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Car Insurance For New Drivers

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Being a young and new driver has its drawbacks if you want to take out car insurance

Being a young and new driver has its drawbacks if you want to take out car insurance. Find out in this article how insurance companies treat young people …

You have passed the driving test!

My congratulations, for it!

The next thing will be to take the first car that they leave you to start driving on those roads. But first, you must pay attention to two things: put the L that identifies that the vehicle is driven by a novice and confirm that the car has signed and in force the mandatory circulation insurance.

It is about civil liability insurance that covers personal and material damage that you may cause to a third party. The coverage it provides is regulated by law and by the conditions agreed in the contract. And among those conditions are those that affect the driver of the vehicle.

Those of us who are dedicated to this, know that young people and novices are more likely to suffer an accident. It is statistically proven that those over 65 have 4 times fewer accidents than young people who have not yet reached the age of 25.

And insurers are based on data like this to establish the price of insurance. But they also look at other things that you can discover in five facts that insurers look at before hiring car insurance.

I guess you have discovered that this post is about car insurance for a new driver. In it, you will discover what conditions insurers put in order to underwrite the insurance.

What circumstances do insurers consider in car insurance for a new driver?

Insurers establish the price of insurance based on historical loss data, segmenting them according to different risk groups. In the case of car insurance, the two fundamental variables that are taken into account are the circumstances of the driver and the vehicle to be insured.

To determine the risk group to which you belong as a driver, the insurer will ask you for two fundamental information, the date of birth and the date of obtaining the driving license.

What do insurers understand as a minor driver?

When we talk about car insurance, young people are the risk group most at risk of having an accident.

But at what age are you still considered young?

Well, until a few years ago each insurer had its own criteria. Today, most consider that they are young, those whose age is between 18 and 25 years. All the people that make up this group are considered young and will be penalized in the price of the insurance.

Despite this, the market is large and when it comes to hiring car insurance for a new driver, the range of products and prices is very varied.

The experience is not in age.

At the beginning of the post, I told you that young people have 4 times more accidents than people over 65 years old. There are two qualities, among others, that influence this to be so: prudence and experience.

The first is linked to age. The most impulsive young people are more exposed to recklessness than, together with the lack of experience behind the wheel, increases the probability of having a traffic accident.

It is assumed from a driver that the longer it has been since he obtained the driver’s license, the more experience he has acquired at the wheel. And although this is not always the case in practice, for insurers it is essential.

So if you are a young driver, less than 25 years old and new, less than two years old on the license, get ready, because the welcome reception, with which the insurers will receive you, will not be cheap.

The choice of car, another determining factor.

Although the age and age of the license are very important when hiring your insurance, the type of car can be decisive.

In all these years, dedicated to insurance, I have come across real nonsense, some with disastrous results. Young kids, with a fresh license, driving cars with more than 180 HP of power with just over 1,200 kg of weight.

If you want to pay a reasonable price for your car insurance, you have to seriously think about which model you are going to buy. The truth is that having a car with more power, more exclusive, faster, will make the price of insurance higher. Most insurers penalize for the power of the car, and more if you are new and young.

The union of these three circumstances can be a serious blow to your pocket.

Depending on your circumstances, the surcharges can range from 20% in the best of cases, to exceed 130% of the price that a driver over 30 years of age would pay for the same insurance.

Two tricks with consequences: not appearing on the policy or doing it as an occasional driver.

There are formulas to reduce the price that young novice drivers have to pay, but I do not recommend that you use them.

One of the most frequently used tricks is, for example, that of the kid who takes out his driver’s license and buys a car, but it is nowhere to be found in the insurance. He does not do it as a taker, nor as a driver. In this case, it is the father or mother who becomes the regular driver of the car. This means that the price of insurance does not become more expensive, but at the same time you are going to take some risks that we will see later.

The other trick used is to include the novice driver as an occasional driver, despite being the regular driver of the car. Most insurers penalize this situation, applying certain surcharges when you modify the car insurance for new drivers.

It is clear that the cost will be lower than if it were the usual driver, but you are not going to get rid of some of the consequences of falsifying the driver’s circumstances.

What are the consequences of not being listed in the insurance as a regular driver?

In insurance, most of the time, the consequences are noticed when the insured risk occurs. That is when the loss occurs.

The most convenient thing is, if you are the usual driver of the car, to appear as such, even if you are young and fledgling. It is about avoiding compromised situations that can put personal or family assets at risk.

Without history, there are no bonuses.

