Misconceptions About Auto Insurance Companies

Auto insurance firms give you a sense of protection, knowing that you’re covered incase of an accident or loss. However, some drivers are uncertain about auto insurance companies and the cost of their coverage. In this post, we’ll discuss the most common myths about auto insurance companies and debunk them.

Insurers Cannot Cancel Your Car Insurance Policy Without Notice.
An insurance policy is an agreement between you and the insurance company. As a policyholder, you have certain rights. Generally, most insurers must honor your policy during the term. However, they can cancel or refuse to renew your auto insurance policy if you do not meet their conditions or if they find you too risky.

Insurers Cannot Charge Any Rate They Want.
One common misconception is that insurers cannot charge you whatever premium they want. While your state regulates rates, the insurance company can still determine the rate they want to charge you. The Division of Insurance, Office of the Insurance Commissioner, or Department of Insurance exists to protect the
policyholder from unfair charges and ensure that all companies stay secure to payout claims.

Insurers Can Deny Your Application.
Auto insurance companies utilize risk assessment to calculate the likelihood that you may file a claim. Although car insurance is required in the US, insurers are not obligated to provide coverage if you are considered a high-risk driver. However, you have the right to know why your application has been denied.