When is an auto insurance policy effective?

Question

I recently switched auto insurance companies and was in an accident about 3 days after the down payment was made. I filed a claim but my policy isn't in the claim center's "system" yet. They gave me a policy number, took the money out of my account, and said everything was good. Is there any possibility that the policy wasn't effective or does it definitely become effective once the down payment was made? I would just like to know for my own peace of mind as I can't contact anybody from the company until Tuesday.

Answer 1

Thew policy is effective once you sign the binder of coverage agreement and pay the premium of first installment.  If you did it on line or over the phone they should have faxed it to you or emailed it to mail back to them.

Answer 2

You insurance police should have become effective immediately after you made the down payment.   They gave you a policy number.  they also should have given you something in writing that shows proof of coverage.

Answer 3

For car insurance the most efficient way to get a good rate is do a policy comparison on auto policies. Make certain that you compare similar policies with the same limits, car model, zip code, etc so that all options are an accurate comparison.



What I usually recommend is an internet comparison quote at http://www.lowratetoday.com since they have discount insurers and can give several prices on auto insurance polices.

Answer 4

When they accept you and you make the first payment, you're covered.