Having a good insurance record pays off. But to have it, the first thing is to appear on the insurance policy.

When you let the insurance holder be a veteran driver, generally the father or the mother, two things can happen: if you are a good driver you will make the holder the one who benefits from the bonuses and the best prices on insurance. With your history, you will be able to change insurers and obtain better conditions in the contract. On the contrary, in the event of an accident, your driving record will be penalized, having to pay more for insurance.

Whatever the case, with your attitude there is always someone who gets hurt.

The regular driver is the main beneficiary of the coverage contracted in the policy, provided that he meets the stipulated conditions and that the information provided to the company is true.

Lack of coverage in the event of an accident.

One of the conditions imposed to enter into an insurance contract is the accuracy of the data on the insured risk. In-car insurance, knowing who will be the driver is essential to determine the conditions that will govern the contract.

The consequences of having a traffic accident can range from causing a small dent to causing very serious injuries to people.

When the driver does not match the one declared in the policy and it is a young or new driver, the insurer may refuse you the consequences of the accident. In the worst case, if it is interpreted that there has been fraud or bad faith when hiding the information about the driver, it could invalidate the policy.

Conclusion

If you are young and new, but you are going to drive daily or very frequently, there is no excuse, you must appear as the insurance holder and regular driver of the car. Only in the case that you are going to make sporadic use of the car, is when you should appear as an occasional driver. And although the insurers will not take into account the time of experience as an occasional driver, you will be able to enjoy the insurance coverage.

The downside of new driver car insurance is the price you have to pay for it. But if you do it right from the beginning and you are a good driver, as you accumulate years of seniority with the license or you become years of age, the price will be reduced. You will also avoid falling into situations like these:

  • Lack of driving history because you have not been listed in any insurance.
  • Benefit or penalize a third party because he is the one who appears as the insurance holder.
  • Lack of certain coverage or even insurance in the event of an accident, if the insurer considers that there was bad faith when signing the contract.

Ah! I forget to tell you that, if no insurer wants you, there is the Insurance Compensation Consortium where you can take out car insurance for new drivers.

We want to hear from you. What did you do when you took out your car insurance as a new driver, was it worth it?

The definitive guide not to lose your mind if you have to make an insurance claim

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insurance claim

you want to make an insurance claim. And you want your complaint to be solved as soon as possible. You also don’t want to spend a lot of money.

As an insurance consumer, you have the right to complain if something has not gone well or to complain about deficiencies in the service.

Choosing the most appropriate route for an insurance claim, start by reading this guide so as not to lose patience.

Where can I complain and how can I complain?

In my case, most of the time, I advise giving priority to the extrajudicial route before the judicial one. I have always thought that insurance can solve many issues in a negotiated way.

To go to court, you have time.

There are different ways to make your claim, and so that you do not get confused, I bring you this little guide.

The freeways to claim insurance.

If you do not agree with the resolution given by the insurer to a certain matter, you can exercise your right to claim. You have two ways to do it, the judicial one, with an uncertain result, and at a cost to your pocket.

And the extrajudicial claim, with which you can obtain the same result, but cheaper. Free!

As a preliminary step to claiming your insurer, I recommend that you read the policy and everything related to conflict resolution measures. There you will find the different instances that you can go to.

In case you do not have the policy at hand, I leave you these brief notes about the tour of the different services. It will help you.

Step # 1: Customer Service.

Each entity names it in one way: customer service, claims. It is the administrative unit that is in charge of receiving and resolving the complaints or claims that come to them.

Once you have submitted the claim, the service has to respond within two months. Before resolving, the department affected by the complaint or claim will ask for the background, information, and allegations.

The decision of the attention service must be motivated, the conclusions will be clear and they must notify you within 10 days after taking it.

If the answer leaves you satisfied, you can now abandon reading the article. If not, and your company has it, this is the second step.

Step # 2: The Defender of the insured.

Has the insurance company’s response not convinced you? Well, I present to you the Defender of the Insured.

It is a figure that all insurers are obliged to have, in case they do not have the service of the previous step, that all pay and of which they must be independent. Its decisions are binding on the company, but not on the claimant. If he agrees with you, the company will have to address your complaint or claim in the terms established by the Ombudsman.

The operation is similar to customer service. The response time is also for two months. If the decision does not satisfy you or you have not had a response, the next step is to go to the supervisory body of the administration. In insurance, the General Directorate of Insurance and Pension Funds.

Step # 3: The General Directorate of Insurance.

