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Can an Auto Insurance Company Drop You at Anytime

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					 Can an Auto Insurance Company
      Drop You at Anytime?




    An auto insurer must provide a valid reason for cancelling your coverage.
If you've had a few auto accidents that were your fault or were convicted of DUI, there's a good chance your auto insurance company will want
to part ways with you. Insurance companies generally cannot drop you without cause, and state insurance laws determine when an insurer is
permitted to cancel your coverage.



Reasons
      o                   If you've filed too many claims, your insurer may no longer consider you a profitable risk, so it may elect to terminate
            your coverage. If you've been convicted of a major driving-related offense such as DUI, your company will likely drop you as soon
            as is legally possible. If you've been found to have made misrepresentative statements on your application for coverage, your
            company may drop you if the misrepresentation is considered material. Of course, failure to make timely premium payments will
            also likely lead to termination.



Type
      o                  Depending on the reason for termination and the laws of your state, your insurer may either cancel on non-renew your
            policy. Cancellation typically occurs during the policy period, and may be the result of a current license suspension that the
            company becomes aware of through a claim investigation or a routine check of your motor vehicle report. Non-renewal occurs when
            your insurer decides not to continue to offer you coverage after your scheduled renewal date, often due to a high frequency of
            claims.



Proper Notice
      o                  Regardless of the reason for the termination of coverage, your insurer must provide you with sufficient notice of
            cancellation as determined by the laws of your state. Your coverage will continue for a certain number of days, which could be 15,
            30 or 60 depending on the circumstances. This gives you time to seek coverage elsewhere. In the case of a late premium payment,
            the company may give you until a certain date to make the payment so you can maintain your coverage.



Options
      o                   Cancellation often leads to the need to find new coverage, which will likely be more expensive because of the problems
            that led to your termination. If you're a long-term policyholder, see if your agent is willing to contact the company's underwriting
            department on your behalf for a possible remedy. If you feel the cancellation was unjust, you can contact your state's insurance
            department by following the appeal process included in your notice of cancellation.

				
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posted:4/3/2011
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