You’ve been making all of your auto insurance payments on time. And surprisingly, when the next bill comes in the mail, you see that there is an “Intent to Cancel Notice” or “Notice of Cancellation” (or something similar) included on your bill…. What’s going on?!
I used to get calls like this from worried customers every once in a while. But recently, it happens a lot more often. In the past people were likely to get these notices after making a payment that was a day or two late, after the notices were already mailed out….
But now, people who always pay on time are also getting these cancellation notices…. The terminology used on many of these cancellation notices use complicated lawyer lingo that most people don’t understand. This sometimes causes people to freak out and wonder what is going on….
No Worries. Relax!
The auto insurance companies only do this to comply with state laws. Let me explain…
In most states, there are laws regarding the procedure a company must take before they can cancel a policy for non-payment of premium. Before a company can cancel a policy for non-payment, they must first send out a cancellation notice via U.S. mail. Auto insurance companies go about complying with that law in one of two ways:
1. Many companies will mail out a cancellation notice the next business day after the policy is a day or two late on a payment. This notice explains that if the payment isn’t made by such and such date, the policy will cancel.
2. Other companies will simply include a cancellation notice on the regular bill itself, so that no other mail needs to be sent out if payment isn’t made on time…. More and more companies are switching to this option because it saves them a significant amount of money versus waiting on a payment to become late and having to mail out another letter. This is what’s causing the confusion.
So don’t be alarmed if you’re paying your policy on time and see one of these cancellation notices.
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Some (not all) auto insurance companies offer you the choice between selecting a 6 month policy or a 12 month auto insurance policy. A lot of people ask me if there’s a difference, or if it is better to choose versus than the other….
The answer depends on what is on your driving record…. If you’re driving record is clean, it really doesn’t matter…. But if you have accidents, tickets or any other violations that are on your driving record, you’re better off going with the SIX MONTH policy.
For those with clean records:
Choose the term and payment plan you like best and don’t waste another thought worrying about it. If your driving record is clean, it really doesn't matter which policy you choose.
For those with accidents, tickets and violations:
Eventually, those dings on your record will fall off, as far as insurance ratings are concerned…. Some companies go back only 3 years, other companies go back 5 years, but minimize the severity after the third year. But regardless, the time will come when that accident or ticket “falls off”…. But once you reach that date, you still don’t get charged a lower premium until after the expiration date of your policy (you should see the decrease on your renewal offer)…. So depending on dates of occurrences and dates of your policy term, a 12 month policy could drag out a longer time period that you would still have to pay the surcharge for whatever violation…..
So stick with a six month policy, if you have any violations…. For all others, it really doesn’t matter.
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What is a Virginia FR44 Auto Insurance filing?
An FR44 auto insurance filing is a rare form of state filing (only Virginia and Florida have them) that drivers need to have attached to their auto insurance policy in order to keep their driver’s license valid.
Most drivers are required to carry an FR44 filing after getting a DUI, or some other type of criminal charge. An FR44 simply attaches onto your auto insurance policy and acts as a “tattle-tale”….
That is, if an auto insurance policy that has an FR44 attached to it ever cancels, the auto insurance company is required by law to “tattle” on you to the Virginia DMV. When this happens, your driver’s license will be suspended again until you start another active FR44 attached policy (and you will likely get hit with another reinstatement fee also).
What’s the difference between an FR44 filing and an SR22 filing?
The only difference between the two is that with a SR22 filing, you must carry at least the Virginia state minimum liability level of coverage, which is 25/50/20. With an FR44 filing, you are required to carry at least DOUBLE the Virginia state minimum liability coverage, which is 50/100/40…. Other than that there is no difference between the two. They work exactly the same other than the FR44 having the higher liability requirement.
How long do I have to carry an FR44 filing?
For the vast majority of drivers, you will need to keep the FR44 active for three years… But this could be more or less, especially if it was court ordered.
If you own a vehicle, Click here to get a Virgina FR44 Auto Insurance quote.
If you do NOT own a vehicle, Click here to get a Virginia Named Operator FR44 quote.
A named operator policy is a special type of auto insurance policy for people who need to have auto insurance liability coverage but don’t have a vehicle to insure. A named operator policy offers liability coverage, medical payments coverage, and uninsured motorist bodily injury coverage just like a regular auto insurance policy does. However, it does not offer comprehensive or collision coverage, since there is no vehicle to insure.
