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Common Reasons People Forfeit Their Car Insurance
by
tracynarvaez
Car insurance is a requirement. The government mandates that everyone that operates a motorized vehicle must have coverage for it. As most vehicles take a while for people to fully pay for it they will want to have some financial backing just in case damage happens to it. They will not be subjected to a total loss. They can use the funds to purchase a new automobile. When people are considered to by risky drivers by the insurance companies or do illegal actions they will get their protection revoked.
Do not forget to make your premium payment. This is the first rule of always being covered. Most companies will not grant you a grace period and will immediately stop providing you with protection. When you try and apply elsewhere your rates will increase and it will be harder to acquire a policy.
Reckless drivers always have higher rates. This is mainly due to how they drive. Excessive speeding can lead to accidents or even death of another person or themselves. When a person has a single event within a few years companies will raise rates, but they will not stop their policy. When enough tickets have been given to a person and the points are high they will cancel the policy.
The reason for an automobile accident is the deciding factor as to how your company will respond to you. If you were the offending driver your rates will increase and you will get points on your record from the incident. Should you be the victim in the accident it will not be used against you as you were not the cause of the damage.
Getting a DUI charge is a big deal. You do not get charged with this for an insignificant reason. A person is often under some influence of an illegal substance or more than the legal limit required to operate a vehicle that is deemed to be safe. An officer will usually stop the driver based upon how they are driving and give them a test to see if they are under any influence or not.
Committing a major felony will make a person lose their rights as a citizen, get punished by spending time in jail, and lose their automobile protection. When you do not have a license to drive you cannot be covered under any policy. Records are updated with the latest information. Companies will make sure that their data is kept current. When they discover a driver has committed a crime they drop their policy.
Fraud is often a way that people think they can reap quick cash. They may be desperate to get funds, but this is not the way to do it. Not only is the probability great that the person will get caught, but they will also get charged with a crime, lose their coverage, and any value in the vehicle that they owned. The risks are not worth it.
Car insurance can be provided by companies and just as quickly taken away due to the actions of the person on the policy. Illegal behavior such as fraud, DUI, and felonies are sure ways to lose coverage. Missing a payment, and reckless driving are other actions that make a policy owner lose their benefits.
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Article Source:
ArticleRich.com