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Do I Have To Tell My Insurance Company If I Scrap My Car?

The answer to this question is No. Suppose you have a policy with a company other than your own. In that case, you have no obligation to notify them of any change in your car. They have no right to interfere with your right to notify them of a change in your automobile. They are simply providing you with the means of protecting yourself against any possible liability.

When you are not the owner of a policy, you are simply one of a number of 'applicants' waiting to be considered in the order of their 'eligibility.' If you own a policy, you are simply one of a number of 'insureds' who have paid for, and are waiting to be paid, a certain amount of insurance.

The company is perfectly within its rights in refusing to consider you as a 'customer' if you tell them that you intend to scrap your car or destroy it.

Suppose they do not know that you are going to scrap your car. In that case, they have no means of protecting themselves against the possibility of its being destroyed.

The sole purpose of the insurance company is to protect the company from possible loss by fire, theft, or collision with a motor vehicle. When you buy insurance, you are permitting them to protect themselves against the loss of any of their 'customers'-- and they are not required to consider you as a 'customer' until you have paid them for your insurance.

The only 'customers' you have to notify are the company's underwriters, who will pay you for the loss of your car.

If you are insured by a company other than your own, you are paying them for the privilege of being covered under their policy. They are not interested in the condition of your car, what your insurance is, or when you bought your insurance. They are simply providing you with the means of protecting yourself against the loss of your car. If they are not notified of a change in your car, they have no way of protecting themselves from the loss of any of their 'customers.'

Suppose you own a policy and notify them of a change in your car. In that case, you are 'customizing' your policy and providing them with a means of protecting themselves against the loss of you and your car.

So long as you are covered under their policy, notify them, and pay them the premium on your policy, they have no right to interfere with changes in your car.

If you are looking for a scrap car removal service feel free to contact us at (604) 690-4242.

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