May 22, 2011

When Car Insurance Companies Must Inform Their Customers Of Policy Changes

Due to changes in the law, additional provisions or driving events, car insurance customers may find that their insurance policy has some differences that appear. Insurance companies are mandated to notify their customers of any changes to their policy, but it is up to the individual company to determine how that actually gets accomplished. Some states require that all legal notification, which would include insurance policy changes, be done through certified mail. This is regardless of the type of policy, so for a homeowners or car insurance policy, certified mail may be in order.

Each company has its own way of completing the task of notifying customers, and for some this can be a bit frustrating. Receiving a postcard in the mail of insurance policy changes can make some feel a little disheartened. Car insurance policies are a little different, because when there is a change made, there is usually an adjustment in the actual policy. If changes were not expressly shared with the customer and an accident occurred and resulted in damages that the customer is responsible for, then a lawsuit could be the next plausible step.

Customers may have two types of notifications presented to them regarding policy changes. The first is a postcard. This card may say something to help keep the customer aware that their final changes or new policy is coming in the mail shortly, or it may simply say to call the office for details and also watch the mail. The next step that insurance companies take is to send out the new policy. This policy will have all the new fees, policy updates and coverage within. This is a great way to comb through what the actual policy is, and if there are discrepancies customers can contact their insurance carrier and revise.

All aspects of the policy should be included when being notified of insurance policy changes. This is a vital step because if something is not disclosed, then it means it is not covered. Many car insurance policy carriers will try to contact the customer via phone, because car insurance is a state mandated insurance, and companies do not want to be at risk for not taking care of their customer's needs.

Changes take place, and when they do it is the burden of the insurance company to notify customers. They tend to take the time to make sure this is done correctly, and through a few different avenues to ensure the proper delivery of the information. Sometimes the changes are a good thing and can save money, but regardless of the cause of the changes, it is wise to always investigate what they are.