You may be wondering why someone without a vehicle would need auto insurance… You would be surprised.
Reasons someone would need a named operator insurance policy:
Other things to keep in mind about a named operator policy:
What happens if I buy a Named Operator policy and then buy a vehicle shortly afterwards?
No problem! If you buy a vehicle while having a Named Operator policy, all it takes is a 5 minute phone call to your agent. A Named Operator policy will automatically convert to a regular auto insurance policy once you call your agent and add your vehicle to the policy. Just be sure to make that change before you drive your new vehicle.
Click Here to get a Named Operator Auto Insurance Quote.
There are two types of golf cart insurance policies: an exclusive stand-alone policy or golf cart insurance that you attach as an add-on to your homeowners policy.
Both types of policies are fairly inexpensive and are usually about the same price. But as you will learn in this article, there sometimes can be major differences with coverage between the two....
An exclusive standalone golf cart insurance policy not only offers more types of coverage, but it also usually offers higher levels of coverage for about the same price.
That is not to say that all golf cart insurance policies attached to a homeowners policy are lousy. There are some homeowners insurance companies who do provide good coverage for golf carts attached to it, but not many!
You have look closely at the coverage and the levels offered. Because some attached homeowners policies offer very lousy coverage when it comes to insuring golf carts.
For instance, many attached golf cart policies have unwritten unreasonable boundary restrictions. Some of these restrictions can be flat-out silly!
For example, there are some attached policies that won't even cover you when your golf cart is off of your property. You must look closely to find out where exactly (and more importantly) where not exactly that your golf cart is covered. Furthermore, there are not as many coverages are offered on most policies attached to a homeowners insurance policy as what’s offered on a standalone golf cart insurance policy.
With an exclusive golf cart policy, many coverages are offered that you would be familiar with from a regular auto insurance policy. These coverages include:
There's not many qualifications on a golf cart insurance policy, only three:
Golf Carts and Occasional Road Use
This is where you need to be careful about what coverage you have if you occasionally ride your golf cart in places where you need to cross, or travel on public streets. This includes leisure rides on slow neighborhood streets....
Most standalone golf cart insurance companies will insure you for that (I can't say that all companies are ok with that, I only know that all the golf cart insurance companies that I carry are fine with it).... But if you have at attached golf cart policy, you need to check on that!
Golf Carts that are Licensed for Road Use.
Many small towns are passing ordinances making it legal for golf carts to be licensed for road use. If you decide to register your golf cart as being street legal, be advised that your choices of golf cart insurance companies become limited, even with standalone policies.
For example, of the standalone golf cart insurance companies that I sell, only about half of them will insure a golf cart licensed for road use.
It's still doable, but may take a little extra shopping around for the right coverage and price.
Need Help finding the right Golf Cart Insurance policy for you?
If you live in Ohio, Indiana, Michigan, Pennsylvania, Virginia or West Virginia, I will be happy to help you. Click the link below and I will find you the right policy for the right price.
Get an Online Golf Cart Insurance Quote
Short answer: Yes, you can! But conditions apply…. Here’s the deal …..
There are many auto insurance companies that will not start an auto insurance policy with any rated driver having a suspended license. But the good news: there are many auto insurance companies that will allow a suspended driver to start a policy. However, the policy is issued on a conditional basis…..
For many drivers who are on the verge of having their license reinstated, obtaining auto insurance (and in many cases have a state filing attached to it) is usually the last step needed before their license becomes valid again. Many auto insurance companies understand that there is a catch 22 involved: You can’t get a license reinstated without auto insurance and you can’t get auto insurance without a valid license. To solve this problem, some companies will allow you to start a policy before your license is reinstated.
But make no mistake, the policy is issued with the understanding that you will have a valid license very soon! Generally, you’re only given a few days to get your license situation straightened out (some companies may only give you a couple days). It won’t be long before they re-check your license status. If you don’t have a valid license by time they re-check, you will most likely be sent a cancellation notice.
So make sure you are ready to move quickly. Don’t buy your auto insurance policy until you’re set to get your license activated, and be ready to move quickly!
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Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..