- What happens if your insurance gets canceled for non-payment?
- What to do when your car insurance company drops you
- Can a car insurance company drop you without notice?
- Why would a car insurance company drop you?
- How long does car insurance last after cancellation?
- How to get car insurance after being dropped
- Frequently asked questions
What happens if your insurance gets canceled for non-payment?
If your insurance gets canceled for non-payment, you can probably work with your insurer to pay what’s owed and get your policy back on track.
“First, you will need to pay any premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. you owe to the insurance carrierAn insurance carrier is the company that provides your car insurance policy and pays claims.,” says Patrick O’Neil, president of E.J. O’Neil Insurance in Chicopee, Massachusetts.
Call right away to see if this is an option. “If you are less than 30 days after a policy is canceled for non-payment, there is a chance your insurance carrier will reinstate the policy,” he says.
It’s a good idea to set up automatic payments so you don’t miss any future bills. Or, ask about paid-in-full discounts. Some insurance companies offer a discount if you pay the entire premium in full upfront.
If your insurer won't work with you – for instance, if you’ve had multiple episodes of non-payment – it’s time to shop around for a new carrier. But make sure to settle any outstanding debts with your current insurer first, O’Neil says.
Remember, driving without insurance is illegal in just about every state. Don’t get back on the road until you’ve confirmed with your insurance company that your coverage is active again.
What to do when your car insurance company drops you
If your insurance company drops you, follow these steps to get your insurance back on track:
- Call your insurance company right away to find out why it was canceled.
- Ask if there is anything you can do with your current insurer to reactivate your insurance
such as paying money owed or taking a defensive driving course.
- If your reason for being canceled is due to a DUI conviction or multiple accidents, start shopping around for new coverage.
- You may need to look into high-risk insurance
- Don’t wait. Driving without insurance has serious consequences
Can a car insurance company drop you without notice?
By law, car insurance companies must give you notice before canceling your policy. How long in advance depends on state insurance regulations and the reason for the cancellation. This notice could range from 10 to 60 days, which typically gives you enough time to either work things out with your current insurer or find new coverage.Â
For example, the state of Illinois requires that cancellation notices for non-payment be mailed 10 days before the cancellation and notices for other reasons be mailed 30 days before. In Massachusetts, the insurance company must give the insured notice 20 days before a proposed cancellation.
Why would a car insurance company drop you?
O’Neil says some reasons a company might cancel your insurance include filing excessive claims or because your driver's license or vehicle registration has expired. A car insurance company will drop you if your premiums are not paid. There are many other reasons they could drop you, however. The most common reason, besides non-payment, is that you’ve become too great a risk. Changes in risk can include but are not limited to:
- You got a DUI conviction
- You had too many accidents
- You filed too many claims
- You lost your license/driving privileges
- You altered your vehicle in ways to make it riskier to insure
An insurer can also cancel your policy if it finds out you lied on your application or committed some other form of insurance fraud.
“If your policy gets canceled or non-renewed for claims history, the only option you have is to shop for new insurance,” O’Neil says. You may even have to look into a company that specializes in high-risk coverage.
“If you are canceled for license or registration issues, you need to fix those issued first before being considered for reinstatement,” he says. For instance, your insurer may reinstate your coverage if you agree to take a traffic safety course that restores your license.
PEOPLE ASK
Can I reinstate my car insurance after cancellation?
Sometimes, if it was canceled for non-payment, your insurer may let you reinstate it after you pay any money owed. If your license is suspended, regaining your driving privileges and taking a driving course may convince your insurer to take you back.
How long does car insurance last after cancellation?
If your insurance company sends you a letter saying it is canceling your coverage, the notice will include the date that the cancellation goes into effect. Each state has a different time frame for how much notice insurers must provide you.Â
For instance, you may get a notice 10, 20, or 60 days before your coverage ends. State law usually allows a shorter cancellation period for non-payment, or for misrepresentation or fraud, and a longer period if it’s due to an increase in risk.
If you have any confusion, call your carrier to clarify. You don’t want to be caught driving without insurance, as hefty fines and penalties may apply.
PEOPLE ASK
Is it hard to get car insurance after being canceled?
It can be. It depends on why your insurance was canceled. If it was for non-payment, that’s often an easy fix. If it was canceled for multiple accidents or a DUI, you’ll probably have to look into high-risk insurance.
How to get car insurance after being dropped
After you’ve been dropped by your current insurer, start shopping around immediately. You can use an online car insurance calculator, which is a useful tool that only requires a few pieces of key information to get you started. Or, find a local agent to shop around for you.Â
If you need high-risk insurance because you have multiple accidents or a serious moving violation such as a DUI, look into high-risk insurers. Unfortunately, your premiums will be higher.
You can look into reducing your costs by taking defensive driving courses, raising your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim., and asking about any available discounts.Â
Frequently asked questions
Do insurance companies check if you had insurance canceled?
Insurance companies share claims history and other information, and they have access to your driving record. If you shop around to find a new policy, you will be asked a series of questions, including about your past insurance history. If you don’t answer truthfully, your new insurance could be canceled.
Can an insurance company drop you for no reason?
No. Insurance companies must provide a reason for the cancellation. Occasionally, an insurer can drop you for reasons beyond your control, such as an insurer leaving the state or not writing any new policies.