Old Car Insurance
Switching from an old car insurance to a new car insurance is a fairly simple process, but there are rules for doing so that must be adhered to in order to avoid a negative impact on a person's credit rating. First, the insured should either call or write to the previous company and tell them to terminate the policy and on what date. The old company will then send a Notice of Termination form for the insured's signature. When terminating the prior policy and contracting with a different company, be careful to make the end of one and the beginning of the other coordinate. It wouldn't do to have an accident during a time between two policies, and then find be without coverage. The prior coverage should end on the same day that the succeeding policy coverage begins.
A policy doesn't necessarily terminate at the end of a policy term, so one shouldn't assume the previous policy is cancelled upon failure to pay the premium. If a written notice is not sent, the previous company will automatically bill in advance for the next term's payment, and when it isn't paid, will report the failure to the credit bureaus. This is a black mark on the insured's credit the insured doesn't need. Besides, allowing the old car insurance policy to be canceled may hurt a person's chances with the new car insurance company. There shouldn't be any negative repercussions if plenty of notice is given and the insured follows through with the official termination process.
There are numerous reasons for changing from the old car insurance to a new car insurance carrier. Maybe the insured is moving out of state, and the previous insurer doesn't have a branch in the new location. Or maybe he or she is buying a new automobile, and wants up-to-date coverage as well. Perhaps the service from the previous company hasn't been what the insured expected, so a different company has been chosen. A careful review has been made of the policy terms, and the newer policy provisions surpass the previous policy in some very important ways. In summary, if one has decided (for whatever reason) to switch from the old car insurance to new car insurance, as long as the rules for making the change are followed, it should be a painless process. We are exhorted by scripture to be careful in all our dealings: "This is a faithful saying, and these things I will that thou affirm constantly, that they which have believed in God might be careful to maintain good works. These things are good and profitable unto men." (Titus 3:8)
A policy doesn't necessarily terminate at the end of a policy term, so one shouldn't assume the previous policy is cancelled upon failure to pay the premium. If a written notice is not sent, the previous company will automatically bill in advance for the next term's payment, and when it isn't paid, will report the failure to the credit bureaus. This is a black mark on the insured's credit the insured doesn't need. Besides, allowing the old car insurance policy to be canceled may hurt a person's chances with the new car insurance company. There shouldn't be any negative repercussions if plenty of notice is given and the insured follows through with the official termination process.
There are numerous reasons for changing from the old car insurance to a new car insurance carrier. Maybe the insured is moving out of state, and the previous insurer doesn't have a branch in the new location. Or maybe he or she is buying a new automobile, and wants up-to-date coverage as well. Perhaps the service from the previous company hasn't been what the insured expected, so a different company has been chosen. A careful review has been made of the policy terms, and the newer policy provisions surpass the previous policy in some very important ways. In summary, if one has decided (for whatever reason) to switch from the old car insurance to new car insurance, as long as the rules for making the change are followed, it should be a painless process. We are exhorted by scripture to be careful in all our dealings: "This is a faithful saying, and these things I will that thou affirm constantly, that they which have believed in God might be careful to maintain good works. These things are good and profitable unto men." (Titus 3:8)
Old Car Insurance
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Reviewed by Anonymous
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12:30 AM
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