Will the Insurance Company Cancel Your Insurance if you Have an Accident?
As much as it is great fun to drive a car on roads, it can be equally risky. A car accident may happen at any time on the road. Such a situation brings both your car and health insurance policies into the equation.
If you are a beneficiary of both these policies, you might want to get the answer to a frequently asked question. You might want to know if your insurer would keep both these policies intact following a car accident. Read on further to find out more about it.
Can your insurance provider cancel your insurance?
The shortest possible answer to this question is “yes.”
Though an insurer reserves the right to cancel an insurance policy from their end, they generally think about increasing the premium nine out of ten times. In other words, insurance providers do not consider canceling the insurance policy of their clients straight away despite reserving the right to do so.
You might wonder what would happen if, say, your provider dropped you.
It is vital for every car owner to be in posession a car insurance policy to drive legally on the roads. As such, not having it can land you into legal trouble.
In the event that your provider drops you, the next thing you need to do is look for another provider that can offer you a cheaper coverage or at a premium that is well within your budget. It may not be as easy as it seems to be on the surface, but proper research will get you there.
Read on to the find out more about the possible scenarios in which your insurance provider may consider dropping your policy.
Compelling reasons for which auto insurance companies drop drivers
When you sign up for an insurance policy, it is a legal agreement between two parties: the company and the policyholder i.e., you.
So, the first and foremost factor that can lead to the cancellation of your auto insurance policy is the breach of contract. It can happen due to the violation of any one of the stated conditions in the legal document.
The other possible reason for it could be too many claims in a year. When you file even a single claim in a year, your profile goes for a toss on your provider’s eye. Filing too many of them can certainly get you into the bad books of your insurer, which may eventually compel them to drop your policy or cancel it.
As is the case with some car owners, even you may also have a liking for speed. As long as it is within the traffic limits, it will not lead to any problem. But if you find it difficult to obey the maximum traffic speed limit while driving your car on the road, it may make you liable to get speeding tickets.
The problem arises when you receive too many speeding tickets from the traffic police. It can put you into the high-risk zone wherein even a single instance of an accident may cause your insurer to drop your policy.
Apart from the aforementioned reasons, your provider may decide against continuing your auto insurance policy if you get a ticket for drinking under the influence of alcohol. Other than alcohol, the use of drugs or substance abuse also comes into this category.
How to prevent the cancellation of your auto insurance policy
How can you avoid it? To begin with, it is important to go through the terms and conditions of an auto insurance company before signing up a contract with it. In case you are not sure about any one of the parts, it is a good idea to look for clarification. This way, you can rest assured that you understand all the legal terms and conditions in the document.
After entering into a contract, try not to act in violation of the stated rules and regulations as per the contract. Pay your premium at regular intervals without missing out on its payment for any month.
More importantly, try your best to take care of the risk factors stated above. By doing so, you can maintain a good track record of your driving history and remain a low-risk driver in your provider’s eye. As a spin-off, you can also keep the possibility of paying a higher premium rate at bay.
Can you get coverage for car accident injuries under a health insurance policy?
The instances of accidents are on the rise these days to the point that every car driver drives on the road with this risk factor at the back of their mind.
While you may not be able to prevent accidents from happening, you can certainly take some pre-emptive actions to keep yourself prepared in advance so you can deal with the ensuing situation of a car accident without any stress.
Nowadays, most health insurance companies include accidental coverage as a part of their overall health insurance policy. There may be some additional terms and conditions for the inclusion of these policies. Also, providers may charge an additional premium for offering this feature.
However, it is essential to remember that not all insurance companies provide coverage to accidents to their customers. So, at the time of taking an insurance policy, consider inquiring about it from your insurance consultant for certainty.
Even as your accidental cover is not included in your health insurance policy, it makes sense on your part to enquire about it. This facility can be your savior in the hour of need and eliminate the need for borrowing money for hospitalization charges, should you ever meet with an accident.
The companies that provide this facility with insurance policy by default impose an upper limit on the expenses of different medical services. This includes the doctor’s fees and charges for arranging for an ambulance or a hospital room.
The terms and conditions of providers vary from one another. So, it depends on your provider whether or not you’d get this facility by default. With some providers, you may need to pay an additional amount in the premium to avail it.
Some people have a tendency of making certain assumptions in connection with the accidental coverage in their policy without reading the terms and conditions. It is imperative that you go through all the terms and conditions to understand the eligibility of criteria, the extent of coverage, and exclusions.
Though the insurer of your health insurance policy is unlikely to cancel the policy due to an accident claim, it is vital to know the Ins and outs of your policy. It is recommended so that you can claim the amount of money that you are entitled to in the form of accidental coverage at the time of need.
From the above, it becomes crystal clear that a car accident brings both your health and car insurance policies into the equation. Though the chances of these policies, particularly the one related to your car, getting canceled by your provider is slim, you cannot rule it out. Make sure you go through the terms and conditions well. This will help you figure out the ways by which you can remain in the good books of your insurer. It will help in eliminating the chances of the cancellation of your health/car insurance policy altogether. You can visit this link, read the terms and conditions and make an informed decision.