Car insurance policy cancellations

Reader question:

What could cause my auto insurance policy to be cancelled?

Lucius

Great question.

There are several reasons why your car insurance policy might be cancelled, and you want to avoid all of them. Mainly this is because being without auto insurance can be disastrous, not only because you could get into an accident while uninsured, but also because if you get caught by the state you could end up facing heavy fines for tickets and court costs, and also risk losing your license and/or the registration of your vehicle. And once you’ve had you policy cancelled, it’s harder to get it back again, and you may be charged higher rates upon renewal. Here are some reasons your car insurance policy might be cancelled.

  • Non payment. This is the main one. If you don’t pay your insurance then your auto insurance company has a certain amount of days in which to notify you, and then they can cancel your policy.
  • Misrepresentation. If you have several accidents or traffic tickets in the past that you didn’t reveal to your car insurance company when starting out your policy, they have sixty days to investigate you and if they find out, they can cancel your policy anytime within that period.
  • Your license is suspended or revoked. In some cases, this might not affect you legally, but in states where you are required to have insurance even if you aren’t allowed to drive your car, this is disastrous.
  • You cancel it. You might have cancelled your policy because you are dissatisfied or because you couldn’t make a payment. However, it’s extremely important to have proper insurance coverage, so you want to get coverage back as soon as possible.

Cheers,

Fashun Guadarrama.

Posted in: Auto Insurance

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  • Mosley

    Is it true that some car insurance companies cancel your policy if you just have one claim?