Isn't the ins company breaking the law if they drop a client? How does that work? Peopel have to be able to get to job, drive kids to school whatever, how can the ins co just drop someone????
2007-11-06 15:49:28 · 14 answers · asked by Lydia R 2 in Cars & Transportation ➔ Insurance & Registration
They drop high risk clients or credit risk (non or late payment) customers. Insurance companies are in the business to make money not friends.
They only have to give the policy holder notice, unless the customer does not pay then they (the customer) has broken the contract.
No one is given a guarantee to own a car or drive. It comes with a cost.
2007-11-06 16:00:21 · answer #1 · answered by Carl P 7 · 0⤊ 0⤋
The insurance company is not bound by any laws regarding having to offer insurance. After all, you are not made by law to drive. If you are a risk, they can refuse to insure you. After all, they are in the business of making money...and lots of it! There are companies out there that will insure you, though. It will just cost a small fortune. If you have lost your insurance because you're high risk, then maybe you should find another means of transportation? Unfortunately, for some people, like me, finding another way to go where I live would be near impossible. There is no public transportation out here. If I lost my insurance, and needed to get to work, I would have to move.
SC offers a program through the DMV where you register as an uninsured driver and it is legal. I don't know how it works, though, never had to find out. Maybe your state offers the same thing? Call the DMV, they will be able to help out there.
Check out this website.
http://www.assignedriskauto.org/
2007-11-06 23:59:12 · answer #2 · answered by Denise P 4 · 2⤊ 0⤋
Typically if you have insurance, and ti is dropped, it gets dropped because you failed to pay the bill, or you had lots of safety violations meaning you are no longer a good risk, that they can make money off of you.
Insurance Companies are Companies in Capitalism to make money. If they can't make money off of all of us, then they drop the those of us for which they cannot make money.
The government has a rule that you have to be able to drive safely, have liability insurance, etc. etc. as preconditions for driving.
Driving is not a right. If you are unable to drive safely (e.g. if you become blind), or cannot get or keep libaibiltty insurance, then you are no longer legally allowed to drive.
You need to get to work, but dannot drive.
Well then, you need to hire someone to drive you (taxi), or get ride from friend or relative.
Or find public transportation
Suppose your job is rural, with no taxi or bus out there?
Well if you can't walk, you need to get a different job, where there is public transportation.
As for kids to school ... did you know that this is more dangerous than riding in a school bus? Actually the most kids who get killed commuting vs. school are those off the bus, like pedestrian crosswalk, or waiting for the school bus.
2007-11-07 12:16:04 · answer #3 · answered by Al Mac Wheel 7 · 1⤊ 0⤋
Of course, your insurance company may choose not to renew your policy for many reasons. Among those reasons are tickets, accidents or other information which demonstrates that you are a high risk individual who is likely to make a claim. (Remember insurance companies only make money by taking your premiums without ever having to pay a claim on your behalf).
When a person makes several claims within a certain period of time (usually three years), the insurance company may not choose to drop you, but instead put you into a "pool" of other high risk drivers for whom the premiums are substantially increased. Some insurers will double, triple or even quadruple the the premiums for such high risk persons. Alternatively, the insurer may only offer insurance in minimal coverages to avoid the potential of paying a large loss on behalf of someone they feel is a bad risk.
2007-11-07 08:06:27 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Insurance companies usually drop coverage when a customer stops paying. Companies are not required to provide services that are not paid for.
The law does not place the responsibility on insurance companies. It puts the responsibility on the vehicle owner to secure insurance or to file a certificate of self insurance. However, the insurance companies have a legal requirement to report to the state when they cancel a policy for non-payment of premium.
Sorry .....can't pawn off the responsibility to have insurance on the insurance company.
2007-11-07 08:37:14 · answer #5 · answered by Boots 7 · 1⤊ 0⤋
Insurance companies aren't obligated to pay for anyone's crappy driving. If you don't drive safely you will get dropped and you need to stop driving or find another company.
But from a legal perspective, the reason it's legal is because there's no law saying you have to drive. So if you choose to drive without insurance, it's not your company's problem.
2007-11-07 04:06:33 · answer #6 · answered by Anonymous · 1⤊ 0⤋
no their not breaking a law they have the right to drop anyone,and that's the bad thing about it,they do this all the time,most people have real good insurance and then some cheap company comes along and promises cheaper insurance,and so they drop the insurance they have and go with the cheap company,then the cheap company finds out you have had an accident or a ticket and they drop you,guess what your old insurance company wont take you back,so you have no insurance now and cant find any cheaper insurance to go with,if you can get one good company stay with them, i been with my company for 30 years now,it pays to stay with one company in the long run,good luck on it .
2007-11-07 00:08:33 · answer #7 · answered by dodge man 7 · 1⤊ 0⤋
Insurance companies have a right to have any client that they choose. They drop clients for many reasons. Non payment of premiums (insurance bill) , to many claims, to many tickets. For instance. I have USAA for insurance. I lived in Louisiana during Hurricane Katrina. I had renters insurance through them. We were planning on moving to another state and I contacted my insurance agent. I was told that if I cancelled my renters policy for the current apartment I could no longer get renters insurance with them in the state of Louisiana. The reason is because of all of the claims that were filed due to Hurricane Katrina. It had nothing to do with me personally. Insurance companies are in this business for one reason and one reason only. MONEY. They want to make a profit. If for some reason you are taking away from their profit they will drop you. They are not breaking the law by doing this because you have no signed contract with them stating that they have to insure you. Also there are millions of other insurance companies that you can get insurance through.,
2007-11-06 23:56:43 · answer #8 · answered by D and G Gifts Etc 6 · 1⤊ 0⤋
Because there's no law that says any particular company has to insure YOU. I'm sure they had a reason for dropping you: excessive claims, failure to pay premiums, etc. You are free to obtain coverage with any other of the hundreds of insurance companies doing business in your state. If you drive without insurance it's your fault, not theirs.
2007-11-07 01:02:57 · answer #9 · answered by Scott H 7 · 1⤊ 0⤋
There is no law stating that a company has to cover drivers.
It is the driver's sole responsibility to get coverage, not the insurance company.
2007-11-06 23:53:14 · answer #10 · answered by Anonymous · 2⤊ 0⤋