Avoid legal disputes
over automobile insurance
While your policy is in force
be paid to
After making calls to a few insurers to compare premiums and the coverage offered, you
purchased an auto insurance policy that suits your needs. What should you do to avoid nasty
surprises, either before you need to file a claim with your insurer or in the event of an
Before you need to file a claim with your insurer
Tell your insurer about any facts that could increase the likelihood of a claim. Here are
a few instances where you should notify your insurer:
o You decide to use your vehicle for business purposes;
o You start using your automobile to drive to work;
o You regularly lend your vehicle to another driver;
o You are moving;
o You have had an accident.
In the above instances, your insurer could decide to raise your premiums or, in rare
cases, no longer insure you. If you neglect to notify your insurer and you file a claim,
you may not be fully compensated or your claim could be turned down.
To end your
Pay your insurance premiums on time. If you miss a payment deadline, your insurer
could cancel your insurance.
Keep the receipts for any enhancements made to your vehicle that significantly
increase its value. For example, if you have the windows tinted or install a high-end
audio system, you should notify your insurer. In the event of a loss, you are responsible
for substantiating the loss sustained.
If you do not receive a renewal notice, contact your insurer, if necessary. Auto
insurance is renewed automatically, for an identical premium and period, unless the
insurer or insured provides written notice otherwise. If you do not receive this notice, you
should contact your insurer. You could be in for a surprise if, for example, the notice was
My insurer has just notified me in writing that, at my next renewal, it will raise my