When you take an automobile insurance you enter in a contractual relationship with the provider. Essentially, the basis of this contract is the information you provided and the quotation given in response. The company will have to take these details as facts of the matter. It would be too costly to verify them all and there is no need for it unless there is a claim on the policy.
Therefore, the only person responsible for any mistakes or inaccuracies on these particulars is the policyholder. A car owner initiates the process that results in a policy issuance. They will probably have a clear idea what they are looking to insure and ask for it. Alternatively, they let the agent lead them through the available options to cover a vehicle by asking and collecting information along the way.
Regardless of the quote forms being filled by an agent on the phone or online by the applicant, it is always up to the applicant to make sure they are correct. A policyholder is expected to give accurate information to the best of their knowledge. In other words, they cannot withhold information or falsify it.
It is obvious that if you mention about the speeding ticket you received last month your rate will be higher. This may ruin our chances of getting affordable car insurance. However, it needs to be understood that this information is essential for a company to offer a fair premium for the risks associated with a particular applicant.
This does not mean they will go over them whenever you have a claim and look for ways of denying payment. If you did not know about the fact you cannot do much about it. For example, it may be that you got caught by a speed camera and you were not aware of it at the time. When you receive the penalty notice you may decide to challenge the order. If you fail and the ticket stands, you will need to inform the insurer of this fact.
In most cases, auto insurers will want to collect retrospective premiums starting from the date the ticket issued, in the case of the example. If particular information was materially important enough to increase the premium offered they have every right to demand the missed out revenue even at a later date. But, it is likely that many people will get away with it.
However, the consequences can be heavier in certain situations. Vehicle insurers regularly check traffic tickets and accidents data. It would be silly to think that they would not and cannot. They can and will. So, it is better to be straight about it and use different solutions to find lower rates. Shopping around carefully for lower quotes is one of the simplest methods of bringing down the costs.
Changes in the circumstances at a later date should be informed in a timely manner as well. Life goes on and we need to make changes to our coverage levels, drivers insured or residential address we initially provided. This is a key requirement of a typical automobile insurance policy.
There may be small upward or downward premium adjustments, but the information should be kept up to date. If you do not tell about another person who has regular access to your car, you cannot blame the insurer for not paying the damages this person caused at a later date.
It is important that you find a decent coverage at reasonable prices. In the same way, you need to know basics to stay straight and avoid problems down the road. For further readings you can check http://www.storybuildersbooks.com where you will find a few of the similar articles. And as the name suggest you can get quotes as well.