However, a company can also issue non-renewals for non-payment. You should be able to find another standard car insurance plan easily. By that time, you should have started another policy at another company to maintain continuous coverage. Cancellations are a different story.
Cancellation can happen at any point during your coverage term, or it could even happen before your coverage starts. Here are a few reasons why auto insurance companies cancel policies:. Usually, something significant has to happen for a car insurance company to cancel your policy. Even so, a cancellation could still come as a surprise.
This might be the case when a company cancels your policy at the beginning of the term because of misrepresentation. When you fill out an auto insurance quote form, you have to be honest about your driving history, other household members who drive, and your vehicles. Insurance companies have a set underwriting period after you buy the policy to investigate your background and situation.
If anything important was left out, the company can cancel your policy. If the situation is bad enough, the insurance company can just cancel your policy instead of sending a non-renewal notice. You should fight the cancellation or non-renewal if you think the auto insurance company has made a mistake. State regulations for insurance cancellations are strict, so if the company did make a mistake, it should take you back as a customer.
When you get a notice of cancellation or non-renewal, call your insurance agent right away. If you have outstanding debts for traffic violations, paying those off might reverse the cancellation.
If the cause of the cancellation is a misunderstanding, your insurance agent should be able to reinstate your coverage. Also, if you received a cancellation notice because of non-payment, some companies will let you pay the rest of your premium within an agreed time frame to reinstate your policy. The next thing to do is to get another insurance policy. In some cases, you can find car insurance from another standard provider easily. However, if you have a DUI or a license suspension in your recent history, you might not find insurance from standard providers.
The next option is to check providers that specialize in high-risk auto insurance. These include but are not limited to the following providers:. In rare cases, you could be denied even by these companies. States require auto insurance companies to cover a portion of the assigned risk pool according to market share.
So you might be able to find coverage from a company like Geico through the assigned risk pool. If you know you have a payment coming up that you can't afford, you need to make some arrangements. First, try to see if your car insurance company will push out your payment for one month. Insurance companies let customers do this once in a while.
If that won't work, you can always change your coverage options. A change in coverage is usually reflected on your next billing cycle. For example, maybe you have a good health insurance plan so you don't need to have medical payments coverage on your policy. Or, maybe you can lower your liability limits to the state minimum for a few months. Nonpayment of membership dues when they are required by your policy. You made a fraudulent car insurance claim. Misrepresentation of any of the following information about you, your household members or anyone who customarily drives your car 1 safety record; 2 annual miles driven in previous years; 3 number of years of driving experience; 4 record of prior car insurance claims; 5 any other factor found by the California insurance commissioner to cause a substantial risk of loss.
You knowingly made a false statement on your car insurance application. You knowingly and willfully made a false statement on a claim submitted to your car insurance company. You violated the terms and conditions of your policy. You failed to disclose your car accidents and moving traffic violations or car insurance claims for physical damages within the previous 36 months if your application requests this information.
You did not fully disclose facts about car insurance claims. You made a false or fraudulent car insurance claim.
Your car is mechanically defective. You carry passengers for hire. You use your car for the business of transporting flammable materials or explosives.
A change occurs during the policy period that substantially increases risk. Your car has not been inspected or fails inspection. If the Delaware commissioner of insurance shows that the continuation of your policy may be hazardous to you or the public.
Your motor vehicle registration certificate has been suspended or revoked during the policy period. You made a material and willful misstatement or omission of fact to your insurance company or its employees, agents or brokers in connection with an insurance application or claim. Your car has been transferred to a person other than your beneficiary , unless the transfer is permissible under the terms of your policy.
Material misrepresentation or fraud. Nonpayment of any premium or installment. Material misrepresentation, like your garaging location. You failed to disclose accidents and moving violations for the preceding 36 months if required in the application.
You failed to disclose necessary underwriting information. You made a false or fraudulent claim. Your car is mechanically defective in a way that endangers the public. Your car is used to carry passengers for hire except for car pools. Your car is used to transport flammables or explosives. Your car has changed shape or condition during the policy period in a way that substantially increases the risk. The license of the principal driver of the car is suspended or revoked. The policy has a conditional renewal.
