Newtown Square Car Insurance
Great Rates on Newtown Square Car Insurance, One Call or Click Away!
Looking for home, life, business, or Car insurance in Newtown Square Pennsylvania or the surrounding areas?
We can help! Call 513-662-7000 or click Newtown Square Car Insurance for an online quote from top rated companies in our area.
In our previous article, you can read about a technique we discussed that some insurance companies are using to save themselves money. Click here to view the page.
If your credit score is at a certain level certain insurance companies will not order your CLUE or MVR report which in the past has been used to set your premium rates.
For example the CLUE report shows insurance companies how many claims you have had in the last 7 years and the amount paid. The MVR report shows what is on your driving record.
By not running these reports insurance companies are saving millions of dollars each year.
However this strategy could cost policyholders a significant amount of money down the road and we will discuss this next.
This is Why You Want Your Insurance Company to Run Your Reports.
The headline above seems counter intuitive. Let’s say you have excellent credit score but 3 speeding tickets on your driving record and your current insurance company knows about your tickets and gives you a large rate increase.
Why would you care if the next insurance company doesn’t run your reports and you conveniently let it ‘slip your mind’ that you have 3 speeding tickets on your record so you can save some money?
Note how one policy specifies your responsibility to be upfront with your insurance company:
FRAUD AND MISREPRESENTATION
Coverage is not provided to any person who knowingly conceals or misrepresents any material fact or circumstance relating to this insurance:
(a) at the time of application; or
(b) at any time during the policy period; or
(c) in connection with the presentation or settlement of a claim.
If you ‘forgot’ to tell your company about the 3 speeding tickets on your record and they didn’t run your MVR when they issued your policy because you have excellent credit, did you not misrepresent yourself on section (a) at the time of application because you did not disclose the 3 tickets?
It might be argued that you did in fact breach your contract at the time of you signing your application.
Would your insurance company invoke this clause?
It depends on a number of factors and the insurance company itself.
Here is the more important question: Would you want to take a chance that your insurance company could rescind your policy from its inception as if it never actually existed right after you are involved in a bad accident involving serious injuries or a death that you were found to be legally responsible for causing?
That’s a personal question that only you can answer.
If the insurance company rescinded your Newtown Square car insurance policy as you were facing a large judgment would you now see the wisdom of being totally upfront with your insurance company right from the start?
Naturally it would be too late after the fact, but it’s our opinion it would be a good idea for the insurance company to run the reports upfront, just in case something ‘slipped your mind.’
In our next article we will discuss a situation that doesn’t involve a large legal judgment but a large rate increase when companies don’t run reports initially from the start.
Great Rates for Car Insurance in Newtown Square are One Call or Click Away!
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