Auto insurance policy backdating is a topic that confuses many policyholders. The facts are that this means that a Coppell, Texas insurance agent puts a date on the policy that is earlier than when the policy actually takes effect. This is something that many drivers think is a simple matter. However, for an insurance agent, this is not something to be taken lightly.
Backdating a policy like this means that the independent agent says the customer has insurance at a time they did not actually have it. This is not only illegal, it is actually a form of insurance fraud. The company could land itself in hot water if it was found out that they backdated the policy. Another concern is not just that the company could get into legal trouble, but if the driver had an accident during the time the policy was backdated, the company would have to pay.
Upfront and honest insurance agents cannot and will not backdate a policy like this. You may wonder, why would a customer even want this? Well, mainly it is because there is often a fee attached when the customer goes uninsured.
The best way for a customer to avoid this problem and therefore avoid even the idea of backdating a policy is by keeping up with the current insurance. Sometimes it may be a matter of not being able to make a payment. If this is the case, the policyholder may be able to work out a payment plan with his or her agent or insurance company.
Insurance is important. Not only does it protect you monetarily in case of an accident, most states have certain requirements that must be met, and driving without insurance can result in a ticket or even losing your driver’s license—something that no driver wants to face.
