What Do I Do If My Insurance Tells Me My Insurance Is Revoked After an Accident

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					What Do I Do If My Insurance Tells Me My Insurance Is
            Revoked After an Accident?
Although it's often assumed that companies that sell auto insurance are obligated to provide coverage for the full life of the policy, most policies
include clauses that allow the insurance company to cancel the policy prematurely under certain conditions. Often, a company will be allowed to
revoke the policy in the event of a serious accident, particularly one in which the policy holder was negligent. Individuals who have their policy
canceled can take several actions to get back on the road.

Legal Advice
      o                 After an individual's auto insurance has been canceled, the individual may wish to determine whether the cancellation
            was indeed legal. According to the website CarJunky.com, states have different laws regarding when and how an insurance
            company can cancel its policies. Generally, a company must provide notification to the policy holder before canceling the policy. An
            attorney experienced in insurance law will be able to provide legal advice on whether the actions of the company conform to the law.

      o                   Whether the cancellation was legal or illegal, the individual can attempt to have the policy reinstated with the insurance.
            If the cancellation was illegal, he may be able to have the policy reinstated under its former terms. However, if the cancellation was
            legal, the individual can expect to have the policy restated under different terms. In the event of an accident, the insurance company
            will usually require the a policy holder to pay higher premiums or deny them certain types of coverage.

Finding a New Company
      o                  If an individual's former insurance company will not offer him a new policy, he may be able to purchase insurance from
            a new company. However, because information about accidents is available to all insurance companies, a new insurer will likely be
            aware of the accident, too. This means that the individual will likely be required to pay higher premiums to secure a policy. In
            addition, some insurance companies may also deny the individual coverage.

Joining Someone Else's Policy
      o                  In some cases, it can be cheaper for a person who has difficulty securing insurance to be added to another person's
            existing auto insurance policy. Generally, adding a new driver onto an existing policy will require the policy holder to pay higher
            premiums, particularly if he is adding a driver who has recently been in an accident. An individual may also only be allowed to be
            added to the policy of a relative.

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