Great Rates on Newtown Square Auto Insurance Available Now!
If you are searching for home, business, or auto insurance in Newtown Square Pennsylvania or the surrounding areas you have found the right place!
Call 215-646-5633 or click Newtown Square Auto Insurance for an online quote from top rated companies.
You can also use the Erie Insurance online quote system when you click Erie Insurance Newtown Square Pennsylvania.
In our previous article, we discussed the different ways some insurance companies are using to save money. To view the page Click here.
If your credit score is at a certain level insurance companies will not order a CLUE or MVR report. In the past this has been used to set your premium rates.
The CLUE report will show insurance companies the number of claims you have had in the last 7 years and the amount paid. The MVR report will show your driving record.
Insurance companies are saving millions of dollars each year by not running these reports.
Next we will discuss how this strategy could cost policyholders a significant amount of money down the road.
Why it is a Good Idea for Your Insurance Company to Run Your Reports:
It seems counter intuitive, but let’s say you have excellent credit score. However 3 speeding tickets are on your driving record. Your current insurance company knows about your tickets and greatly increases your rate.
Why is it important if the next insurance company doesn’t run your reports and you conveniently “forget” that you have 3 speeding tickets on your record? You can save some money, so why should it matter?
Note how one policy specifies your responsibility to disclose this information to your insurance company:
FRAUD AND MISREPRESENTATION
Coverage is not provided to any person who knowingly conceals or misrepresents any material fact or circumstance relating to this insurance:
(a) at the time of application; or
(b) at any time during the policy period; or
(c) in connection with the presentation or settlement of a claim.
If you don’t to tell your company about the 3 speeding tickets and they didn’t run your MVR when they issued your policy because you have excellent credit you misrepresented yourself on section (a) at the time of application.
The insurance company might argue that you did breach your contract at the time of signing your application.
Would your insurance company use this clause?
It depends on the situation and the company itself.
More importantly: Would you be willing to take the chance that in the event of an serious accident you are legally held responsible for involving injuries or death your insurance company could rescind your policy from its inception as if it never actually existed?
That’s a question only you can answer.
If as you were facing a large judgement the insurance company rescinded your Newtown Square car insurance policy would you now see the wisdom of being upfront with your insurance company right from the start?
It would be too late after the fact. In our opinion it is a good idea for the insurance company to run the reports upfront, just in case something “slipped your mind”.
In the next article we will discuss a situation that involves a large rate increase instead of a large legal judgement when companies don’t run reports initially from the start.
Better Rates for Auto Insurance in Newtown Square are Just a Call or Click Away!
Call Humphries Insurance at 215-646-5633 to speak with an agent or use our online insurance quote system when you click: