What should I know about before I change my insurer?


What is the meaning of non-renewal of the policy and how is it different from cancellation?

Cancellation of policy is the termination of the policy by the policy holder which happens only under certain circumstances.  Otherwise, under normal circumstances the policy is taken for a period of one year and the insurance cover is provided for a period of one year.  After the expiry of that one-year period if the policy holder does not renew the policy then it is considered a ‘non renewal’ of the policy.

What is the NYAIP and can I change my insurer is I am not satisfied?

–          The NYAIP (New York Automobile Insurance Plan) is a plan through which customers are assigned to an insurance company on an involuntary basis.  This is done in cases where the customer cannot find an insurer who is voluntarily willing to offer the customer a policy.  This could be due to a variety of reasons such as those with no driving experience, poor driving habits, or if the insurer feels that he will not be able to sell a policy where the insurer will make a reasonable profit, or due to the frequent claims made by the customer etc.  Under such circumstances the insurer will not be too keen to sell a policy.  This is where the NYAIP will step in and assign an insurer for the customer.

–          The insurer who is assigned by the NYAIP cannot be changed for a period of three years but that does not limit a person from being on the lookout for another insurer in the voluntary market and one could always purchase another insurance policy at any time.  The auto insurance companies in the State of New York have a competitive market and customers are always encouraged to shop around and find the best quotes and obtain a cover that best suits them and at a reasonable price.  Since these insurance rates vary from one insurer to another it helps to shop around and especially if you are in NYAIP and are dissatisfied with the current insurer.  Several agents could be contacted and there are agents who directly market their products to the customers.

In case of an accident how should I file for a claim?

–          You must fill up the claim form after writing to the insurance company from whom you wish to file the claim.  Your own carrier also must be notified about this.