Car insurance companies can cancel your policy, but they need a reason. There are different reasons that it is justified as well with the insured. Here are a few:
Delays in payments. If you do not pay or pay late, canceling your car insurance will soon arrive. The insurance companies insist on the need for all payments to be on time as a condition for continuing to insure your vehicle. There are grace periods, which vary according to each company and the type of insurance that has been agreed.
Deliberately lying. If your insurance company discovers that you lied deliberately, they will cancel your insurance immediately. One of the most common lies in the car insurance is the number of miles driven per year. If the insured decides to hide the truth to get a cheaper rate, it will carry the risk of having they insurance claim denied by the insurance company, just when they are most needed.
Your driver’s license has been suspended. If your driver’s license has been revoked or suspended, your policy will automatically be canceled, which in most cases also extends to people who appear as regular drivers of the insured vehicle. The best, before any drastic changes in the driver’s license, you notify the insurance company.