Your insurance claim can be made through any of the claims offices of the different supervisory bodies: The Bank of Spain, the National Securities Market Commission, and the General Directorate of Insurance, the latter being the one who will resolve your complaint.

Once the claim file is opened, before ten days, it will request the insurer to present any allegations it deems appropriate within fifteen business days. Their answer will be transferred to you so that in the same period you can show your disagreement with it. After this, the report will be issued within four months of the complaint.

The report, like the previous ones, will be motivated and clear in its conclusions and will state whether the actions comply with the rules of transparency and protection or with good financial practices.

But it will not deal with complaints or claims when the user is obliged to go to an arbitration body or when the matter is submitted to any administrative or judicial instance.

One piece of information: In 2014, the resolutions in favor of the claimant were 25% of the total. In favor of the insurer, 39%.

Ah! Two very important things:

  1. Before going to the DGSFP with your insurance claim, you have to prove that you have claimed through the Claims Attention Service or the Insured Ombudsman.
  2. The report you issue is not binding on you or the insurer.

Yes, yes, I know … then what is it for? This time I let you answer.

You are impatient and prefer shortcuts, so you can jump from the starting square to the next point.

The alternative of the arbitration system.

You have other alternatives that you can go to without having to take the previous steps. It is a specific system for consumers and users where conflicts can be resolved through mediation and arbitration. There are two types, the so-called ordinary arbitration, and the consumer.

Ordinary arbitration

Its operation is simple, in case of disagreement between the parties, both will choose an arbitrator who will be the one to decide and resolve the conflict. Its resolution is binding on both parties.

Consumer arbitration

It is under the umbrella of the Administration. It is a voluntary means for the resolution of conflicts where if the insurer is attached, it will submit to arbitration of the claim and if it is not, it can accept it as a solution.

Either of these options will make your insurance claim go less, but will not always reduce the time to resolution.

Conclusion

When you don’t like the insurance decision, you have a number of alternatives at your fingertips before going to court.

But you have to earn it and it is not always an easy task. At each instance you go you will have to do it with arguments, and for that, this is the place to find them.

If your plan is to claim insurance, you will need an extra reserve of patience and a pinch of optimism.

In summary … I have given you the alternatives so that you can make your insurance claim, without costing you one euro.

Did you know about the existence of these services? Have you had to use any?

How long does insurance company have to pay a claim?

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One of the most frequent complaints is that insurers do not pay or pay late

One of the most frequent complaints is that insurers do not pay or pay late. Do you know how long the insurance has to pay a claim? The key is to know what they are …

Nine, eight, seven, six … The countdown has begun. In a few days, the deadline to collect the compensation is met. Or not? Because you know how long the insurance has to pay a claim.

One of the most frequent complaints is that insurers do not pay or pay late.

And the question is if they have to pay when do they have to? The answer should be obvious: as soon as possible, immediately.

But the thing is not so simple and one of the keys is to know what the obligations of each of the parties are. So in this article, I am going to explain what you have to do so that the insurer pays you since it is exposed if it does not do it within the established deadlines.

Without further ado, let’s go for it!

What is the insurance business?

An insurer is a financial entity, with the capacity and duly authorized to carry out the insurance activity. This includes assuming the obligation to pay an amount of money, or provide a service when the event occurs whose risk is covered, and all this in exchange for receiving the amount of the premium established as the insurance price.

The insurance contract (the policy) is the financial instrument in which the insurer sets out its commitment to pay in the event of the loss. This can give you an idea that it is an adhesion contract, where it is the insurer who establishes its conditions. Conditions regulated in Law 50/80 of the Insurance Contract, whose precepts are imperative.

You suffer a car accident and your insurer will provide you with the necessary assistance, assess the damage to the vehicle, and will compensate you or repair it, if applicable. So far everything seems very simple, the problem arises when we ask ourselves how long does it take to resolve the claim?

How long does insurance have to pay a claim?

The truth is that current legislation does not leave the answer to this question to chance. If things go well, you should have no problem receiving insurance benefits or collecting compensation. But if things go wrong, knowing what the deadlines are is a guarantee that the rules are met and that your rights as an insured are respected.

However, it will depend on the type of insurance that is affected by the loss so that the terms vary. Thus, for example, it is not the same that you are the injured party in a traffic accident as the beneficiary in a life policy. You will see why later.

What are the obligations of the insured towards the insurer?

For the insurer to have to fulfill its part of the contract, two relevant facts must be given:

#1. The policyholder or the insured must be up to date with the payment of the insurance premiums.

