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Steps To Take If Your Auto Insurance Policy Is Cancelled

In most states, drivers are required to carry auto insurance. Even if you happen to live in a state where auto insurance is not a requirement, it is always in your best interest to protect yourself financially by carrying an auto insurance policy. Since auto insurance is so important, it can be quite alarming to learn that your insurance company has cancelled your policy. In the event that your auto insurance policy is cancelled by the insurer, it is essential to be proactive. Take the following steps if you find yourself in a situation where your auto insurance has been cancelled:

Contact Your Insurance Company

After learning that your auto insurance has been cancelled, the best thing you can do is contact your insurance company directly, as soon as possible. Insurance companies cancel auto insurance policies for a variety of reasons, such as falsifying information on your application, suspended licenses, DUIs, multiple moving violations or accidents, and failure to pay premiums. If you have forgotten to make a payment and your auto insurance policy has been cancelled, a representative may be able to help you get it reinstated after payment is made. If your policy has been cancelled for a different reason, your insurance company can explain the reasoning and let you know what options you have.

Start Shopping for a New Policy

In the event that you are unable to get your current auto insurance policy with your insurance company reinstated, it is very important to begin shopping for new auto insurance right away. Insurance companies are required to provide notice of cancellation in advance before coverage is ended—the length of advance notice will vary according to state laws. It can be very dangerous to drive without auto insurance, and in many places, it is illegal, so if you receive notice that your policy is being cancelled. it is imperative to buy a new auto insurance policy to avoid a lapse in coverage.

Explore the Non-Standard Insurance Market

If your auto insurance policy is being cancelled due to excessive moving violations or accidents, DUIs, or a suspended license, you may find that other insurance companies are not eager to sell you a new policy. If this happens, you may need to explore the non-standard insurance market, which offers auto insurance policies for harder to insure drivers. If you need to buy an auto insurance policy in the non-standard market, it is important to note that your premiums may be higher than what you have paid in the past.