by renditioner » Fri Aug 22, 2008 04:44 am
Can I resume my auto insurance once it has been cancelled ? I have a car ,which I wasn't driving some 3 months back ,so I didn't need the insurance also .Now I want to use the car again .Can I just ask my insurance company to activate my previous insurance or do I have to purchase a new one ?I don't want to go to the insurance agent and pay him the finders fee for a new insurance policy .The finder fees are too heavy ...so is there a way to get around this finders fee and resume my insurance?
Posted: Fri Aug 22, 2008 09:33 am Post Subject:
Well, IMO it won't hurt asking the insurer to reinstate the cancelled plan. The insurer may allow you to reinstate your cancelled policy if you promise to pay the premium of all these three months when the policy wasn't at place, though it'll depend upon the insurer's discretion. However, it may not cost you less than finding a new plan.
With the new plan you have the option to shop around to get competitive rate and better coverage. Many of the companies put their rates on theirs sites from where you can compare the rates.
Secondly, you're not required to pay for the time period when your car sat idle, thus saving a good amount of money.
Moreover, while reinstating the cancelled plan the insurer may put you at the high-risk bracket, which implies a premium rate alternation for a time period. However, the policy may vary between the insurance companies. Hence, your insurer may allow you to reinstate the policy without a rate change.
~Jeremy
Posted: Fri Aug 22, 2008 09:42 am Post Subject:
Most of the insurers allow the policy holder to reinstate a plan within 30 days time period without paying any penalty. After this 30 days period, the policy will automatically get cancelled.
The policy document might have described the process to reinstate a cancelled policy. Hence, rereading the policy document may help you to get some idea.
DazzlingDiamond
Posted: Fri Aug 22, 2008 10:03 am Post Subject:
renditioner, you need to check it out with your insurance company. Placing a call to the insurer's office is a worthy way to find out about it.
Reinstating the plan will largely depend upon the policies set by the insurance company. And if your policy has lapsed due to non-payment of premium, but you have no history of default in the past, most of the insurer may allow you to reinstate the policy. Again, it'll depend upon the company's policy.
However, even if the insurer agrees to restore the plan, he may put some binding clauses to prevent you from cancelling the plan in the future.
Posted: Fri Aug 22, 2008 10:42 am Post Subject:
Ok guys I will call my insurance company and ask what can be done about my present situation.And thanks for giving your valuable tips
Posted: Fri Aug 22, 2008 11:20 am Post Subject:
What is this finders fee business? How much is it and what exactly is it? We don't have anything like that in the states I deal with...
Posted: Fri Aug 22, 2008 02:09 pm Post Subject:
"In the United States, a finder's fee is the compensation given to an intermediary in a business transaction. Usually, there is a casual relationship between the one party and the intermediary (the finder), another relationship between the finder and the second party, and the two parties of the transaction would not have met if it weren't for the work of the finder. Such compensation is common in business and is regulated by contractual agreements and law in the United States.[1] A finder's fee can also be a gift from one party of the transaction, who feel morally obligated that the profits of the transaction be shared with the finder for making that transaction possible." This is from Wikipedia . You can check the full article here http://en.wikipedia.org/wiki/Finder%27s_fee
Posted: Fri Aug 22, 2008 08:56 pm Post Subject:
I know usually it is 30 days after the cancellation. Then we have to write a new policy.
Posted: Fri Aug 22, 2008 09:16 pm Post Subject:
Thanks reconditioner, but I know what the term means...what I meant was how is that any different than an agent writing a policy? They make commission on that policy...so what's with the finders fee? Or is there someone besides the agent involved, and if so why on earth would anyone EVER pay that when nearly all companys offer direct buy.
Posted: Sat Aug 23, 2008 05:11 am Post Subject:
Yes, I'd quite agree with the 30 days thing..& also that it would depend on your agreement with your carrier..but I'd rather believe that theres every possibility of a premium hike..considering factors like your chances of disrupting your clean driving history as also the possibilities of your paying late premiums within this time frame. What do ya think!
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