The policy has been in effect for 60 days or less and the reason for cancellation is not prohibited. You violated the policy conditions. You failed to disclose your traffic record. You pursued a fraudulent claim.
Your car is used to carry passengers for hire except carpools. Your car has changed in a way that would increase the risk. Your car has not been inspected or fails to pass. Your car insurance company may go out of business: It has an action ordered due to rehabilitation or liquidation. Continuation of the insurance policy might create a condition for the insurance company that is hazardous to policyholders, creditors, members, subscribers, stockholders or the public.
You failed to fully disclose your motor vehicle accidents and moving traffic violations for the preceding 36 months if requested in the application. You made a false or fraudulent claim or assisted someone with a false or fraudulent claim.
The car is mechanically defective in a way that endangers public safety. The car is used in carrying passengers for hire except for carpools. The car is used in the business of transportation of flammables or explosives. The car is an authorized emergency vehicle. The car changed shape or condition during the policy in a way that substantially increased the risk. The car has not been inspected or failed to qualify. You, your household members or anyone who customarily drives your car has had their license suspended, revoked or denied during the policy period.
You, your household members or anyone who customarily drives your car is 1 under treatment for epilepsy or heart disease and does not produce a certificate from a physician testifying to their ability to safely drive a car; 2 uses drugs or alcohol to excess. Fraud, willful misrepresentation or concealment of any fact relating to the issuance or continuation of the insurance policy or relating to a claim.
You violated the terms and conditions of the policy. The place of residence is changed to a state or county where the insurance company is not licensed. Nonpayment of dues or fees to an association where your membership is required in order to obtain or continue the insurance policy.
Fraud or misrepresentation regarding the insurance policy or an insurance claim. You, your household members or anyone who customarily drives your car has had 1 their license suspended or revoked during the policy period, or if the policy is a renewal, during the days immediately preceding the policy effective date; 2 has used the insured vehicle to race.
You, your household members or anyone who customarily drives your car has within the 36 months preceding the notice of cancellation been convicted or forfeited bail for any of the following: 1 criminal negligence resulting in death, homicide or assault arising out of the operation of a motor vehicle; 2 driving while intoxicated or under the influence of a drug. Fraudulent misrepresentation. You violated policy conditions. You or anyone who customarily drives your car has had their license suspended or revoked during the policy period, or if a renewal, during the policy period or days immediately preceding the policy effective date.
Fraud or material misrepresentation. Fraud or material misrepresentation in relation to an insurance claim. The insurance company has not received an application for insurance in which a valid binder has been issued.
You violated the terms or conditions of the policy. Material misrepresentation or fraud in relation with the application, policy or claim. A matter or issue related to a risk that might endanger public safety. You or a driver covered under the policy have 1 two or more at-fault accidents or any combination of three or more accidents and moving violations within the preceding 36 months; 2 three or more moving violations within the preceding 24 month period.
Material misrepresentation about your driving record for which the insurance company would not have provided coverage. You or another driver covered under the policy have been convicted of one of the following: 1 driving while intoxicated or impaired by drugs; 2 homicide, assault, reckless endangerment or criminal negligence arising out of the operation of the vehicle; 3 using the car to participate in a felony. You intentionally misrepresented information on an application to prevent the insurance company from obtaining a credit report, credit score or other credit history.
Fraud or material misrepresentation in your insurance application or renewal. You or household members who drive your car have had their license revoked or suspended. You fail to have your car inspected after the insurance company requests an inspection after paying a collision insurance claim.
Your car insurance company can cancel you up to 90 days after the policy renewal date if 1 the insurance company is making a general reduction in written policies in Massachusetts or 2 you have failed to complete and return the renewal application at least 30 days prior to the expiration date of the previous policy. You or another driver lost your license and the suspension or revocation is final.
The risk is unacceptable to the insurance company. You did not fully disclose all car accidents and traffic violations for the preceding 36 months. You did not fully complete the written application for insurance.