If the insurance is recently contracted and you have not paid the premium before the claim, the insurer is released from its payment obligation.

When it comes to the renewal premium, the insurance is suspended one month after its expiration and will only come into force again 24 hours on the day you pay the premium.

#2. The policyholder, the insured or the beneficiary must inform the insurer of the occurrence of the loss.

Notification of the claim must be done within a maximum period of seven from when you became aware of its occurrence unless a longer period has been set in the policy. If you are late and the deadline is passed, the insurer could claim the damages that this delay may have caused.

In addition to informing the insurer, the policyholder, or the insured, you must provide all the information on the causes and consequences of the loss. But it is that the law also transfers to the insured the obligation to prove the existence of the damages, the salvaged objects and the pre-existing ones at the time of the accident, as well as the valued estimate of the damages and losses.

Failure to comply with the duty of information may mean losing the right to compensation or the provision of the service.

How long do I have to claim insurance for a claim?

The usual thing is that we take time to declare the claim beyond the 7 days established by the norm, therefore you should know.

After these deadlines, the actions derived from the fact are considered to have been prescribed.

When the claim is related to a matter of civil liability and the claim is made against the insurer of the deceased, the period is one year to claim. After this time, the claim would be prescribed.

The insurance obligation for the payment of the benefit.

Once the insurer has knowledge of the loss, either by the declaration of the policyholder, the insured, beneficiary, or by any other means, the period established to resolve it begins.

However, each claim may have a different response time depending on the type of insurance contract affected by the claim.

Let’s see what the law establishes in each case.

In traffic accidents.

When we talk about the consequences of a traffic accident, we have to distinguish between damage caused to a third party, personal or material, and those caused to our vehicle.

As established in article 7 of RDL 8/2004, which approves the revised text of the Law on civil liability and insurance in the circulation of motor vehicles, the term begins at the moment that the injured party or his heirs claim the insurance company compensation for damages caused by your insured.

From this previous claim, the insurer has a period of three months to present a motivating offer of compensation if it understands that the responsibility has been proven and the damage is quantified. If the claim is rejected, you must give a reasoned response stating the reasons that prevent you from making an offer of compensation.

In this article, you will find all the information you need about the previous claim.

In all other insurance.

Before I told you that you had to distinguish the consequences in the traffic accident and I spoke to you about the damage caused to the vehicle. In this sense, as in any benefit derived from home, business, industry, accident, or life insurance, the insurer has a period of 40 days, from the moment it became aware of the accident, to pay the minimum amount of what it may owe according to known circumstances.

It goes without saying that if we do not inform the insurance company of the incident, we will hardly be able to claim payment within the previous period.

But there is more, in damage insurance, once the claim is declared, within five days the policyholder or the insured must notify the insurer in writing of the list of existing objects, those saved, and the estimate of the damage. But what is more, it is up to the insured to prove the pre-existence of the objects.

Based on this, you should adopt an active attitude, providing all the information to the insurer. About this, I recommend you read the content of this post. Do I have to wait for the insurance expert to come before I repair the damage from a claim?

When must the insurer pay default interest?

So far we have seen the terms that the insurer has to compensate and how it should do it. Failure to comply with this obligation is penalized as regulated in article 20 of the LCS.

The compensation incurred by the insurer for the delay will consist of the payment of an annual interest equal to the legal interest of the money in force at any given time, increased by 50%. After two years from the date of the claim, the interest may not be less than 20% per year.

This interest is considered to be produced by days and for its computation, the date of the claim will be taken as the start date and the time when the corresponding compensation is paid as the end. However, other dates may be given as determined by the judicial body that automatically files the default with the insurer.

The default of the insurer takes effect, in general, concerning the policyholder and the insured and, with a particular character, with respect to the injured party in the civil liability insurance and the beneficiary in the life insurance.

Insurance industry: career for those who like to deal with risks

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Insurance industry: career for those who like to deal with risks

Understand how the insurance industry works and the challenge of protecting your customers from unpredictable events by turning this into a profitable activity

The insurance market constitutes a multi-million dollar industry worldwide, made up of companies and people who develop insurance policies and work in the sale, administration, and regulation of these services.

Today, there are very few items of value that cannot be insured, although the most common types of insurance involve business, vehicles, real estate, rent, and health problems.

What is behind the success of this industry is the risk management activity. This is because insurance is nothing more than a risk transfer service, in which the insurance company protects people and companies against the risk of unpredictable events occurring and which would represent great financial losses for them.

