Cancellation and non-renewal may seem like they have the same affect on you, but they are very different things. Cancellation is when the insurance company stops a policy before the end of its term. Non-renewal is when the company decides it will not allow you to continue your policy to a new term. The affects on your future insurance companies is not allowed to cancel a policy that has been in force for more than 60 days except:

* If you fail to pay the premium.
* You have committed fraud or made serious misrepresentations on your application.
* Your driver’s license has been revoked or suspended.

Non-renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Most states require that your insurance company give you a certain number of days notice and explain the reason for non-renewal before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don’t get a satisfactory explanation, call your state insurance department. There are regulations restricting non-renewal reasons.

The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so you shouldn’t necessarily think the non-renewal is because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise and you may not have your policy renewed.

If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company. If your policy was canceled, then you may be required to pay higher premiums elsewhere, or may even have trouble finding other coverage. Find out how companies are determining your rates. This could help you save a lot of time and money.

Source: autoinsuranceadvocate.net

When you are looking for auto insurance, you better be sure to check if the insurer offers a 6 month or 12 months payment plan to help you manage and direct your auto insurance payments better. And many auto insurance providers offer a variety of discounts that even includes alumni discounts. So if you are a college student, make sure to ask if your college or university is qualified and entitled for a discount. When you are starting on your own, every detail and information helps. College students especially do not consider the expenses of getting caught without auto insurance or the expenses for getting into an automobile accident.

During holidays, police authorities are in full alert for drivers under the influence of alcohol. Cheap car insurance quotes and rates depend on all drivers that keep claims at a minimum. Memorial Day is a good celebration for family gatherings and to remember loved ones but always keep in mind that Memorial Day is not about partying and reckless driving and speeding. Not only will it help you avoid automobile accidents but it also helps in saving gas. But if this cannot be avoided, you better be prepared with your car insurance and you better make sure that you get best insurance rates.

Your insurance company promises to return your vehicle to its pre-accident condition after you’re involved in a crash. Unfortunately, the definition of “pre-accident condition” is hazy at best, and the use of original equipment manufacturer (OEM) parts at repair time could develop into a tug of war.

OEM parts are manufactured by the maker of your vehicle. Non-OEM parts, often called aftermarket or generic parts, are made by third-party vendors. Many insurance companies recommend non-OEM parts for the repair of damaged vehicles to keep insurance costs down. The industry sees non-OEM parts as quality replacements that are guaranteed and a perfectly reasonable alternative to OEM parts, and less expensive.

Insurance policy coverage requires repairs that use “certified” parts, parts of “like kind and quality,” or “functionally equivalent” parts. These are commonly called aftermarket crash parts. These aftermarket parts usually cost less than genuine OEM parts.

Many consumers aren’t aware that their car insurance coverage may allow use of aftermarket parts. One of the easiest ways for for you to ensure you get the highest quality parts is to choose an insurance policy that assures use of OEM parts. Read your policy carefully and ask your agent before you have a claim.

State Farm issues repair estimates using only OEM parts for exterior crash parts, although the company may prescribe aftermarket parts for non-crash components, such as batteries and headlights. State Farm sometimes also recommends recycled crash parts, mainly for older vehicles, when it believes a recycled part will restore the vehicle to its pre-loss condition.

You are certainly entitled to demand OEM parts after you crash your car, but your insurance company might not pay 100 percent of the repair bill if you do.

“We have an obligation to keep the cost of auto insurance down for all of our customers, whether or not they’ve been involved in an accident. If we paid for higher-cost OEM parts when non-OEM parts would allow us to return the vehicle to its pre-accident condition, we would overpay claims, which would result in higher costs to our customers,” says a Progressive spokesperson.

Progressive policyholders can request that OEM parts be used for repairs, but they will have to pay the cost difference between the OEM part and aftermarket part if the Progressive claim representative believes that an aftermarket part is appropriate.

The Insurance Institute for Highway Safety (IIHS), which conducts crash tests, maintains that non-OEM parts do not degrade the safety of a vehicle involved in a crash. The IIHS refers to crash repair parts as “cosmetic parts.” According to IIHS, the source of “cosmetic parts” is “irrelevant to safety because the cosmetic parts themselves serve no safety function. They merely cover a car like skin,” with the exception of hoods, which must buckle properly during impact. And the IIHS says that “there is no evidence that hoods from aftermarket suppliers fail to perform as well as original-equipment hoods.”

Via[Car Insurance News]

for further reading : Are you entitled to brand-name repair parts? Know You’re OEM Rights!
via [Insure.com]

In the United States, there are some imperatives before you can actually hit the road and drive away – and it’s different when you’re buying a car or if you’re renting one. Nevertheless, the ultimate basic is to get a car insurance. The proof of having acquired an insurance gives the go signal that the car you bought or rented can be driven. For rented cars, specifically, the insurance must cover the period of rental. Car insurance is also particular with the age of the driver. Drivers who are below twenty-five years old are charged with higher premiums because they are considered as a high-risk group.

The basic policy must include coverage expenses for damages to other vehicles and persons that are part of the accident. Protection against an uninsured or under-insured motorist who caused the accident is also required.

• Ask that your car be taken to a secure location where an adjuster or appraiser from your insurance company can have access to it. Some municipalities require that your vehicle be taken to a Collision Reporting Centre or police station before it goes anywhere else.
• Contact your insurance company, if possible, for information on towing and where to take your car to be repaired.
• Consider having your car towed to a preferred car repair shop. Some insurance companies use preferred repair shops where they have an agreement that guarantees your vehicle will be repaired to the highest possible standards. For more information, contact your insurance company.

via [Effective Car Insurance]

it is very important to equip yourself with knowledge about insurance accident scams to avoid being a victim. Here are a few tips on what to do to avoid car insurance scams:

• Make sure the tow truck has a municipal license number on its side before you use its services.
• See if the tow truck is affiliated with a reputable company such as an automotive roadside assistance group or automobile association.
• Ask if the tow truck has a police contract.
• Listen for obvious clues. Does the driver recommend a particular repair facility without being asked? If he/she does, this might be an indication that a referral fee arrangement exists.
• Carefully read everything the tow truck driver asks you to sign.

via [Effective Car Insurance]