Last updated: August 2022
Having your auto insurance canceled or getting dropped by your insurance company feels horrible and makes your mind start racing. What did I do? How can I get car insurance again? Who can help? Fear not; 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 entirely. But if you do 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 car insurance after a cancelation.
1. Pause & Find Out Why Your Policy Was Canceled
Take a deep breath and try to get to the bottom of your question: why was my car insurance canceled? There are many reasons why your auto insurance company dropped you. The most common reasons for insurance cancellation include:
- Non-payment. Did you forget to pay for 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 can cancel or choose not to renew a customer’s insurance for major traffic violations such as DUIs or violations that result in driver’s license suspension, or for making too many claims within a certain time span.
- No reason. No reason isn’t much of a reason, we know, but many states allow insurers the right to cancel your car insurance within the first sixty to ninety days of your policy (often called the “underwriting period”) without having to state a reason. Insurance companies will often do this if they find discrepancies in your policy application, so it pays to be honest when you first apply for a car insurance policy.
You might be able to fix the situation right away depending on the reason you were dropped. For example, if your insurance policy was canceled for non-payment, some insurance companies will allow you to pay the balance within a specific time frame and reinstate your policy. So, before you panic, pause, call your insurer, and see if you can reach a resolution.
2. Don’t Drive Without Car Insurance.
No matter where you live, driving without insurance or proof of financial responsibility is ageainst the law. Don’t do it! From Florida to Washington State, you’ll face a penalty of some kind for driving without the right coverage. Penalties vary by state, but can include:
- Driver’s license suspension
- Registration suspension
- Tickets for no insurance
- Possible jail time
- Civil and criminal penalties if you’re in an accident
- Steep fines
- Having to meet SR-22 (or similar) requirements for several years
Being notified that you’ve been dropped from your insurance can be highly stressful, as you’re not legally allowed to drive without it. While you work to get insurance again, take public transportation. Ride your bike. Listen to a podcast as you walk to work. Ask friends or family members for a ride! It may 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 above, always call your current insurer and see if you can resolve the issue first. But drivers who aren’t eligible for reinstatement can start shopping for new insurance options online, over the phone, or in a store. Make sure to have the following information handy to get a speedy, accurate quote.
- Personal info: Be ready to provide your full name, address, birth date, and marital status.
- Your current insurance status: Be prepared to answer questions about your current insurance status and explain your situation.
- Vehicle info: You’ll need to share the year, make, model and VIN number of the car(s) you want to insure.
- Driving history: Be ready to discuss your driving history honestly, even if it includes accidents or violations.
- Payment history: Insurers might want to know if you have made payments on time previously.
- Contact info: By providing your phone number or email, you can access your quote at a later time.
Remember, you want to find quality coverage, but you also can’t drive legally until you’re covered again. So, make sure to do your research and shop efficiently.
4. Prepare for Different Insurance Rates
Chances are, if you’ve been dropped due to non-payment, excessive claims, or multiple traffic violations, you’ll be considered a high-risk driver who faces higher insurance rates. But don’t 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 for you. If you’re having a hard time finding insurance after an accident, we’d love to help. Even if you’re just shopping around for new rates, we’ll work hard to get you discounts you deserve, coverage you can count on, and rates you can afford. Give us a call, stop by one of our stores, or visit our website for a free quote.