To offer this guarantee, the company receives a fee from all its customers, charged from time to time. In industry jargon, this fee is called a ‘premium’, while the customer is treated as a ‘policyholder’ (the document that formalizes the contract between the insurer and insured). If the event specified in the policy occurs, the customer receives compensation from the insurer.

To be successful, the insurer must make sure that it has earned enough money from the premiums to offset the expenses it will have to reimburse customers for damages and losses while maintaining a profit. It may seem like a simple procedure, but it is an extremely sophisticated analysis and calculation mechanism.

Calculation of risks The final account only closes when the risk that each individual or company represents is calculated with great precision. A banal example: wooden houses, for example, have a greater risk of fire than those made of bricks, in the same way, that a customer’s history of fines says a lot about the chances of him getting involved in an automobile accident.

This process of analyzing whether the risk is worth it or not is called underwriting and is one of the most crucial activities within an insurance company. This is an in-depth study, which takes into account several factors to try to establish what are the chances of this client needing to call the insurance company to reimburse losses in a certain type of insurance.

It is the analysis made by the underwriting team that will determine whether or not the insurance company will close the contract, and under what price plan. The lower the risk, the lower the premium.

If the risks are poorly calculated, the value of the premiums will not be sufficient to cover the company’s expenses. In other words, if underwriters (also called underwriters) assume that the probability of an event happening is very low, the fee charged to each customer will also below. If the event, contrary to what was predicted, occurs for many customers, the insurer comes out at a loss.

Crisis situations: scenario that took insurers by surprise occurred during the 2008 financial crisis. The American International Group (AIG), the largest insurance company in the United States, recorded a loss of more than $ 99 billion in the year and needed financial support from the Federal Reserve (FED – kind of central bank of the United States) to not go bankrupt.

To understand what happened, an initial explanation is worth: AIG’s main business is selling insurance, but not just the more traditional types, such as real estate or health insurance. The company also provides more complex services to meet the demand for large companies, especially banks.

To protect their large operations, banks often hire insurance companies to help them in case their business goes wrong, and they pay a high price for it. In this way, AIG insures financial institutions worldwide against risks.

Virtually no insurance company was able to predict the risks behind subprime real estate loans, a type of loan practiced by several banks that were AIG customers. When this type of credit triggered the financial crisis, the banks lost a lot of money and started to activate the contracts they had signed with AIG, forcing the insurance company to pay huge refunds. The account, in this case, clearly did not close, leading the company to a state of technical bankruptcy that was only overcome through government aid through the FED.

Industry workers, It’s not just underwriters who deal with risk management within an insurance company. In the company, professionals are known as actuaries also play an important role in this activity.

It is up to them to look at the latest trends and statistics for a specific occurrence (be it fire, theft, death, car accidents, etc.) and use this information to build probability and risk prediction tables. These professionals, who constantly calculate risks, are involved in several processes in the insurance company, including the subscription itself, but also the definition of pricing policies, product development, investments, and customer claims.

Professionals in the actuarial field must appreciate solving problems through data analysis and modeling and are often motivated by working with computers and formulas.

The truth is that, in an industry built around the idea of ​​risk, all professionals must have an affinity with this theme. From executives in managerial positions, such as directors and presidents, to the other end of the organization chart, where sales agents are located – the objective, in the latter case, is to sell insurance policies, and these professionals must know how to assess risk associated with each customer and recommend a product that adapts to their needs, while at the same time not making the insurer take unnecessary risks.

How to buy life insurance: 5 things to keep in mind

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buy life insurance

On more than one occasion, you will have kept awake worried about how your family will live if something happens to you. Do not look for the remedy in the pharmacy, although you can also find it, better look for it in good life insurance.

What if I have an accident that prevents me from going back to work?

What if I am unemployed and cannot find a job at my age?

How much will I have left when I retire, will I be able to live with the pension?

Living quietly can be cheaper than you think. You just have to keep these 5 things in mind before taking out good life insurance.

#1. Why do I want to take out life insurance?

The first thing you have to evaluate before purchasing life insurance is what you want it for, what are the coverages you need. To give you a quick idea there are 3 groups of life insurance.

1.1 Life risk insurance

It groups together all the modalities in which death is the trigger for the insurance benefit, paying capital to the beneficiaries of the insured.

1.2 Life insurance savings

Its purpose, as you can imagine, is to accumulate capital that we will be able to make effects on the contract termination date. An example: at the time of retirement or when your daughter starts college.

