Getting a notice of cancellation or nonrenewal on an automotive insurance policy can be startling and leave the policyholder wondering what to do next. If an insurance carrier cancels or doesn't renew a policy because of your behavior, this can lead to higher premiums with the company you switch to. Learn the reasons that auto insurance companies cancel or decline to renew policies so you can prevent this from happening to you.
Having Too Many Citations or Accidents
Receiving citations for speeding or other moving violations is a red flag to insurance carriers because the cited behavior is a risk factor for collisions. That puts you at risk of policy nonrenewal. If your license is suspended because you have too many tickets within a relatively …show more content…
If that's true for your insurer, you'll need to find a company that does cover DUI offenders, and your premiums will be substantially more expensive.
Making a Fraudulent Claim
Examples of fraudulent claims include exaggerations of vehicle damage or lying about how a collision happened. For instance, a vehicle owner might accidentally back into a utility pole and then claim that the vehicle damage was due to a hit-and-run while it was parked somewhere. If the insurance company learns what actually happened, the policy can be canceled.
The individual also may be in legal trouble now, since insurance fraud is illegal in all states.
Being Late on Payments
Multiple late payments may lead the insurer to decide a customer is more of a hassle than it's willing to deal with. Every time the policyholder doesn't pay on time, there's a lapse in coverage and sometimes a cancellation of the policy for non-payment. When the person does finally pay, the insurer has to start the coverage up again. This costs time and money, and makes the customer look
Having Too Many Citations or Accidents
Receiving citations for speeding or other moving violations is a red flag to insurance carriers because the cited behavior is a risk factor for collisions. That puts you at risk of policy nonrenewal. If your license is suspended because you have too many tickets within a relatively …show more content…
If that's true for your insurer, you'll need to find a company that does cover DUI offenders, and your premiums will be substantially more expensive.
Making a Fraudulent Claim
Examples of fraudulent claims include exaggerations of vehicle damage or lying about how a collision happened. For instance, a vehicle owner might accidentally back into a utility pole and then claim that the vehicle damage was due to a hit-and-run while it was parked somewhere. If the insurance company learns what actually happened, the policy can be canceled.
The individual also may be in legal trouble now, since insurance fraud is illegal in all states.
Being Late on Payments
Multiple late payments may lead the insurer to decide a customer is more of a hassle than it's willing to deal with. Every time the policyholder doesn't pay on time, there's a lapse in coverage and sometimes a cancellation of the policy for non-payment. When the person does finally pay, the insurer has to start the coverage up again. This costs time and money, and makes the customer look