Closing your car insurance or canceling your insurance company feels horrible and makes your mind start racing. What did I do? How can I take out car insurance again? who can help? do not fear; We have answers to these questions and more. We’ll share the reasons why insurers cancel policies to help you try to avoid this unfortunate situation altogether. But if you suddenly end up without coverage, we’ll teach you what to do if your car insurance is canceled and what to do next and your options for getting auto insurance after a cancellation.
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1. pause & find out why your policy was cancelled
take a deep breath and try to get to the bottom of your question: why was my car insurance cancelled? There are many reasons why your auto insurance company dropped you. The most common reasons for insurance cancellation include:
- Mispayment. Forgot to pay your car insurance? The most common cause of cancellation by the insurance company is the non-payment of your premiums.
- too many accidents or traffic violations. Insurance companies may cancel or choose not to renew a customer’s insurance for major traffic violations, such as DUIs or violations that result in suspension of insurance. driver’s license, or for making too many claims within a certain period of time.
- no reason. no reason is not a great reason, we know, but many states allow insurers the right to cancel your auto insurance within the first sixty to ninety days of your policy (often referred to as the “subscription period”) without the need to indicate a reason. Insurance companies will often do this if they find discrepancies in your policy application, so it pays to be honest when applying for a car insurance policy for the first time.
- driver’s license suspension
- registration suspension
- tickets without insurance
- possible jail time
- civil and criminal penalties if you have an accident
- fines pronounced
- have to meet sr-22 (or similar) requirements for several years
- personal information: be prepared to provide your full name, address, date of birth, and marital status.
- Your current insurance status: Be prepared to answer questions about your current insurance status and explain your situation.
- Vehicle Information: You will need to share the year, make, model, and serial number of the car you want to insure.
- Driving History: Be prepared to talk honestly about your driving history, even if it includes accidents or violations.
- Payment history: Insurers may want to know if you’ve made payments on time in the past.
- Contact Information: By providing your phone number or email, you can access your quote at a later time.
You may be able to remedy the situation immediately, depending on why you were abandoned. For example, if your insurance policy was canceled for non-payment, some insurance companies will allow you to pay off the balance within a specified time frame and reinstate your policy. so before you panic, pause, call your insurer and see if you can come up with a solution.
2. don’t drive without car insurance.
No matter where you live, driving without insurance or proof of financial responsibility is illegal. do not do it! From Florida to Washington state, you will face some type of ticket for driving without adequate coverage. Penalties vary by state, but may include:
Receiving notice that your insurance has been canceled can be very stressful, as you are legally not allowed to drive without it. while you work to get insurance again, take public transportation. ride your bike. listen to a podcast while you walk to work. ask your friends or family to take you! It can be a little inconvenient, but it’s better than losing your driver’s license or facing jail time.
3. apply for a new car insurance policy if necessary
As we mentioned earlier, always call your current insurer and see if they can resolve the issue first. But drivers who aren’t eligible for reinstatement can start looking for new insurance options online, over the phone, or in a store. Make sure you have the following information on hand to get an accurate and fast quote.
Remember, you want to find quality coverage, but you also can’t legally drive until you’re covered again. so be sure to research and shop efficiently.
4. be prepared for different insurance rates
Most likely, if you’ve been dumped for non-payment, excessive claims, or multiple traffic violations, you’ll be considered a high-risk driver facing higher insurance rates. but do not worry! Some insurance companies, like Direct Auto, are willing to work with high-risk drivers and help them find quality, affordable coverage, regardless of their driving or payment history.
If you’re worried about your current insurance company canceling or not renewing your auto policy, we’re here to help. If you are having difficulty finding insurance after an accident, we would love to help. Even if you’re just looking for new rates, we’ll work hard to get you the discounts you deserve, coverage you can count on, and rates you can afford. Call us, stop by one of our stores, or visit our website for a free quote.