What to Do if Your Car Insurance Drops You

Car insurance is one of those things that we don't really think about except when our policy renews, or we make a payment. It protects us when we need it the most and, for most drivers, doesn't require a lot of effort to maintain.

In fact, many policyholders maintain continuous coverage with the same insurance carrier for years on end and don't feel the desire to shop around for other options. However, some individuals find that their auto insurance company has dropped them from their policy, sometimes without much notice.

There are various reasons this could happen, and it's important to understand exactly why your insurance policy was canceled and what you need to do moving forward to ensure you aren't driving without coverage. Policyholders who are dropped sometimes think they have few options, but in reality, there are several actions you can take to obtain new auto insurance coverage. Ultimately, the reasons why your coverage was dropped will dictate the steps you take.

If you do find that you're on the hunt for cheap car insurance after being dropped by your carrier, head over to Insurify . You'll be able to compare insurance premiums across multiple companies at once and select the coverage that best meets your needs. Insurify helps take the guesswork out of the insurance industry and saves you both time and money, even if you have a less than amazing driving history.

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Why did my car insurance drop me?

Most policyholders don't give their car insurance policy much thought, assuming it will always be there no matter what. In reality, there is a wide range of factors that can lead to being dropped from your auto insurance policy. Some of the scenarios in which a driver loses their insurance are pretty straightforward. Other times, insurance companies can refuse to renew a policy or drop someone's coverage altogether for some less than common reasons. Let's take a closer look at what you need to know.

• Nonpayment of your premium: If you don't pay your cell phone or electricity bill, your service will eventually be shut off. Car insurance works in the same way, where if you do not pay your premium, you won't continue to be covered. Each insurance company works a bit differently when it comes to a policy cancellation, but many offer a grace period before sending out a notice of cancellation.
• Fraudulent behavior: Your car insurance company could drop your coverage if it finds out that you knowingly submitted incorrect information when you enrolled or if you file a false insurance claim. This type of fraud doesn't have to be elaborate for it to count—something as simple as not being truthful about the date of an accident or leaving out information relating to how a collision occurred can be treated as fraud. In these instances, a notice of nonrenewal might not be the worst consequence, as insurance fraud can be punished by strict penalties.
• High-risk driver behavior: Most policyholders know that insurance rates go up each time you're involved in an at-fault accident and that moving violations can also impact your premiums. Many people may not know that some people can be considered too high of a risk to the point where their insurance company drops them. Insurance companies may not want to place trust in you if you frequently receive traffic violations, speeding tickets, and DUIs or engage in reckless driving.
• Modifying your vehicle: When you enroll in coverage, your insurance carrier asks details about your car, including the year, make, model, and mileage. Insurance companies also like to know if your car has any special modifications that might alter the way it operates. If you make such changes without letting your carrier know, there's a chance that you could be dropped from your policy.
• Losing your license: Individuals with an extensive history of high-risk driving behavior might end up having their license suspended or completely revoked by the DMV. While it's not impossible to secure coverage for your vehicle even if you won't be driving it, insurance companies might cancel your policy or refuse to renew it if you've lost your driving ability.
• Medical concerns: It's not always your driving record or a lack of payment that could cause your insurance company to drop you. Some states actually allow insurance companies to cancel a policy due to someone's health. If your physician diagnoses you with a condition that could lead to a car accident, like epilepsy or certain heart issues, they could be obligated to notify the DMV. Eventually, your insurance carrier will be notified as well and could assess higher premiums or completely cancel your coverage.

If you lose your current insurance, it's not always due to something that's in your control. Your insurance agent may be going out of business, or state laws could have changed in such a way that your car isn't eligible for comprehensive coverage any longer. The insurance industry goes through changes like any other type of business, so keep in mind that losing your coverage isn't always a direct result of your driving history.

Once your car insurance has dropped you, take these steps

1. Take a moment to breathe.

Even when you know that getting dropped from your policy is on the horizon, it can be stressful to realize that you're no longer covered. Sometimes receiving a notice of cancellation can strike panic into your heart, but remember that you do have options. While obtaining a new policy should be high on your priority list, keep in mind that you shouldn't necessarily purchase the first option available to you.

2. Don't operate your vehicle.

Just like it's illegal to drive a car without a driver's license, all 50 states prohibit the operation of a motor vehicle that's uninsured. You might think that you can slide under the radar and only drive a little until you obtain a new policy, but it's not worth the risk for most people. Car accidents can happen in the blink of an eye, and if you're involved in one without being insured, you may be liable for thousands of dollars in repairs or medical costs.

3. Get ready to possibly spend more.

Depending on the reasons your car insurance was canceled, you might be in for a bit of a surprise when looking at car insurance rates. Safe drivers are typically eligible for a variety of discounts that help lower premium costs. But if you were dropped from your insurance due to a DWI, a fraudulent claim, or a lack of payment, these discounts might not be available anymore. Remember, even though you might have to pay higher rates for your new policy, it's essential to be honest on your insurance application.

4. Compare car insurance quotes online.

Even if you're facing a rate increase due to your driving history, car insurance doesn't have to cost you a fortune. Make sure to do some research instead of buying the first policy you come across and compare insurance costs and benefits using Insurify . In just a few minutes, you'll have a wealth of options at your fingertips and can enroll in the best policy to meet your driving and budgetary needs.

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FAQ: Dropped By Car Insurance

How many accidents can you have before your insurance drops you?

Insurance companies may not actually drop you if you file multiple claims in a short period of time, but there is a chance that you'll be facing a nonrenewal when your policy period ends. Drivers who are concerned about their accident history may want to explore policies that feature accident forgiveness options.

Will my car insurance drop me if I forget to pay my bill?

Most insurance carriers are sympathetic to a policyholder's oversight, so if you forget to pay your premium one month, make sure to contact your agent right away. Only after repeated months of nonpayment will your coverage likely get canceled.

Where can I compare new car insurance quotes online?

Whether your carrier dropped you due to your driving history or you couldn't afford your premiums, you'll definitely want to enroll in a new policy as soon as you can. If you need a quick and easy way to compare quotes online, head over to Insurify, where you can save time and money with just a few clicks.

Conclusion: How to get the best and cheapest car insurance

Getting dropped by your car insurance doesn't have to be a stressful event. No matter the reason for the change, you'll need a new policy to continue legally operating your vehicle. Rather than spend tons of time searching for auto insurance quotes and wondering which option is best for you, visit Insurify instead. Simply answer a few questions about your insurance needs, and you can compare auto insurance prices from multiple companies at once. Soon, you'll forget all about getting dropped from your former insurance company!

Score savings on car insurance with Insurify

Updated July 19, 2021

A former licensed insurance producer, Courtney Levin has been a freelance writer since 2016. She graduated from Sonoma State University with a degree in Communications and has been creating content for Insurify for nearly two years.

What to Do if Your Car Insurance Drops You

Source: https://insurify.com/blog/car-insurance/dropped-by-car-insurance/

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