Why would my insurer cancel my insurance policy?
Technically, in most states your insurer can cancel your policy only if:
- You fail to pay your premium;
- You lose your driver’s license;
- You are guilty of fabric misrepresentation during the appliance process–i.e., you fail to notify your insurer of a recorded violation, like a drunk-driving offense; or
- You fail to report a considerable change of risk, like buying a high-powered sports car to exchange a family sedan.
However, your insurer can choose to not renew your policy for a spread of reasons.
Do you have a nasty driving record? Have you ever received tons of speeding tickets? Have you ever been caught driving drunk? Not only are these scenarios considered unsafe and illegal, they’re justifiable cause for your insurer to label you a nasty risk and refuse to renew your policy. (Some underwriters may feel compelled to cancel policies after just one accident.)
Where does one live? Has the neighborhood changed within the previous couple of years? Have the accident or crime rates risen noticeably? As regions are reassessed periodically, their status could change and you’ll suddenly end up living during a high-risk area, where your insurer’s rates might not be capable cover losses.
What do I do if my insurer cancels or refuses to renew my insurance policy?
Even “good” drivers can find themselves within the position of being dropped by their current carrier. Reasons range form a “drinking while driving” violation or other serious violations (that cause you to a high risk) to situations outside your control, like when insurers in your state are suffering severe business losses. Overall rises in claims or losses can cause insurers to become highly selective in determining whom they will afford to insure.
That is why it’s important to notice that if you’re licensed to drive, by law, you’re eligible for insurance. However, your options for brand spanking new coverage could also be limited. Each state has created and regulates a market of pis aller for those that cannot otherwise obtain coverage. These groups have various names, counting on the state you reside in, like assigned risk plans or the residual market. Your insurance agent will know more about the particulars in your state.
Regardless of the rationale you were dropped, you would like to act immediately to urge another policy. Under no circumstance do you have to drive your vehicle without insurance. Call your agent to assist you discover new coverage. If you are doing end up within the residual market, the worth could also be higher but it’s going to be your only alternative in maintaining your freedom to drive.
How do I keep my insurance firm from canceling my policy?
The most obvious thanks to maintain your low-risk status is to stay a clean driving record. If you have been in an accident, consider taking a defensive and perfect driving course. Even those folks who are driving for years rarely know the straightforward tricks to preventing accidents through defensive driving.
Also, check out purchasing special safety and security measures for your car, like anti-lock brakes and an alarm. Your insurance broker can offer you further recommendations on the way to convince your insurer you are a safe driver.