True or False: Car Accident Edition
March 12, 2014
1. An insurance company can cancel my policy for any reason it chooses.
2. My car was totaled in an accident that wasn’t my fault. The other driver’s insurance company offered less than what I owe on my auto loan. If I accept, I am still in debt for the balance of the loan.
3. I was injured in an auto accident and the at-fault driver’s insurance company wants to take a recorded statement from me and access all my medical records. I should let them do this.
After a policy has been issued, it can only be canceled for reasons specifically stated in the policy and state law limits what those reasons can be. However, with very limited exceptions, an insurance company may decide to simply not renew a policy.
The insurance company is only obligated to pay the fair market value of your car. The amount of your auto loan is not a factor in determining what the insurance company must pay.
While the other driver’s insurance company may express concern for your condition and be very nice, this is just a means of getting information that they can use against you if necessary.