Car insurance coverage exists to protect consumers 24 hours a day, 7 days a week, and consumers rightly expect all-hours call lines and prompt service when a collision or need for a claim arises. Over time, the money paid to an insurance company will add up to a significant amount, especially if a client chooses to stay with a particular company for a period of years or even decades. For many consumers, it can be difficult to see the logic in paying large amounts for a service that will rarely be used, but when it is necessary, having the right car insurance is absolutely essential to mitigate the amount that a consumer needs to pay out of pocket. It is also important that a consumer ensure that in addition to having the right coverage for their vehicle, their policy is in force. So long as premiums are being paid on time and no attempts at insurance fraud are being made, this should not be a problem, but with a new or revised policy, it is important to understand when coverage goes into effect.
Typically, insurance companies work on a day-to-day basis. Insurance liability cards will list a day, month and year that coverage goes into effect, rather than simply a month like car registrations or an actual time of day. It is assumed that a policy will expire at midnight on its last day, but any claims made during the final hours of a policy may be difficult to claim. When a new policy is purchased, a company will ask the new client when they would like the insurance coverage to begin. This information is then input into the insurance company's database as well as entered into what is known as a "binder." As soon as the effective date of the coverage passes, it is in force.
What consumers must understand is that while it is possible to have a temporary insurance card almost immediately faxed to them, the date on the card is what will make all of the difference. A temporary card will list when coverage goes into effect, and typically show an expiry of 30 days. If coverage has not yet begun according to the card, or is even one day past the end dates, it will be of no force or effect.
On the other side of the coin, motorists can be ticketed for not carrying their liability card, even if the policy is in force. State laws often mandate that physical proof of insurance be produced if law enforcement requests it. It is important to not only be aware of when car insurance coverage goes into effect, but to carry proof of it.
