Your car insurer can’t cancel your car insurance out of the blue with no reason. There are very specific times an insurer can cancel your car insurance, and the reasons are dictated by your state’s laws. Learn what to do if your car insurance is canceled by your insurer right here.
If your insurer drops your coverage mid-term, ask them to explain why and then research whether or not they canceled your coverage for a legitimate reason.
Reasons Your Car Insurance Policy Can be Canceled Mid-Term
There are a number of legitimate reasons your car insurance can be canceled mid-term by your insurer.
They vary state by state, but the most common reasons include:
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- Missed payments
- Driver’s license suspended or revoked
- No vehicle registration
- Customer fraud on application
- Making a fraudulent claim
- Convicted of a serious driving offence like a DUI
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Some states allow insurers to cancel your policy within the first 60 days for any reason. Be sure to research your state laws before committing to an insurance policy, so you know your rights.
Difference Between Cancelation and Non-Renewal
There are two ways your insurance company can choose to no longer provide car insurance: cancelation and non-renewal.
Cancelation means your insurer is ending your policy before the coverage period is finished. You had to do something seriously wrong for your insurer to cancel your policy mid-term.
Non-renewal, on the other hand, is when your insurer chooses to not renew your policy once your coverage period is over. They don’t have to have a specific reason for not renewing your coverage.
The most common reasons an insurer chooses not to renew your coverage are:
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- You have too many at-fault accidents
- You’re a risky driver
- They no longer offer the level of coverage you have
- They are not insuring as many vehicles as they previously were
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Your insurer should give you at least 30 days’ notice if they don’t plan to renew your car insurance. This gives you enough time to find another insurance provider and not have a gap in your coverage.
Dealing with Your Own Cancelation
Getting the news that your car insurance has been canceled can be scary. You weren’t expecting to no longer be insured, and you have to scramble to find new coverage.
There are a number of steps you can take after your insurance is canceled:
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- See if your provider is willing to take you back. Sometimes your insurance provider is willing to reinstate your car insurance policy if you call them and make a convincing case as to why it should be reinstated. Trying to work with your insurance provider is always the first step you should take when your car insurance is canceled mid-term.
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- Write a letter to your insurer and the state. If calling your insurance provider didn’t work, and you think your policy was cancelled illegally, the next step is to write a letter to both your insurer and the state government. Many states have government departments that help people with insurance appeals.
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- Look for a new insurance provider. If you don’t win your appeal or you know your insurance was canceled for a legitimate reason, it is time to start looking for a new insurance company. It is important you start looking for a new insurance provider as quickly as possible because a lapse in coverage is considered a high-risk behavior, and some insurance companies may not approve your application.
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Frequently Asked Questions
Can Auto Insurance be Backdated?
No. An insurance company will not allow you to get a backdated auto insurance policy. No reputable insurance company will allow you to get a backdated auto insurance policy because that would suggest the car was insured during a time when it wasn’t and is a form of fraud.
If your car insurance is canceled mid-term, there will likely be a gap in your coverage between when your original insurer dropped you and when you found a new insurance provider.
Most insurers give you between 10 and 30 days’ notice before your coverage is cancelled to find a new insurance provider. If you don’t find a new provider during that time, you’ll have a gap in your coverage.
You cannot backdate your new policy to the date you were dropped by your original insurer. Your new coverage will begin the day you’re approved by your new insurer.
Is There a Car Insurance Blacklist?
There isn’t a list of blacklisted people shared amongst car insurance companies. However, many insurers ask you about your insurance history over the past five years before they approve your application.
If your insurance has been canceled within the last five years, this is a red flag to many insurers, and they may choose to deny your application.
It is important that you’re honest on your car insurance application and disclose any canceled policies. Lying on your application is a form of fraud, and if your new insurer finds out, they can cancel your insurance policy.
Where to Find Car Insurance Quotes for Convicted Drivers?
It can be difficult to find affordable car insurance if you’ve been convicted of a serious driving offense, but there are a number of insurance companies who will provide you with coverage.
Some insurance companies that accept high-risk drivers include:
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- Direct Auto
- United Automobile
- SafeAuto
- Infinity Insurance
- Dairyland Insurance
- The General
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Convicted drivers will have to pay more for their insurance, and people convicted of a DUI can expect to pay up to ,000 more per year for car insurance.
In most cases, a DUI is removed from your record 6 years after the offence. After it has been removed from your record, your insurance premiums should decrease significantly.
However, it is still important to disclose your driving convictions on insurance applications if the insurance company asks about them. Not disclosing them is fraudulent and can result in your new insurance policy being canceled.
Where to Find the Best Car Insurance Rate?
The best way to find affordable car insurance is to use a tool that compares car insurance rates. You input information about yourself and your car and are presented with insurance rates from a number of different providers.
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