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What to Do if Your Auto Insurer Cancels or Doesn't Renew Your Policy

When you have auto insurance, the company providing you with the policy can decide to cancel your policy at any time or choose not to renew your policy at any time. If this happens, you will need to find insurance elsewhere, and here are several things you should do and know if this happens.

Understand the Difference Between the Two

It is always important to begin by understanding that there is a big difference between your insurance company choosing to cancel your policy and them choosing to not renew your policy, and you should read the letter carefully to see what it says. A canceled policy is always much worse than when the company decides to not renew the policy, and this is because a canceled policy means that the insurance company no longer wants to insure you. The primary reason for this is most likely because you are too much of a risk to the company.

For the company to choose not to renew your policy, it is most likely for a reason that does not have anything to do with you. It could simply be that the insurance company wants to remove coverage from all drivers in a certain area, or it could be that the insurance company wants to focus more on other types of insurance products and not on auto insurance.

Find Out the Reason Behind It

If you cannot figure out why this is happening, you could call your company and ask them. In many cases, drivers do know why they are being canceled, and it is often because they did something wrong. For example, if you gave the insurance company false information as a way of trying to commit fraud, they would cancel your policy for this reason. If you were charged with a DUI, they may also decide to cancel your insurance.

Get a New Policy Before Your Current One Ends

The best thing you can do if you are in this position is to find a new policy right away. If you wait too long, you will have to drive without any insurance coverage, and you will also have to deal with a gap in your insurance. Having a gap in coverage is typically considered a risk to insurance companies, which means you may have to pay more for the policy you get after being canceled. To get a quote, contact an auto insurance company today.