In most states, when an accident occurs, one party is generally considered to be at fault and must cover the injuries of the other driver and their passengers. In some states, known as no-fault states, medical bills are covered by each driver's individual personal injury protection (PIP) coverage, rather than the at-fault driver's insurance. Under section 758.5 of the California Insurance Code, an insurance company cannot require that a car be repaired at a specific repair shop. Unless there is a specific notification procedure in the insurance policy, the insured's verbal notification to their insurance agent may be considered sufficient to activate automatic coverage for a newly purchased vehicle.
This termination period for cancellations gives insurers the time and opportunity to verify any underwriting information about a completely new risk, in order to confirm that they want to insure it. Keep in mind that many insurers consider your credit history in the underwriting process, in accepting or refusing your application, or in determining your level of qualification (if the insurer has a multi-level rating structure). An insurer cannot deny an applicant who holds a New York driver's license for auto insurance solely on the basis that the applicant has not owned or insured a vehicle for the previous 39 months. An insurer cannot deny an application for car insurance based solely on the geographical location of the risk or the producer.
On the other hand, many older people can benefit from insurers that vary their prices depending on the number of miles traveled by a car each year, since they can drive less than the average insured. You can ask the agent, broker, or insurer about their practice regarding the non-renewal of insured persons and the insurer's surcharge policy. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy. Keep in mind that most insurers will consider any member of your household with a learner's permit to be an insured operator of the vehicle for purposes of qualifying your policy, as this represents greater exposure.
However, the Insurance Act prohibits an insurance company from refusing your application solely on the basis of credit information. There are some insurers that only write in certain regions of the state as specialized or regional insurers in certain regions of the state. The reasons why an insurer refuses to accept a risk vary from company to company, and a risk rejected by one insurance company may be considered acceptable by another. Most automatic coverage provisions require the insured to notify the insurer within 30 days of purchasing the new vehicle if the insured wants it to be covered by the existing auto policy.
The Insurance Act also prohibits an insurance company from refusing to issue a policy or terminating it on the basis of race, creed, color, nationality, disability, sex, marital status, or advanced age of the insured or applicant.
