In most cases, you can cancel your auto insurance policy at any time as long as you follow the steps outlined in your policy. But can your auto insurance drop you? Keep reading to discover the answer and learn more about insurance.
Can My Auto Insurance Drop Me?
Yes, auto insurance companies can cancel your coverage if at some point you become riskier to insure than when you first bought the policy.
Auto insurance companies are legally allowed to drop customers for a variety of reasons, some more obvious than others. These include:
- Non-payment of premiums: If you fail to pay your premiums on time, your auto insurance company may drop you.
- Policy violations: If you violate the terms of your policy, such as driving under the influence or using your car for commercial purposes, your auto insurance company may drop you.
- High-risk behavior: If you are involved in multiple accidents or receive several traffic violations, your auto insurance company may consider you to be a high-risk driver and may drop you.
- Fraud: If you commit fraud by providing false information or making false claims, your auto insurance company may drop you.
In any case, insurance companies are usually required to notify you in advance if they plan to cancel your coverage.
What to Do if You Are Dropped
If your auto insurance company drops you, you will need to find new coverage as soon as possible. It is important to shop around and compare rates from different insurers to find the best coverage at the most affordable price.
Before you start shopping for new auto insurance, make sure you understand why your previous insurer dropped you. If it was due to non-payment of premiums, you should work out a payment plan with your new insurer to avoid being dropped again in the future.
If you were dropped due to high-risk behavior or policy violations, you may need to take steps to improve your driving record or address the issues that led to your previous insurer dropping you.
In conclusion, auto insurance companies can drop customers for a variety of reasons, including non-payment of premiums, policy violations, high-risk behavior, and fraud.
If you are dropped by your auto insurance company, it is important to find new coverage as soon as possible. Be sure to shop around and compare rates from different insurers to find the best coverage at the most affordable price.
To learn more about Auto Insurance, contact our experts or check out our previous blog, “Collision vs Comprehensive Insurance: What Is The Difference?”
RF1 Insurance Services: Auto Insurance in Southern California
Looking for auto insurance you can rely on? At RF1 Insurance, we work with some of the world’s most trusted insurance companies, including Safeco, Guard, Stillwater, National General Premier, Aegis, and the California FAIR Plan.