Arizona state

While most motorists in The Grand Canyon State are aware that they are required carry automobile coverage in order to operate a vehicle legally, many are unaware of important details regarding their policy and the rights of the insurers as well as their own. In addition, there are many factors that companies take into consideration when receiving an application which may determine rates and whether an individual is eligible to be covered by a particular company.

Two big factors that consumers should be aware of that affect their eligibility for coverage are credit reporting and loss history. The Arizona car insurance companies are allowed by the state to use an individual’s credit report in order to determine rates and eligibility. Some insurers have statistics that show a correlation between a person’s prior credit-related behavior to the risk that they pose to insure them and chances that they will file a claim. An individual’s loss history is used by insurers to protect themselves from motorists who have had a number of losses in the past. These drivers are viewed as riskier to insure, therefore they may be charged higher rates or denied coverage.

Additional Information About AZ Auto Insurance

Motorists should take the time to know their rights as motorists and under what conditions insurers can charge higher premiums, cancel or not renew a policy. One such item is being involved in a non-chargeable accident. State law does not allow providers to increase the premiums of a policyholder if they were not at fault in a traffic collision. In addition, consumers should be aware that insurers have what is known as an Automobile Sixty-Day Discovery Period. This basically means that a policyholder’s car insurance carrier can cancel a new policy within the first 60 days of inception for any reason except for an individual’s location of residence, age, race, color, religion, gender, national origin or ancestry.

Once a policy has been in effect for over 60 days there are specific reasons which will permit an insurer to cancel coverage or renewal. Such items include but are not limited to; non-payment, obtaining a policy through fraudulent misrepresentation or the Director of Insurance determines that the continuation of the policy will put the provider in violation of the law or would effect the carrier’s solvency. There are a few other reasons that may allow carriers to cancel or not renew a policy as well as exclusions that consumers should be aware of. By visiting the state’s website, individuals can view the Personal Automobile Insurance Consumer Awareness Points provided by the state for more detailed information.