Breakups are hard, especially when it’s your insurance carrier that calls it quits. But very rarely do providers sever ties without some justification.
Still, getting dumped by your provider could happen. Here are some of the reasons why it could happen to you:
• Failing to pay your premium or poor payment history. It’s pretty simple – if you don’t make your payments or make them on time, your provider is not going to be happy.
• Filing several claims in a short amount of time. Providers believe policyholders who file claims are likely to file more. So if you file multiple claims – even small ones – in a short period of time, you could be history
• Getting too many moving violations or tickets. Auto insurers can see problems when this happens.
• Risks associated with your property. Homes and vehicles left in disrepair are obviously huge gambles for carriers to make. If an underwriter sees your property is in need of major fixes that you’ve neglected, your provider will be tempted to cancel your policy.
• A Driving While Impaired arrest. This is another signal that you could be a major risk, and insurance providers may decide to take a step back.
• Not being truthful. Say you lie about your driving history or how many tenants reside in your home; insurance companies may find out and break things off.
What can you do to combat these problems? Here are five ways to avoid being dumped:
Be accountable and don’t abuse the system
It’s simple, really. Pay your premium on time each month. It’s a two-way street – you want a reliable provider in case disaster strikes, and insurance carriers want reliable clients. Paying on time is an easy way to show you want a long-lasting relationship.
Also worth mentioning: Don't file too many claims.
One way to do this: Raise your deductible – the amount you agree to pay on a claim before the provider takes over. That will make sure you only seek your provider's help when it's really necessary. Doing so will help you maintain an ideal claims history, making you a joy to insure.
Be honest
Don’t lie about who will be driving a vehicle, where you'll park the vehicle or your driving history in an attempt to get a lower premium. Likewise, don't neglect to tell your provider about your swimming pool or dog. Your insurance provider is going to check behind you, and it won’t be happy that you neglected to be honest...
Keep your property up to snuff
When you’re up for a policy review, an underwriter could conduct a curbside inspection of your home or vehicle. If the provider spots needed repairs – such as a leaky roof, pipes that are old and unsafe, or a bumper that’s hanging on by a thread – that are being neglected, you could be in trouble. There are huge risks associated with property in various states of disrepair.
To avoid these problems, take steps to make sure that your car and home are safe. In your home, keep the structure sound by repairing any damage that may cause your insurance provider to fret, and always blow out candles when leaving the room; unplug hot plates, space heaters, curling irons, and the like when you’re done using them; make sure the oven and stove tops are off; and take every precaution possible to minimize risks of fire, frozen pipes, etc. In your car, hide things such as GPS systems in your glove compartment to deter burglars from breaking a window and stealing them.
Be cognizant of repairs that need to be made and precautions that should be taken in day-to-day life.
Be a safe driver
Put away your phone, be alert behind the wheel, obey the rules of the road, wear your seatbelt and, if you decide to consume alcohol, establish a designated driver or call a cab. These simple acts will keep you out of harm’s way and prevent you from getting tickets, violations or a DWI. Your insurance provider will appreciate you making an effort to be a better driver and you’ll run a very low risk of being dropped.
Overall, just be smart
Your insurance provider wouldn’t just drop you out of thin air. There’s almost always a reason. Most of the time, the problems are completely preventable simply by using common sense.
Insurance is a game of balancing risk and reward. You pay a monthly premium and your carrier promises to have your back in times of peril. Be sure that you’re not too much of a risk to insure.
HomeInsurance.com is an online resource for homeowners and drivers across the country. Offering comparative automobile and home insurance quotes, consumers rely on HomeInsurance.com for the most competitive rates from the top-rated insurance carriers in the country. The HomeInsurance.com blog provides fresh tips and advice on a range of financial topics to help homeowners and homebuyers make educated decisions about their insurance purchases.
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