Losing your auto insurance can be hard to deal with, but it does happen, so you need to be prepared. Non-renewals and cancellations are the two most common ways an insurance provider will let a person go. Just because one insurance company cancels you, it doesn’t mean that you won’t be able to get insurance anywhere else. There are agencies that will provide coverage to a high-risk driver. You will just have to be prepared for the cost and a few new stipulations.
Find Out Why You Got Canceled
Ask your insurance agent why they are letting you go. Most release letters can be a little vague, leaving you wondering what you did and if there was something you could have done to correct the situation. The most common causes of being dropped by your insurance company are non-payment of premiums and an excessive number of citations or accidents. Having your license suspended is also a common reason. Individuals who are convicted of DUIs may also lose their insurance as well as their drivers’ license.
Start Looking for Other Insurance
You will normally receive a cancellation or non-renewal letter 20 to 30 days before your coverage ends. Don’t wait until the last minute to go shopping for new insurance. It will cost you more to start a new policy if your old one has already expired. Whether you look online or visit an office, you need to find a policy you like and have it in place before your old coverage ends. With over two full weeks to do your looking, you should be able to have a policy in place long before your old one expires.
Higher Risk, Higher Premiums
As soon as one insurance company lets you go, you quickly become a “high-risk” driver. High-risk usually means that you will have to pay a much higher premium for the same type of policy you lost. Depending on why you lost your policy, you may have to meet specific eligibility requirements to get a new policy. This can mean taking a defensive driving course or having a breathalyzer/ignition device put on your car. You may also have to agree to a higher deductible in addition to higher-than-normal premiums.
State Your Case
There are instances when a non-renewal or cancellation is the result of a simple misunderstanding. If you have questions or concerns, your first step should be talking to your insurance company to find out what is going on. Understanding what the issue is will help you figure out how to solve it so that your insurance remains in place and you are always fully covered. It may be as simple as paying a fine on an old traffic ticket or taking a defensive driving course.
Don’t let a non-renewal or cancellation letter ruin your day. If you need answers to any other insurance-related questions, contact the experts at Scautub Agency in Scotia, New York today. We will be happy to discuss all your insurance coverage needs.