1.3 Mixed life insurance

It combines the two previous modalities: in the event of death before the end of the contract, the beneficiaries will collect the agreed capital. In case of survival, it is the insured himself who will collect the accumulated capital of the savings.

#2. A personal audit, what resources do I have?

Income, expenses, future commitments, equity, four concepts that you must analyze.

You have to start by calculating what your family expenses are and what income you have, not only now, you should make a future projection, no one better than you to evaluate the possibilities you have.

You must think about the commitments made and their extension over time, loans, or mortgages that you will have to continue paying. But also with the patrimony that you can leave and the returns that it can generate.

The result of that small personal audit will help you to know what capital you should insure.

#3. How healthy am I?

You should not only take into account the purely economic aspects but also personal, health.

I’m like a kid, made a bull!

Be careful not to confuse wishes with reality, it will depend on the insurance you choose that you have to pass a medical examination.

The higher the insured capital, the greater the chances of this happening. If you do not have to carry out the medical examination, you will have to fill out a declaration of health status, in which I advise you not to hide any information.

Age, health status, or profession determine the premiums you will have to pay for life insurance as they define the risk assumed by the insurer.

#4. A personalized insurance for my needs

The moment of truth has arrived, choosing the product that best suits what you are looking for. The offer in the insurance market is very wide so you have a lot to choose from.

Don’t be dazzled by advertising, because it’s just marketing. You must be very clear about what the product offers you, the different forms of compensation it has, its limitations, or if you can customize it by adding or removing coverage.

#5. Costs and taxation

You only have to read the conditions of the contract. Clarify all the doubts you have. Pay special attention that the personal data is correct, that the dates linked to the contract are correct or that the beneficiaries are those you have designated, and above all, the insurance costs.

Premiums in risk life insurance tend to increase year by year depending on age, the same can happen to you in savings life insurance if you have chosen to increase the annual fee in percentage terms, so you have to think that in the future your economy will have to bear this increase.

You should also think about taxation, because there are several forms of taxation that you can find at the time of receiving the savings, depending on the type of life insurance you have contracted.

Conclusion

As you can see, sleeping peacefully doesn’t cost that much if you can afford it. It is only a matter of investing a little time in choosing the best life insurance and allocating the money necessary to ensure a better retirement or guarantee your assets in your absence.

Now it’s your turn, that’s why I’ll leave you this question and I’ll wait for you in the comments where we can discuss your answer

What life insurance do you have contracted or which do you think you need?

Serious illness insurance: Why you should buy one as an extra protection measure?

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Serious illness insurance

Unforeseen events happen at any time. Because of this, it is important to have serious illness insurance to be financially prepared.

Unforeseen events can happen to anyone, at any time – especially concerning health problems. Because of this, it is important to have serious illness insurance to be financially prepared in case you face any of them.

This modality has even won more and more fans.

What does serious illness insurance cover?

This coverage is not a basic item in insurance, but additional protection.

To be entitled to benefit from the indemnity, you must be diagnosed with a serious illness after the grace period of the plan.

See below which situations are part of the policy.

Cancer

Several different types of cancer are covered by this insurance modality, such as leukemia and malignant diseases in the lymphatic system.

On the other hand, there are some exceptions in non-invasive diagnoses, among them tumors described as premalignant, prostate cancer in primary stages, malignant melanoma with a low degree of tissue invasion, and malignant tumor in the presence of any human immunodeficiency virus.

Stroke

Also known as a stroke, this is another type of disease covered by disease insurance.

It is worth mentioning, however, that the neurological symptoms cannot have been caused by migraines or the hemorrhage caused by accidents, brain tumors, obstruction of the ophthalmic artery, or brain surgery.

Acute myocardial infarction

If you suffer a heart attack, you will be entitled to receive the insurance claim.

Only in the diagnoses of angina pectoris (caused by the low supply of oxygen and nutrients to the muscle), decubitus angina (usually considered as a heart failure process), and other acute coronary syndromes that this benefit is not granted.

Bypass surgery

This is a procedure used in bariatric surgery, in which gastric stapling is performed to restrict food intake.

It is covered by insurance, as long as it is not caused by surgery with closed-trunk surgical catheters, angioplasty, and other intra-arterial procedures or non-surgical techniques.

