My Auto Insurance Was Just Canceled – What to Do?
Reader question:
Is it easy to get auto insurance in California after you’ve had your policy canceled?
Margeret
Thank you for asking, Margeret.
Actually, it can be pretty hard to get California auto insurance if you have something on your record like a previous cancellation by a car insurance company. This is why it is so important to take care with all of your automobile insurance dealings because if you don’t, then you will have to pay the price. And that price can be as much as a ten percent increase, and that’s only if you can find a company for auto insurance that wants to give you coverage at all.
When you go looking for auto insurance, the company will be able to look at your CLUE report, which aside from containing your claims history, will also have your previous cancellations and nonrenewals. This may influence them to deny your request for coverage, but if they do take you on then they might make you pay your entire yearly premium up front instead of allowing you to do the month by month installment. This can be a good thing for some people, because it is actually slightly more expensive for the installment plan. However, most people don’t have that much money at once.
Another thing that having your auto insurance canceled is that it will affect your credit score. Not all auto insurance companies report to credit agencies, but it is definitely something to think about even if they say you don’t, because most wouldn’t give a straight answer on this. Credit scores are also used hen determining how much you will pay for your auto insurance in California, and if you have a bad credit score, then that price could be pretty high. Even if your driving record is otherwise stellar, it could still hit you hard.
If all else fails, you’ll have to either go to a company for auto insurance in CA that sells policies to customers who are considered high risk. If you do this, you will pay more. And if no one will accept you, then you will have to consider going with the high risk pool for auto insurance which costs even more.
Cheers,
Fashun Guadarrama.
Why Does My Car Insurance Company Make Payment to the Lienholder Not Me?
As I’ve mentioned several times, I’ve got a 2007 PT Cruiser that I’m making payments on. It’s a six year loan (side note: never get a loan over four years), and I’ve only knocked off a couple of months so far, so I still have a few more years to go. However, if I were to wreck that car in some way, then I would have to deal with the dealership and the bank that I’m getting my car loan for when I make my Anaheim CA car insurance claim, even if the vehicle isn’t totaled.
This will throw a cork in your problems, because if you are still buying a car, then when you wreck it (when it’s your fault), the insurance company is going to mail you your claim check with both your name and that of your lienholder. You can’t cash it with just your signature, so you have two options.
- Mail it to the lienholder, or
- go to them.
Whatever you choose, it might be a little longer than you thought to get your vehicle back, which is why it’s a good idea to get rental car reimbursement coverage on your car insurance policy.
The first thing that you need to do is take your car up to the dealership. They will then have someone from the bank inspect your vehicle. Occasionally they will come straight to where you have your car, but this is rare and unlikely. After that, you will have to send the bank a statement from the repair shop with the bill, as will as photographs of your fixed vehicle and the insurance claim check. They sign the check, and send it back.
So your car might be all fixed and ready in a day, but until that check is signed by the lienholder, you’ll be without.
Types of California Car Insurance – Which is Best?
There are several types of car insurance that you will need in California, an at-fault, tort car insurance law state. While not all are necessary, in order to abide by California car insurance law, you must have at least the three basic types of liability coverage, which can be bought either at the state minimum or at a number above this. California car insurance law requires you to have a minimum of five thousand dollars of property damage liability for when you get into an at fault accident. It isn’t much, and most California car insurance companies suggest that you get at least fifty thousand to prevent problems with being underinsured.
What is California car insurance property damage liability?
When you get to into a car accident that is caused by your own negligence or intent, most of the time this accident will involve someone else. Unless you get into the accident on your own driveway, your California car insurance company will probably have to pay out a property damage liability claim. What this type of coverage takes care of is the damage done to whatever you hit–be it a house, a mailbox, or even, most commonly, another car entirely. There is a separate type of coverage for injuries to another person.
What property damage California car insurance coverage does not take care of is any damage inflicted on your vehicle, even if you crash your vehicle into some part of your own property, such as another vehicle of yours. If this happens, you will have to depend on collision car insurance.
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