Reasons for Cancelling Your Auto Insurance Coverage

There are many legit reasons for car insurance cancellation. You can have your coverage dropped for a variety of reasons, making it illegal for you to drive in almost all states and illegal everywhere if you don’t have sufficient financial assets to pay claims. Read on to find out reasons why you could have your insurance dropped.   Check the main reasons for cancelling your auto insurance coverage. If that happens, make sure to get quotes from top auto insurance companies and see if you can get covered somewhere else. Otherwise, a lengthy gap will make you pay a whole lot more upon buying car insurance.

First of all, the insurance company has the right to cancel a contract if a policyholder defaults on payments, or if there is evidence of tampering or fraud. The most obvious reason your car insurance can be canceled is if you fail to pay your premiums. Usually your insurance company will usually attempt to contact you several times before cutting off the policy. For example, in Illinois your car insurance company must mail you a letter at least 10 days before it cancels your policy for nonpayment of premiums.

Your health can sometimes get in the way of your driving. If you have a condition that impairs your ability to drive safely, you could have your license revoked or restricted and your insurance canceled as well.

If you file too many claims your car insurance company may determine that you represent too much risk as a driver for them to continue to insure. Unfortunately, this can happen even if you’re not at fault, such as weather or theft-related claims.

Fraud is another reason why the company will choose to drop coverage. And fraud may refer to anything ranging from lying about the annual mileage to forgetting to add a new driver.

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by Ciprian Gurgu