What should you do if your car insurance risk changes?

Mental health is an important issue that you should make sure your insurance takes care of. When hiring an insurance policy, the premium price will be calculated based on certain factors, such as the driver's profile (age, years with a driving license, marital status) or the technical characteristics of the driver. car (make, type of car, age). To find car insurance at very low prices, your car insurance risk.

What influences the price of insurance?

Most likely, your driver profile, or the characteristics of your vehicle, will vary over time. And with this, the risk that your insurance company assumed with your policy will also vary. Either because, for example, a year after you obtained the license you are no longer considered a new driver, or because you have bought a new high-end car. But what if these types of characteristics vary? Will the price to pay for our car insurance also vary? In general, yes, and this type of change can affect the price of your insurance policy.

Thus, it is very important that if any of the factors that companies take into account when calculating your policy premium changes, you let your insurer know as soon as possible. Since the risk varies, and the price to pay for your car insurance will also be modified.

You should know that if the change in any factor increases the price of your premium, the company will make you pay the corresponding amount at the time, while, if, on the contrary, the price of the premium is reduced, your company will will return the corresponding amount in the next payment. In the same way, you must bear in mind that, if any of the factors that determine the price of the premium vary and you do not let your insurer know, the consequences are usually negative.

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Thus, there may be cases in which certain factors change and:

1. The risk assumed by your insurer decreases: as for example, if you previously parked your car on the street and now you have rented a garage space, or if your son has turned 26, and therefore is no longer a young driver - and is no longer considered a driver with a higher risk-, or if you include a state-of-the-art electronic anti-theft system in your vehicle, these are factors that will make the price of your insurance change. In all these cases, the risk that your company assumes when granting you an insurance policy decreases, and therefore, the price of the premium to pay will generally be lower. As we have said before, in these cases, your insurer will pay you the price difference in the next payment term. That is, in general, they will not pay you the proportional part immediately.
2. The risk assumed by your insurer increases: If your son or daughter has recently obtained a driver's license, and you allow him to drive your car from time to time, that is, your son or daughter is the occasional driver of your vehicle. Or if, for example, you have started to use the car during the week, when before you only used it on weekends. These are cases in which the risk assumed by your insurer increases, and therefore, in general, the premium to pay for the policy as well. In these cases, your company will charge you the corresponding amount immediately.

What if I do not notify my insurer of the risk variation?

The consequences if you do not notify your insurance company will depend on the insurer with which you have contracted your policy, although in general, they tend to be negative for you as the policyholder. Thus, depending on the factor that has varied and by which the risk has increased or decreased, there may be cases in which the insurer refuses to cover compensation, since it will consider that you have acted in bad faith. Or it may also happen that the compensation payment is jointly between you as the insured and your company. This will be done in a proportional way between what you pay for insurance and what you would have had to pay if you had informed your company of the risk change.

To avoid having problems with your insurance company and to be well covered in the event that you or your car suffer damage after an accident, we recommend that you always be aware of any variation either in you as a driver or in your vehicle.