There are various cases and circumstances where a person wants backdated car insurance and it might be required to overcome other problems. To exemplify the same, if your insurance policy is already expired but you are not aware of the same, then it is obvious that you wish to take backdated car insurance policy. In such cases, the policy is needed to cover the period when your policy is expired and you forget to renew the same. In the same way, you might buy a car and drive it home from the garage and meet with an accident in between.
So, in such situations, what can you do with the expired insurance? Is it possible to get a car insurance policy and shift the date back to cover up the period that is required? Unluckily, the answer is no. Moreover, it is beneficial for the driver as well as the victim to be able to grab backdated car insurance but the issue arises here is that the insurance company will not able to get any advantage out of such type of car insurance.
The thing is that you have to know that the insurance company is also a kind of profitable business firm and they want to earn some profit out of it. If they make no money from this, then it is of no use for them. The working of such companies is to provide coverage to their client by earning a monthly fee and also paying out in case of an accident or damage. The monthly charge is their profit and the motive is that they can easily make more money as compared to pay-outs that they will make during the accident of the car insurer.
That is the reason that they make their policies more impressive for the clients who made fewer accidents and damages as compared to others who are more likely to meet with an accident. The safe drivers an insurance company will get, the more will be profit margin. Thus, it is easy to grab car insurance at a minimum cost when you have a history of fewer accidents.
But if in case, you meet with an accident and you get back to your insurance company to backdate your insurance for the period of accidents, then you should guarantee that the company must make pay-outs from the deal and therefore, they will face the loss of money by doing a deal with you. On the other side, if the company is having that offer as an option, then it is obvious that they have a huge number of customers who want backdated car insurance. Due to the rush of clients who want the same insurance, the company is providing insurance and makes a small amount of profit from a large number of car owners and drivers.
What are the legal issues attached to backdated Car Insurance?
Are there any issues related to backdated car insurance? Yes, there are a few issues related to the backdated insurance concept. The whole principle behind is to make a driver safe on the road by providing some legal pay-outs for the damage they have faced. As we all know, it is illegal to drive without any valid car insurance in any nation.
So, do you think is it possible to get backdated car insurance? The reason is that it creates difficulty for authorities to figure out which drivers have real insurance and which does not have? In a short and precise manner, it increases the chances of fraud and encourages drivers to drive a car on the road without any insurance policy.