Insurance shelters the policyholder and in most cases, it covers other people who use the car or the driver. However if the car catches into an accident which is not in the interest of the policyholder, or in harm with the agreement between the policyholder and the insurance company, the insurance policy will not refuge the damages from such accident.
In examples where the insured vehicle gets wholesaled to another person, the new owner is sheltered by the third party liability Insurance and also by the complete car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a fresh active insurance policy, all deductibles under the insurance will be waged by the new car owner. You can get various affordable insurance quotes from Plano Insurance.
Depending on the car insurance policy contract between you and your insurance company, there might not be a need for you to inform them when the terms in the policy agreement changed. The significance of refusal to inform the insurance might be the penalty and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.
Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.
