Does insurance cars have the right to investigate old inusrance policy with other companies?

Question

Hello, My car was stolen from me and did not get anything from insurance company because I was not covered. People are telling me to stay with my first insurance company though I did not buy a new car yet and then switch to a new company, but I want to cancel. Now if if the new insurance company asked me about the reason y I canceled with the first company, what should I say? I am afraid my premium will go up if they know I had my car stolen. If I did not tell them, will they have the right to contact my old company to find out the reason? I am really not sure!!
Some advice please
thanks

Soryy, I tried to post this a gian. I am in Canad. not sure if this makes a difference. I should have also said , I already requested cancelling my policy. not sure if I should contact them to and keep it till I get a new car and find abetter insurance deal.

Answer 1

The new insurance company won't care why you're leaving the old one....they just want to know if you've ever been cancelled before and how long you've been with, or without, insurance coverage.

The only time they check with other carriers is if you tell them you didn't have an at fault accident but your CLUE report says something different...but they'll call you first to clarify & if they need additional info they'll either ask you for it or go to your old carrier for it.

Either way, a stolen car isn't a big deal.

Answer 2

Let me try to clarify this for you, You should stay with your insurance company for several reasons. First, if you build a relationship with your insurance company, assuming you stay ticket and accident free, more likely your premium will decrease over time. You also do not want to cancel your insurance policy right away. If you know you are getting a replacement car soon, even a month or two from now, then keep your policy. Some insurance companies have a no car policy, just for the purpose to avoid a lapse in coverage. When you have a lapse in coverage and start a new policy, you are going to pay higher rates. Also, the insurance companies do not really care why you terminated your previous policy, as long as you weren't dropped from your policy. They ask you up front about any tickets, at fault and not at fault accidents to give you the closest premium they can. They pull your DMV record and CLUE report, kind of like a transunion/equifax for car insurance companies, and adjust your policy if they need to. I hope this helps. Good luck.

Answer 3

You don't need a reason to switch companies, people do it all the time. Your old insurance company wasn't out any money so why would they report it? Enjoy your new car when that time comes.

Answer 4

any time any insurance company is going to insure you they have the right to investigate you about old or other companies,and they usually do this,that's why after a month or two some people do get canceled for no reason,but they can request prior information on you from other companies if they choose to do so,,good luck.

Answer 5

once you've all the place of work artwork then i'm particular you've were given a stunning good case. verify you save carry of the unique copies. If the reassurance broking service/corporation decide on you to deliver data, deliver them a photocopy! once you're contained in the united kingdom, BBC shopper have some solid suggestion. shopper Direct ought to have concepts on what to do next too or contact voters suggestion. Watchdog ought to truly have an interest! solid success!

Answer 6

Kim is right - Your old company didn't pat out a claim so they won't record it and say anything to the new company. All the new company cares is how many times the old company had to pay out (sort of a clue as to how many times they might have to pay out)

Answer 7

Insurance companys have ways and means of finding out anything they want, weather you like it or not, with or without your permission. They are all in one big kettle togeather.