Cancelling Insurance vs. Not Renewing It

There is a sizable difference between cancelling your auto policy and not renewing it.

Insurance companies can only cancel a policy that has been effective for more than 60 days except when you fail to pay your premium, commit fraud or misrepresent yourself, or have your driver’s license suspended or revoked.

When your policy is not renewed, you or your insurance company chooses not to renew it when it expires. How much time you’re given before your policy is dropped depends upon the state’s laws and the insurer must explain why they are ending it. If you believe the reason is not fair or need further clarification, you should call your insurance’s consumer affairs department. If you’re still not satisfied you should call your state insurance department.

In addition, your insurance company may simply choose not to renew certain policies based on your geographic location so it may not even be your fault. Conversely, if you are caught engaging in risky behavior such as drunken or reckless driving, your premium could go up or the policy could be not renewed.

Finally, if your policy is dropped that does not necessarily mean you will be charged a higher premium by another insurance company.

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Legislators may change a state law allowing foreign nationals access to driving privileges and car coverage

The North Carolina House of Representatives has given the go-ahead to a bill that could limit foreign nationals’ access to car insurance.

Current state law allows non-U.S. citizens to use consular identification cards as a means for getting basic state amenities, such as driving privileges, that require legally accepted forms of I.D. In addition, the consular IDs make it possible for non-citizens to have access to car insurance with no drivers license.

But the bill, which received a favorable vote from the House on Wednesday, would make the consular cards unacceptable forms of identification and proof or residency. This would in effect cut off non-U.S. citizens’ access to driving privileges and insurance coverage in North Carolina.

Consular identification cards are issued by foreign governments to help identify their citizens when they are outside their home countries. Since the early 2000s, the existence of the cards have sparked policy debates in the United States at both federal and state levels out of concern that they are not reliable and could be used to create fraudulent identities.

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Long term care insurance can be the differenc between being poor in old age or comfortable. Planning for your future involves more than saving in a 401(k). Consider insurance to provide for your health care needs.

It’s no surprise that healthcare costs are soaring. The cost of a nursing home today is about $71,000 annually, or about $200 a day. The cost for assisted living is about $32,000 a year or $88 dollars a day.

And home care price tags are up about 13 percent. The average hourly rate for home health aides is about $25, according to a survey by Genworth Financial.

In today’s top tips, we’ll tell you what you need to know about long term care insurance.

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Longterm care insurance is becoming increasingly a better choice in the light of todays health crisis. It’s not alarmist to think that you’ll need long-term care in your lifetime. Among Americans who reach their 65th birthday, 45% will have to pay for some kind of long-term-care services, according to the actuarial firm Milliman.

Yet the decision whether to buy a long-term-care insurance policy, which pays out for nursing-home and certain at-home care, is one of the toughest calls you’ll ever have to make. Insurance could preserve your estate for your heirs and save incredible heartache. On the other hand, it’s expensive and chances are you won’t need it.

Unlike most stories you’ll read in LocalInsuresearch.com won’t give you a definitive answer. But we’ll tell you what to consider as you weigh your comfort level with playing the odds.

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The cost of long term care is set to soar with baby-boomers retiring at the rate of 7000 a day in 2011. Some insurance decisions are easy. Take life insurance. You know you need it to replace the income your spouse and kids would lose if you died. Insurers don’t have much leeway to dispute claims for death benefits because “deceased” is a pretty definite condition.

After you decide how much to buy, you can compare various term policies, see which are the cheapest and most practical, and buy the least expensive one that fits your needs.

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Whether it’s downright truth-twisting or conveniently ‘forgetting’ to mention an important fact to your insurer, is it ever okay to lie in the hope of a lower insurance premium?

It’s likely that at some point or another most people have considered lying to their insurer. According to the Department Of Insurance, 16% of us wouldn’t rule out making an exaggerated claim on our insurance.

And with the knowledge that certain personal details such as your age can have a significant impact on how much you’re charged for premiums, it can be tempting to stretch the truth a little and hope your insurer doesn’t find out. But is it ever worth it?
When is it ‘lying’?

When applying for insurance you’ll need to declare everything about your circumstances including your age, where you live, your occupation, your marital status, and much more besides. This information is used to determine your level of risk and therefore the cost of your premiums.

For example if you were applying for health insurance you’d need to let your insurer know of any pre-existing health conditions or if you are a smoker. If you were applying for car insurance you’d need to declare the main driver rather than naming someone who you know would be perceived as a lower risk driver but who never drives the car.

If you have any convictions, spent or unspent, these need to be declared when taking out any kind of insurance. Failing to let your insurer know of any of these circumstances is very likely to land you in hot water.

You might think that if you aren’t creating a complete fabrication but rather just omitting certain details from your insurance application or claim, it won’t be classed as lying. However the practice of not owning up to something, i.e. withholding information that you are well aware of is known as non-disclosure and is just as serious as making up a complete falsehood.

So What Will Happen If I Lie?

Bending the truth about the number of miles you drive or telling your insurer you’ve never smoked when in fact you quit only two years ago might seem like a harmless white lie. However, the truth is this is one white lie that could end up costing you thousands.

Your insurer will find out if a claim you have made is fabricated or if you have been economical with the truth on your insurance application.

At the very least any claim you make will be turned down and your insurance policy invalidated, making every penny you have spent on premiums an utter waste.

You could also receive a fine, be prosecuted, or even receive a prison sentence.

There are plenty of other ways you can secure lower insurance premiums that don’t involve dishonesty or breaking the law. These include increasing your voluntary excess, paying for your policy in one lump sum, and taking advantage of discounts – and none of these methods will land you in jail.

Lying to your insurer is a serious matter and can be classed as fraud. As such you could get a criminal record and would find it difficult to get any kind of financial product in the future.

When you take into account the potential consequences of lying to your insurer there’s only one conclusion to make: it’s just not worth it.

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