You did not give a written notice of loss claim or lawsuit against you, or you refused to cooperate in the investigation or defense of a claim or lawsuit. Further use of the car by the excluded driver will be grounds for cancellation. Failure to maintain membership in an organization when the policy is dependent on membership. You violated the terms and conditions of the insurance policy. Discovery of an act of omission or violation of policy conditions that occurred after the policy effective date and substantially increased the risk.
Conviction of a crime arising out of acts increasing hazards the vehicle is insured against. A change that increases the risk. The insurance commissioner determines that continuation of your insurance policy would violate Nevada law. Failure to sign the required New Hampshire residency form. At your request. Material misrepresentation or nondisclosure of a fact that would increase the risk. Lack of cooperation in matters which could substantially increase the risk.
Failure to provide reasonable and necessary information to the insurance company. Misrepresentation, fraud or concealment of fact. You submitted a fraudulent claim. There is a change which substantially increases risk. Nonpayment of premium or an installment that was overdue, and any unpaid fees charged for installments, late payments or reinstatement. Fraud or material misrepresentation when obtaining the insurance policy or in submitting an insurance claim.
You and the insured vehicle are not licensed, registered or principally garaged in North Carolina. You provide false or misleading information that would affect risk. Your car is mechanically defective in a way that endangers public safety. Your car is used to carry passengers for hire except for carpools. Your car is used to transport flammables or explosives for an illegal purpose.
The car is altered in a way that would substantially increase risk. You failed to pay membership dues or fees to an organization that was a prerequisite for obtaining or continuing the policy. The North Dakota insurance commissioner determines that continuation of the policy would place the insurance company in violation of the law or would be hazardous to the interests of policyholders, creditors or the public.
Misrepresentation, fraud or concealment of fact to the insurer. You had negligent acts or omission that increased risk. The provider is usually required to send you a notice of nonrenewal a certain number of days before the end of your policy to give you time to shop for new coverage. There are many reasons insurers can choose not to renew your coverage, but here are a few of the most common:. On the other hand, an insurance cancellation means that your policy is cancelled at any time other than the renewal date.
Cancellations can only happen for very specific reasons. Once you purchase a policy, the insurance company usually has 60 days to decide not to offer you long-term coverage by issuing a cancellation. After that, there are only three reasons an insurance policy can be canceled:.
You can challenge your car insurance company after receiving a policy cancellation notice. You could first call your insurance company to discuss whether your insurer might be willing to keep your policy.
Depending on the reason for your cancellation, you may be able to reach an agreement with your carrier. However, if contacting the company proves unsuccessful, you may want to contact your state insurance department to file a complaint if you believe your policy has been canceled unfairly. Depending on the state, you may be protected from cancellation for specific reasons, such as your age. The state insurance department might investigate to see if the cancellation was justified.
Unfortunately, if your car insurance company drops you from coverage, getting another policy could be difficult and expensive, depending on the reason for your cancellation. The reasons that often lead to the cancellation, such as a license suspension, may be viewed by other insurance companies as evidence of high-risk behavior, which generally leads to higher premiums.
However, some companies offer high-risk auto insurance, so being cancelled for a driving incident does not mean you will not be able to find replacement coverage.
Although your premium may be higher if you have accidents, tickets or a DUI conviction, most providers offer discounts that could save you money. This type of auto insurance is typically available to drivers who have trouble buying a policy in the private market. The best car insurance depends on where you live, your personal details, your driving history and your preferences. If you have been dropped from coverage and you are looking for a new policy, you may want to get quotes from several companies to find an option that fits your needs.
Yes, you will likely be able to find coverage again if your carrier dropped your policy. However, you may not want to hide the fact that you were dropped from your new carrier. Misrepresenting an insurance application can lead to having your policy canceled all over again. There are only three reasons that an auto policy can be canceled: nonpayment of premiums, insurance fraud or license suspension. However, insurance companies can opt for nonrenewal, which ends your policy at the end of its term, for a wide variety of reasons, from risk avoidance to changing insurance offerings.
How We Make Money. Lizzie Nealon. Written by. Lizzie Nealon is an insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited By Cate Deventer. Edited by.
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