Archive for July, 2008
Reader’s Question:
I’m running short on funds so I’m thinking of paying the auto insurance bill a little late until my husband’s next pay day. We’re from Aurora, IL. What would be the consequences of paying late? Can I ask for a grace period from my auto insurance company?
Linda
Aurora, IL
Unlike your other bills, there is no grace period allowed for paying auto insurance premiums. By just being a day late with your premium payment, your insurance company may decide to cancel your policy. It may not seem fair, but as how you would normally hear, that’s how it goes. And when you’re ready to pay the bill, the company won’t necessarily reinstate your policy once it is canceled. You may find yourself paying more money for a comparable policy, or worse, you may have trouble finding new insurance.
Each state has rules regarding when an insurance company may drop your policy. So, I would suggest contacting your Aurora, IL insurance agent to know exactly the terms of your policy when it comes to late payments. If you fail to make the payment on time, an insurance company will almost always be able to cancel your policy in the middle of its term, on non renew your policy once it up. Paying on-time means that your premium must be received by the due date so dropping the payment in the mail by the due date may still mean that your payment will not be received on the due date.
If you’re a few days late, most auto insurers value your business and won’t drop you. But being habitually late is a different thing. Some companies may seize that opportunity to kick you off their rolls or if they decide that you’re a risk they no longer wish to insure. Your insurer may require that you pay the remaining balance due for the full term if you’ve already passed the cancellation date before they reinstate your insurance.
Tags: auto insurance, automobile, Car Insurance Company
July 25th, 2008
Reader’s Question:
I would like to know if the Department of Motor Vehicle here in Illinois verify insurance coverage for a simple traffic speeding ticket, if you have a valid insurance card that you provided to the officer?
Jim
Chicago, IL
State’s Department of Motor Vehicles (DMV) differ in how they verify insurance after a moving violation. It is essential to be properly insured though so that you are not caught driving without auto insurance. If you showed a law enforcement officer an apparently valid insurance card the DMV in Illinois could still ultimately find out that you are uninsured.
In most states an insurance carrier has to notify the DMV if a individual’s insurance policy is lapsed, canceled, or is not valid. When this happens many states require you to turn in your license plates and if the insurance has not started up again or renewed your driver’s license will be suspended or revoked.
July 12th, 2008
Reader’s Question:
I am trying to get car insurance, I guess my question is, is it possible to get car insurance if I only have a learner’s permit in Illinois?
Bill
Chicago, IL
Yes, it is possible to obtain a auto insurance policy with a learner’s permit with certain insurers in Chicago Illinois.
You will either need an drivers license or be able to get one within 30-45 days typically. Depending on how old you are, the insurance providers will probably make you obtain a regular driver’s license within 30 days of your policy’s inception date. In addition to that, if you only have a learner’s permit, the insurance provider may require you take out the policy with a motorist on it who has a regular operator’s license.
If your parents already have an insurance policy, you may check if you can be added to their insurance policy for coverage.
July 12th, 2008
Reader’s Question:
My son no longer is a household member. He has moved out in Arizona and has changed his address. She does not own a vehicle. I no longer want to continue having him listed as a primary motorist on my car in Illinois but want him to be covered if he occasionally uses the car. My insurance agent informed me I had to have him as “primary” on one of my cars since I have more than one car. Is this true? Why cant he be listed as just an occasional driver?
Marlen
Chicago, IL
Ultimately, it’s up to your insurance provider in Illinois as to whether your son has to be listed on your policy as a driver or not. With that being said, some insurance providers will permit you to remove your son from your insurance policy with proof he does not live in your household or proof he has his own insurance policy. That being said, most carriers permit coverage for “occasional” drivers provided that the “occasional” motorist does not live your household, and your cars are parked at your residence at the end of the day. You may want your son to look into a “non-owner” policy that will help cover him for cars not provided to him on a regular or frequent basis.
July 6th, 2008