If you think the cancellation of your car insurance policy is unfair or unlawful, and you can’t resolve it with the insurance company, you can contact your state department of insurance. If you think the insurer has misinformation, or the reason is a late payment, ask if you can resolve the issue before cancellation. If you receive a cancellation notice, you’ll want to deal with it immediately. A notice of cancellation for other reasons, like a driver’s license suspension, can generally range from 20 to 45 days, depending on the state.Cancellation for nonpayment typically requires 10 days notice of cancellation.The time frame for advance notice varies by state and the reason the policy is being canceled: How Do I Find Out If My Car Insurance is Canceled?Ī car insurance company is required to give you advance notification of cancellation, typically sent by mail or electronic delivery. Some states, such as New York and Oregon, allow credit information and/or your auto insurance score to be a reason for non-renewal by an auto insurer. Reasons for car insurance non-renewal can be similar to cancellation, such as nonpayment and misrepresentation on an application. This happens when a policy is due for renewal and the insurer decides not to continue it after the policy expiration date. Non-RenewalĪnother way to lose your auto insurance is through non-renewal. If you cause an accident while using your vehicle for a business, your claim could be denied. Your personal car insurance policy is intended only to cover you for personal vehicle use. If you use your car to drive for a rideshare company like Uber or Lyft and don’t tell your insurer, it might cancel your policy or deny a claim. If you use your car for work (aside from commuting to work), you likely need a commercial auto policy. For example, if you use your car to visit job sites or make deliveries. You Use Your Car for Business PurposesĪ personal car insurance policy generally doesn’t cover business use. Also, if your state requires inspection and you do not get your car inspected or it fails inspection, that may be grounds for cancellation. If your car has mechanical problems to the point it endangers public safety, your policy could be canceled. But you may receive a cancellation notice from your current insurer instead. The average rate increase after a DUI is 70%. If you or a regular driver on your policy is convicted of a DUI, DWI or OUI, your risk to car insurance companies skyrockets and so will your rates. If that certificate is not provided, your insurance company may cancel your policy. Health conditions like epilepsy and heart attacks can require a certificate from a physician testifying to your ability to drive safely. You Have a Medical Condition That Affects Your Ability To Drive Safely If you purposely fail to do so, your car insurance company could cancel your policy. If you file a claim, or someone else makes a claim against your insurance policy, you are expected to provide complete and accurate information. If they do drive, your policy could be canceled. If a regular driver on your policy has their driver’s license suspended, your car insurance company might require you exclude them from the policy, meaning they are no longer covered. If you have your license or registration revoked or suspended within the policy period, or often within 36 months before the notice of cancellation, your policy could be canceled. Your Driver’s License or Vehicle Registration Was Revoked or Suspended Failing to accurately report this information is often referred to as a “material misrepresentation” and may be cause for cancellation. Your car insurance company relies on several factors to set your rates, such as your vehicle’s “garaging” address, and who drives your car regularly. Here are other common reasons for car insurance cancellation: You Didn’t Fully Disclose Necessary Information in Your Auto Insurance Application The most common acceptable reason for cancellation is that you didn’t pay the premium on time. Common Reasons for Car Insurance CancellationĬar insurance can be canceled for a variety of reasons, often dictated by state laws. Higher risk results in higher insurance rates. Another unfortunate side effect of having your car insurance canceled is that the cancellation shows up on your record and causes other companies to see you as a higher risk. If you’re shopping for a new insurer, you may discover higher rates. If you can’t resolve whatever issue caused the cancellation, you’ll need to shop for a new insurance company. Getting a cancellation notice from your car insurance company usually means there is hassle headed your way.
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