Four Cases In Which You Need To Contact Your Auto Insurance Company Immediately

Posted on: 24 August 2017

Do you just communicate with your auto insurance company when making claims? If so, then you are risking your relationship with your insurance company and your coverage. There are certain situations in which you need to contact your insurance company as soon as possible. Here are three such situations:  

You Are Involved In An Accident

You need to inform your insurance company of every accident you are involved in whether you plan to make a claim or not. This is especially true if another party is involved. Even if the other party waives their right to make a claim, there is always a risk that they can change their mind later and file a claim. If that happens, and you failed to report the accident earlier, you will have a problem with your insurance carrier. As a rule, notify the insurance carrier of any accident in which:

  • Someone or an animal is injured
  • There is extensive damage to property (it doesn't matter whose property has been damaged)

Your Risk Has Gone Up Or Down

Your insurance company evaluates a number of risks to come up with your rates. The major risks evaluated include the risk of getting involved in an accident or getting your car stolen. The factors that determine these risks include:

  • Your marital status
  • Where you live
  • How much you drive
  • Your car's make and model
  • How you use your vehicle

Your insurance company will collect all these data when selling you coverage. Therefore, you need to contact them and provide them with updated data if anything changes. For example, if you used to drive 10,000 miles per year when buying coverage, but now drive only 5,000 miles per year, inform your auto insurance carrier and you may enjoy a low-mileage discount. When you move to a different part of the city or to a different city, inform your insurer to help them evaluate your current risk. Your rates may go up or down depending on the nature of your new home.

You Want To Cancel Your Coverage

Lastly, you also need to inform your car insurance company if you have decided to stop dealing with them. This is necessary whether you will not need coverage for the foreseeable future (for example if you are moving overseas) or if you are switching to a different company.

Some people make the mistake of just going silent when at the end of their coverage assuming that their insurance carrier will just realize that they are no longer insured with them. Unfortunately, that is not how it works. The insurance company (and any other insurance company you may deal with thereafter) will treat such a scenario as failing to pay your premiums, which leaves you without coverage and may affect your future rates. Therefore, consult your current insurance carrier and follow their procedures when terminating your coverage.

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