Five Reasons Why Auto Insurance Policies Get Cancelled
As you already know, auto insurance is a critical thing to have when you drive a vehicle. The idea of your insurance company canceling your policy can be stressful to think about. Unfortunately, insurance companies do cancel people's auto insurance policies for a variety of reasons. Without car insurance, you are responsible for paying accident expenses out of your own pocket and may even face fines and a suspended license. Here are some common reasons why auto insurance policies get canceled.
Failure to Pay
One of the most common reasons insurance companies cancel auto insurance policies is for lack of payment. If you don't pay your monthly premiums, your insurance company will have no choice but to cancel your policy. However, they will probably call you at least a few times to let you know that you are behind on your payments.
Health Problems
There are some medical conditions that make it unsafe to operate a motorized vehicle, such as epilepsy, cataracts, and dementia. If your insurance company discovers that you have been diagnosed with one of these conditions, they may choose to cancel your policy.
Moving Violations
While one speeding ticket probably won't get your auto insurance policy canceled, multiple speeding tickets might. If you have many moving violations like that on your driving record, your insurance company may believe you're an unsafe driver and will cancel your policy to protect themselves.
Lying
If you lied on your application for auto insurance, your insurance company has a right to cancel your policy. For example, if you lied about how many accidents or tickets you've had and your insurance company finds out, they will likely drop you.
Multiple Claims
While it might seem unfair, making too many claims on your auto insurance policy in a short time period can warrant a cancellation. Your insurance company may see you as a big risk that they can no longer afford. If you can afford to pay a small claim out of your own pocket, you may want to do this to avoid a cancellation. For example, if another vehicle scratched your car very lightly, it may be best to pay for the repairs yourself.
As you can see, it is possible to get your auto insurance policy canceled for a number of different reasons. However, if you think you have been unfairly dropped from your policy, don't hesitate to contact your insurance agent to discuss the matter.