Other diseases

The insurance also guarantees the payment of compensation in other serious cases, such as:

  • Alzheimer’s disease ;
  • limb paralysis;
  • organ transplant (heart, marrow, liver, kidneys, pancreas or lung);
  • partial or temporary disability;
  • special anticipation for incurable disease;
  • personal accidents and medical, hospital, and dental expenses.

Why you should buy serious illness insurance?

This is the first type of insurance you can count on to help pay for treatments, transportation, and medications that not even health plans cover.

It is interesting because it has a low monthly fee and guarantees financial protection in several complicated situations.

Why worry about unforeseen events if you can prevent them? Take a good look at the coverage offered by serious illness insurance and choose your policy.

The insurer has canceled my car insurance, what can I do?

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The insurer is obliged to notify the cancellation of the insurance in advance.

The insurer is obliged to notify the cancellation of the insurance in advance. Depending on the reason, the time to do so may be shorter, knowing these details and using them to your advantage is what you will find …

In this post, I am going to explain what you can do if the insurer has canceled your car insurance and what reasons it has had to do so. These same arguments, by analogy, are valid for other types of insurance.

A few days ago a friend told me that he had received two traffic fines, both imposed using one of the new DGT radars. One did not surprise him at all, he had gone a few kilometers over the speed limit. The other yes, they sanctioned him for lacking mandatory circulation insurance. The insurance company had canceled it at maturity and they had not told him.

Insurers look for a specific client profile and periodically check their insurance portfolio, debugging the contracted risks. So discovering that your car or house insurance has been canceled is a situation that occurs more and more frequently.

So that you have no doubts, in this post we are going to answer three specific arguments:

  • The insurer can cancel the insurance contract whenever and however it wants.
  • What are the reasons why you cancel the insurance?
  • What can the consumer do in this situation?

Without further ado, the good starts here.

The insurer has canceled my car insurance without notifying me beforehand. Is it legal?

In the insurance contract, like other contracts, a series of conditions are established that are binding on the parties who sign it. In this case, the insurer and the insured are obliged to inform the other party of those circumstances that occur after its formalization and that may modify the terms thereof. Also, those related to the duration of the insurance.

But in addition, this information must meet a formal requirement, you cannot do it in any way, you must communicate it in writing. It will expressly contain the decision of the insurer to oppose the extension of the contract, clearly indicating the date on which the termination or cancellation occurs, having to reliably certify receipt by the insured. If necessary, the insurance company will be the one obliged to prove that it communicated the cancellation in a timely manner.

Can the insurer terminate the insurance contract at any time?

There is another requirement that the insurer must meet when it decides that it is not interesting as a customer or does not want to continue insuring that specific risk. This requirement is temporary, the communication must be made within the legally established deadlines. Failure to comply with these deadlines renders the communication of opposition to the extension of the insurance ineffective.

But the insurer, not only, must comply with the formal requirement in the communication and the time to do it, but the Insurance Contract Law establishes the conditions under which you can cancel the insurance of the car, home, or your pet. The reasons are diverse, so we are going to see what are the most frequent causes.

What are the most frequent causes of cancellation of the policy by the company?

In the same way that the insured when he wants to cancel the contract, he does not have to explain to the company why he does it, it does not have to do it either. This is provided for in article 22 of the Insurance Contract Law.

When this article is invoked, you should know that the insurer must notify the cancellation insurance at least two months before the renewal date.

A period of two months is also established for the insurer to notify the policyholder of any modification in the contract.

But there are other deadlines that you are interested in knowing.

Non-payment of the premium, the most frequent cause for car insurance to be canceled.

Most of the time, due to ignorance, carelessness, or misinformation, we think that returning the receipt, when they pass it on to us, is enough to cancel the insurance. And it is not like that, because from that moment on, you leave the decision to the company.

The law says that in case of non-payment of any of the successive premiums, the insurance coverage is suspended one month after the expiration date. And the insurer has six months to claim the insurance payment, if it does not, the contract is automatically terminated.

Some insurers report the suspension of insurance while claiming payment. Others after 30 days cancel the insurance without further ado, leaving you without options to start the contract again, paying the corresponding premium.

The insured risk does not correspond to reality.

Sometimes it happens that, from when we take out the insurance until the event whose risk we insure occurs, a certain time elapses and the characteristics have changed. In these cases, when the insurer knows it, it can terminate the contract if the risk no longer interests it. To do this, you must notify the policyholder of your decision within a month of becoming aware of the increased risk.

