What to Do When You're Dropped From Your Insurance
It’s never a good feeling, nor a good sign, when you find out that you’re being dropped from your auto insurance. There are a number of reasons why an insurance company would choose to cancel or renew a customer’s policy, and fortunately, an equal number of ways to remedy the situation.
First and foremost, stop and take a deep breath before you tackle the problem – the great news is, you have options! Before you start making frantic phone calls, take some time to learn more about your situation. There are a number of reasons why your insurance company might drop you:
The most common cause of cancellation by the insurance company is nonpayment of your premiums. Some carriers will allow you to pay your balance within a certain time frame to be reinstated.
Many insurers have the right to cancel your insurance within the first sixty days of your policy without having to state a reason. Most often insurance companies will do this if they find discrepancies in your policy application, so it pays to be honest from the start.
Insurance companies can cancel a customer's insurance for major traffic violations such as DUIs or violations that result in license suspension, or for making too many claims on their insurance within a certain time span.
Being notified that you’ve been dropped from your insurance can be highly stressful, as you’re not legally allowed to drive without it. Once you know why you’ve been dropped, it’s time to do some research and insurance shopping to get you back on the road as soon as possible. Although you can choose to appeal the cancellation of your policy, it’s often a long process. Reinstating your policy after being dropped almost surely means that you’ll be reinstating your policy at a higher premium.
Chances are, if you’ve been dropped due to nonpayment or excessive violations and claims, you’ll be considered a high-risk customer. This makes it difficult to find insurance with major insurance companies, especially at a reasonable premium. High-risk customers can find what they need with non-standard auto insurance companies like Direct General Auto, who have flexible plans and reasonable prices for people who have less-than-perfect driving records or are having a hard time finding insurance at a standard or preferred rate. For drivers having a hard time finding insurance after an accident, and who need a company that issues SR22 documents, non-standard auto insurance carriers can usually offer the insurance you need at competitive rates.
Once you know exactly what type of insurance you need, it’s time to get shopping. Online insurance companies like Direct General Auto offer a simple, straightforward, and free tool that will deliver you a quote for a new policy immediately. Take advantage of this free quote to simplify your shopping process, get insurance, and get yourself back on the road!