Most people know that high-risk drivers include those with criminal records, such as DUIs or other major traffic violations. Insurance companies have a different perspective. High-risk drivers include drivers with poor DMV records and drivers who have never had any records. Teens and anyone with a new driver’s license are also included in this category. If the insurers are not from a non-standard market, high-risk drivers may be denied.

The main differences between non-standard and standard markets are the price and coverage options. The non-standard market is more expensive than the standard market and many companies do not offer state minimum coverage. Good to Go insurance is an exception because it offers optional coverage like Comprehensive and Collision.

Good 2go offers multiple discounts in order to lower the premium rate. There are three types of discounts available: Discounts for drivers, vehicle discount, and policy discounts. You may have different eligibility requirements depending on where you live. To find out how you can save money and how to get it, please contact an agent.