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It may be surprising to know that not a lot of people understand the fact that insurance and backdated car insurance are two of entirely different things. For the longest time, some even believe that the two are synonymous and there are no major differences separating the two – these people typically do not figure out the differences until much later, or worse too late. This article aims to help you understand what backdated liability insurance is and anything that is related to it, ultimately giving a clear picture that it, indeed, is nowhere near auto insurance. With your new knowledge regarding this matter, hopefully you will be able to make the right decision should the situation arises your need for it. Differences between insurance and backdated liability insurance
While most of people are not aware of the differences, they typically are aware of what insurance is in general. Auto insurance exists with the sole purpose to financially protect a driver against any potential cost from damage as a result of car accident. The very essence of this idea is that you, as a driver, are paying sum of money for cover so should there is an accident, any cost incurred to the driver may be paid directly on your behalf – you, in turn, are only required to pay the excess cost left. Insurance has long been considered as a lifesaver due to its ability to help you out during what possibly is considered as the toughest time of your life. For instance, one day you got into a car crash and from the investigation it was found that you were at fault, chances are you weren’t able to pay for damage and relied on your insurance. Using the same scenario, those without a car insurance are not only jeopardizing their financial health, but also putting the other party at risk since they most likely wouldn’t be able to get what they deserved – be it medical attention or auto repair. Not only that, driver with no insurance also will most likely get into trouble as having an insurance is a legal requirement nowadays. One common practice is, the uninsured driver immediately purchase an insurance, but deliberately scale the date back a few weeks or even months to get benefits – this practice is referred to as backdated car insurance.
In short, no. Altering your car insurance to earlier timeline that when the document or policy is originally purchased is widely frowned upon as it would put your insurer in a very difficult situation. Not only is this practive frowned upon, in a few states in the U.S., backdating practice is now considered as an insurance fraud. However, some insurance company consider backdated insurance acceptable when it comes to other types of insurance – life insurance, for instance. This is due to the risk that the insurer has typically hasn’t changed from what the risk would have been like a few weeks ago whereas with the backdated car insurance, the risk would have been lower back then.
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