However, this is not always the case, in many cases, it is the policyholder who informs the insurer of a change in the circumstances of the insured risk. In this case, the company has two months to propose new insurance conditions. The policyholder has fifteen days to accept or reject it. If it is rejected or there is no response, the insurer may terminate the contract after warning the policyholder, giving him fifteen days to respond, after which and within the following eight days it will communicate the termination of the contract.

When any of these reasons concur with the termination of the contract by the insurer, the policyholder is obliged to return the part of the premium not consumed.

Trying to deceive the company does not go unnoticed.

Insurance is an adhesion contract and before signing it you will have to answer the questions that the insurer submits to you. As a policyholder, you have the duty to inform about the circumstances that will influence the assessment of the risk you intend to insure. These data form the basis for determining the price you will have to pay for the insurance.

Well, the insurer may terminate the contract, through a statement addressed to the policyholder, within one month of becoming aware of the inaccuracy or reservations in the information. In this case, contrary to what happens in the previous point, the unconsumed premium will remain in favor of the insurer, unless it has acted with intent or gross negligence.

But there is also a consequence that can be detrimental, and that is the loss of compensation. If the loss occurs and the insurer has not notified the policyholder of the termination of the contract, the compensation will be reduced in the proportion between the agreed premium and the one that would have corresponded if the true entity of the risk had been known.

Not only does deception occur when subscribing to the insurance, so that the insurer assumes the risk or comes out cheaper, but also when falsifying the occurrence of a claim or its consequences. In this case, in addition to terminating your contract, the insurer may find you with a criminal complaint, with serious consequences for you.

The frequency of claims, a reason to cancel the contract.

As I have already told you on more than one occasion, insurance companies are not NGOs, they are companies whose objectives include making money.

The companies must meet a series of solvency requirements that allow them to meet the obligations of the underwritten risks. To avoid deviations, they closely mark the global and individual results of each insurance. Therefore, it is not surprising that they periodically clean up and terminate those deficit insurance contracts. It depends on each insurer, but having a couple of claims during the annuity can be a reason for cancellation. Some only assess the cost of claims and others remix both data.

In any case, if the insurer decides to cancel the contract, it must notify it at least two months before expiration, except in the case of any of the circumstances analyzed in the previous points.

These are some of the facts that motivate you to find that the insurer has canceled the contract, but there are others, such as the sale of the car or the home.

Conclusion

We have seen how you can find that the insurer has canceled the insurance, by unilateral decision or forced by your action as the policyholder.

If the cancellation is unilateral, for it to be valid and effective, it must be communicated in writing, reliably, and expressly indicating the reasons for the decision. Depending on these reasons, the minimum period to communicate the cancellation will be:

⇒ Two months: When the decision is not to extend the contract beyond the expiration date.

⇒ One month: If the termination of the contract is prior to expiration. In this case, the normal thing is that the insurer is obliged to return the unconsumed premium.

As you can see, the company can also cancel the contract whenever it wants, but like you, subject to certain rules. From now on, you know how you can act to your benefit if certain conditions are met.

Have you ever run out of insurance and didn’t know it?

Now it’s up to you, leave us your answer in the comments, we are happy to read your comment.

What is the difference between individual and group life insurance?

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difference between individual and group life insurance

Check the differences between these two products and which one best suits your needs.

The big difference between individual and group life insurance is the level of personalization. In general, group life insurance meets basic needs, common to a group of people, linked together by a bond or common interest.

Individual life insurance is a product adjusted to the needs of each client. This type of insurance is contracted directly by the insured, who receives his policy according to the chosen plan. In order to personalize the product, in general, a complete analysis of the insured is made considering a series of factors such as profession, financial responsibilities to the family, sports practices, and health history, for example.

Individual life insurance offers specific and adjustable protections, according to the style, age, and standard of living of each client. In these cases, depending on the insurance company, it is also possible to opt for complementary coverages such as funeral assistance and receipt of insured rates for periods of hospitalization.

But, after all, how does group life insurance work?

Group life insurance is generally used by companies to ensure the safety of their employees and, thus, demonstrate commitment. Offering this benefit is quite common among companies today. Thus, group life insurance is a product that serves employees and/or business owners.

The number of employees required for hiring varies with insurers. But in general, collective plans are offered, with coverage from three or even two employees and minimum ages, usually between 14 and 60 years old.

As it is not a product with a high level of personalization and, in general, it meets the basic needs of the customer, the values ​​of these insurances are usually lower and cease to exist when the company leaves the company. Therefore, for more specific and long-term protection, it is interesting to seek qualified advice and individual insurance.

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