Best Car Insurance Companies That Don’t Report to the DMV When They Cancel a Customer’s Policy (2021)

When you buy with car insurance companies that report to the DMV when they cancel a customer's policy, your insurance information is uploaded to an electronic database that keeps track of legal coverage levels and vehicle registrations. All auto insurance companies are required to report cancellations within 30 days, but drivers will have up to 20 days to find new coverage before a policy is terminated.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Dec 1, 2021

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Things to Remember

  • State laws require insurance companies to report canceled policies
  • If your auto insurance company cancels your policy, it must give you a grace period of 10-20 days to find new coverage
  • Insurance providers must update the DMV within 30 days of canceling a policy

Car insurance companies that report to the DMV when they cancel a customer’s policy are standard in the industry. Providers are typically required to report a canceled policy to the local DMV within 30 days, but insurance cancellation laws by state can vary.

The good news is that state laws prohibit companies from canceling your policy without reason or warning. Laws require that drivers be notified and given at least 10 days to find new coverage.

Driving without insurance is illegal. If your auto insurance company canceled your policy for non-payment, there is a grace period to find new coverage or make a payment.

Keep reading to learn what to do with a canceled auto insurance policy and why you’re unlikely to find auto insurance companies that don’t report to the DMV when they cancel a customer’s policy.

Need to buy auto insurance after a cancelation? Enter your ZIP code above to start comparing free auto insurance quotes from local companies near you.

Are there affordable auto insurance companies that don’t report to the DMV when they cancel a customer’s policy?

The answer is no. All insurance companies have to submit drivers’ insurance information to their local departments of motor vehicles.

Your insurance record tracks the amount of coverage you carry, how many claims you have filed in the past, and more serious violations, including fraud.

You must show proof of insurance in order to obtain a driver’s license and register a vehicle. The information shared by insurance companies that do report to the DMV when they cancel a customer’s policy is on the public record.

While insurance laws require insurance companies to alert the DMV when they cancel a policy, these laws also protect drivers from losing coverage without their knowledge.

A cancelation notice is sent to you clearly stating why and when your coverage will end.

Why do auto insurance companies report to the DMV when they cancel a policy?

Nearly every state requires minimum levels of liability auto insurance. State insurance laws require providers to submit coverage details to the DMV to track residents’ eligibility to drive.

An electronic database contains this insurance information. This system tracks whether or not drivers are carrying the legal levels of liability coverage.

Whenever you cancel or change your policy, the insurance company updates this information and the DMV receives it. Drivers and insurers can access driving and insurance profiles through LexisNexis, and it’s free for drivers to request their own records once every year.

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What happens when my auto insurance company cancels my policy?

Car insurance companies that report to the DMV when they cancel a customer’s policy can terminate policies at any time. However, auto insurance laws regulate cancelations.

For example, a provider must tell you why it is denying you coverage or canceling your policy before the termination goes into effect.

Even if you miss a payment, your provider must notify you of the cancelation before terminating your coverage.

If you receive a cancelation notice from your auto insurance company, you will have 10 to 20 days to find new coverage.

When you get a cancellation notice, it’s important to start shopping for new car insurance immediately. Driving without insurance is one of the many factors that affect auto insurance rates, and you will see higher auto insurance quotes if you risk driving without coverage.

What happens if my auto insurance company cancels my policy for non-payment?

Your insurance company will alert you to the date that your coverage will end. Depending on the company, you may be able to reinstate your coverage after paying the bill.

However, if your provider raises your rates due to non-payment, you may find better quotes shopping around online. To find cheap auto insurance rates, compare quotes from at least three different companies near you.

Get started right now with our comparison tool below. Enter your ZIP code now to get free auto insurance quotes from local companies near you.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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