What does it mean if your insurance policy was cancelled?

On the other hand, canceling insurance means that your policy is canceled any time other than the renewal date. Cancellations can only happen for very specific reasons. Once you take out a policy, the insurance company usually has 60 days to decide not to offer you long-term coverage by issuing a cancellation. You may be able to resolve the situation right away depending on the reason you were kicked out.

For example, if your insurance policy was canceled for non-payment, some insurance companies will allow you to pay the balance within a specified time and reinstate your policy. So before you panic, pause, call your insurer and see if you can come up with a solution. Insurers can cancel policies or choose not to renew them at the end of the policy term. Non-renewal can occur after several accidents or after filing too many claims.

At the same time, more immediate cancellations can be due to serious problems, such as loss of driving privileges or insurance fraud. Fortunately, many insurers are still accepting customers who have had their policy canceled or not renewed, but who are prepared to pay a higher rate. Many major insurance companies accept customers whose previous insurer didn't renew their policy. If your car insurance company suspended you, it's still possible to get some type of insurance even after a serious violation, such as a DUI.

The most common reasons why auto insurance isn't renewed vary by state and insurer and include multiple accidents and too many insurance claims. Having the insurance company cancel your car insurance or having your insurance company cancel it is horrible and causes your mind to start racing. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy. Auto insurance companies can legally cancel a customer if it becomes riskier to insure them than when they first purchased their policy.

However, if you suddenly run out of coverage, we'll teach you what to do if your car insurance is canceled and what to do next, as well as your options for getting car insurance after a cancellation. In addition, having a lapse in auto insurance coverage between policies can mean more difficulty getting a new policy and higher rates when you do.