Insider's Insurance

Congratulations! You found better coverage, service, or premiums and decided to move your insurance. This the point where mistakes can cause major headaches for you. These headaches will be caused by nasty letters from your mortgage company, unexpected cancellation notices from your current insurer, and even surprise increases in premiums from what you thought would be your new coverage.

Relax, the blunders can all be prevented with the right knowledge and planning. Without this knowledge and planning you can expect sleepless nights and several calls to your new insurance advisor wondering what is going on. If you or your advisor understands the 5 biggest mistakes that can occur during an insurance transition, calamity is easily avoided.

1. Mortgage company is not notified of change of insurance – Every bank requires insurance on a home that they financed. If a change is made to your insurance, your bank should be notified immediately.
2. Allowing your old insurance to cancel on its own – This mistake is interpreted to mean that you did not pay your bill and may have a negative effect on your insurance.
3. Not replacing your old automobile ID cards – This can cause major hassles if you are stopped by the police and your ID cards are out of date.
4. Not using the same effective dates – Using different effective dates from those on your old policy will create a gap in your coverage.
5. Not informing your new advisor about all losses or violations – This can result in a change in the premium once your policy is issued.

There are several other mistakes that can be made in the course of a transition, but an insurance advisor who is aware of them can make the transition very smooth for you.

This entry was posted on Sunday, January 17th, 2010 at 8:30 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.