Rights and Responsibilities of a Car Insurance Policy Holder

As a car insurance policy holder, do you know your rights and how to use them? Have you reviewed your rights before and upon receiving the policy that you have just availed? As a responsible holder of a car insurance policy, you will not only receive whatever coverage you have signed. You must learn how to use these rights in different situations. Car Insurance holders have different policies to avail, but you all have the same rights.

We may have rights, but this only applies to us, if we are going to follow the rules of the insurance company. For example, we can file for a claim after damages incurred during the car accident. In such a way, we can practice our right to claim as long as we are claiming for something that is covered under the insurance that we have paid.

But, this claim may not be approved, if the rightful people will find out that we did not follow the rules of the insurance company. For example, that is if we are claiming for something that is not under our coverage, especially, if we are at fault during the accident. This is the reason why it is very important for us to know our rights and be a responsible auto insurance holder, too.

Cancelling an Insurance

Do you know that you have the right to cancel an insurance policy after availing it? A car insurance company cannot stop you from canceling your policy and it is stated under the Consumer Bill of Rights. This usually happens when, after availing a car insurance policy, you have found a cheaper one with the same coverage and benefits.

If you are a car insurance policy holder, will you not cancel the current policy after finding a cheaper deal? This decision is in your hands, so you better think if you will continue it or not. And then, please be reminded that before canceling the current policy. You have to make sure that you have already availed the new policy to avoid breaking the laws under financial responsibilities in your country.

Denied due to Credit History

As a car insurance company, you should not deny an individual’s application for a car insurance policy just because of his credit history or records. If a company will reject your application only because of this history, then this particular company is not following the rules of their country. Again, you can find this under the Bill of Rights of Consumers.

As an applicant, you may still accept that you were rejected because of other factors, such as false identity, expired driver’s license or minor criminal offense. You need to fight for your right as a potential client and customer. Remember that you are a consumer and you to practice your rights. Do not let other people put you down and ignore your rights. As long as you are being responsible in everything that you are doing, the authority and law will be on your side. So, do not hesitate to make complaints if the reason for denying your application is not valid or acceptable.