Can my auto insurance drop me after a claim?

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Things to remember...

  • Car insurance companies can drop drivers after they file a claim, providing they have a valid reason
  • The insurance company must provide you with a letter prior to the cancellation of your policy
  • The letter must explain the reason for the cancellation and state a policy end date
  • To avoid a gap in your auto insurance coverage, you should use a comparison tool to quickly shop for a new policy

If you need to file a car insurance claim or have filed a car insurance claim, you may be wondering if your auto insurance provider can drop you. The short answer is that it depends on many factors.

While your car insurance company can cancel your policy, they are more likely to increase your rates rather than drop you.

If you are expressly worried about the status of your current insurance policy, you can use a comparison tool to shop for a new policy and potentially better premiums.

This will help you determine if you need a new policy and help prepare you in case your car insurance company does cancel you.

Compare car insurance quotes today to see how much you could save. Enter your zip code above to get started for FREE!

Know When to File a Claim

Insurance companies do not like it when drivers file frequent car accident claims. Knowing when to file can help you avoid being canceled for becoming too high of a risk to insure.

  • You are the only car or person involved and you only damaged your property – You do not have to file a claim if only your property and your vehicle were damaged.
  • The damage is less than your deductible – Your insurance company won’t give you any money for the repairs if the damage is less than your deductible, so it is pointless to file a claim unless it involved someone else’s property.
  • Your car was parked when it was damaged – If you weren’t driving your car and lightening struck it or something fell on it or it was hit by another vehicle, go ahead and file a claim. The damage wasn’t your fault.
  • You were involved in an accident with another vehicle – You are obligated to notify your insurance company and file a claim.

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Reasons Car Insurance Companies Drop Drivers

In general, car insurance companies can opt to cancel an insurance policy if you’ve committed any of the following infractions.

  • You’ve filed too many claims over a certain period of time – Car insurance companies tend to have a threshold for accidents and incidents. If you get into more accidents than your car insurance company allows, they may determine that you are not worth the future risk.
  • Your car accident pushed you into the high-risk category – If you’ve gotten numerous speeding tickets or driving infractions over the last couple years then get into a car accident, you may be deemed a high-risk driver and your insurance company may not be able to write high-risk policies.
  • You were impaired at the time of the accident – If you were drinking and driving or under the influence of drugs at the time of the accident, your insurance company may cancel your coverage.

What happens when a car insurance company decides to cancel your policy?

 

If a car insurance company wants to cancel your insurance policy, they must follow certain steps. Otherwise, you may have a reason to report them to your state’s insurance department.

Your car insurance company must send you a letter explaining that they have made the decision to cancel your insurance policy, and they must provide one or more reasons. The letter must also state the cancellation date.

If your car insurance company cancels your policy without notifying you or they do not provide a reason, they could be required by law to reinstate your policy. However, it depends on why your policy was canceled.

If you failed to pay the premiums or were convicted of a crime while driving, you may not have any recourse of action.

If you cannot get your policy reinstated, you can use a comparison tool to quickly find and purchase a new auto insurance policy and avoid a gap in your car insurance coverage.

Avoiding a Gap in Car Insurance Coverage After Receiving a Cancellation Notice

If your car insurance company sent you a cancellation notice, look for the cancellation date. You will want to have a new insurance policy before that date.

The quickest way to obtain a new policy is by using a comparison tool. Car insurance comparison tools take your information and your car insurance needs and compare them to all the available policies in your local area.

The tool then returns the best results, which will include:

  • The insurance carrier
  • The type of policy
  • The price

You can also read the details of the policy before you make a decision. Once you have determined which policy would best meet your needs and your budget, you can purchase it directly online.

What are you waiting for? Enter your zip code below and start comparing affordable car insurance qutoes today!

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Compare quotes from the top auto insurance companies and save!

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