How To Ensure Insurer’s Adherence To Contract?

The holder of a car insurance policy has made a contract with the insurance company. Therefore, the policyholder must reveal details on the damages that have resulted from any accident. In addition, all policyholders must let the insurance company know about any significant change.

Some of those changes could affect the policyholder’s contact information

• The policyholder’s address
• The policyholder’s telephone number
• The new name for a policyholder that has married

Those policyholders that have changed their name for other reasons, such as assuming U.S. citizenship, would also need to share that information with the insurance company.

Possible changes to the purchased policy

Increasing or decreasing the distance that the insured vehicle gets driven on an average day

• Adding another name to the list of insured drivers
• Noting that the insured vehicle would now be used for commercial purposes
• Increasing the number of insured vehicles on the purchased policy
• Naming a different person as the principal driver

Changes to the status of any driver

—If any of the insured drivers had had his/her license suspended, then it would be the policyholder’s responsibility to report that fact.
—If a family member with a learner’s permit had earned a license, then the insurance company would want to be made aware of that fact.

Mention of modifications to the insured vehicle, or modifications to any part being used on that same vehicle

What could happen if a policyholder failed to let the insurance company know about any significant change?

That would represent a failure to adhere to the terms of the contract/policy. If the insurer were to discover that a policyholder had not lived up to his/her end of the contract, then the insurer would have a right to deny to the policyholder full coverage of any accident-linked damages.

Imagine what the consequences could be for any policyholders that had not bothered to share the facts, regarding a certain change to some fact that had been included in the policy’s terms. An insured driver might get into an accident, and then suddenly discover that he/she would not be provided with the anticipated coverage for damages.

Insurers have a simple reason for such strict enforcement of the contract’s terms. Personal injury lawyer in Cambridge knows that insurers must protect themselves against the chance that some teen might steal the keys to the car and get into an accident. The parents would be foolish to lie and say that the same teenager had just received his/her license.

The insurer would want to be given proof of that fact. It would be better for the same parents to simply explain what had happened. Their premium might increase, but they would not risk losing the coverage of any accident-linked damages.