Did you know that insurance takes the form of a contract between you and the company that agrees to insure you? Well it does, so you need to be clear what your rights and obligations are. Breaching the contact, consciously or unconsciously, can lead to unpleasant consequences.
When you first obtain auto insurance there is a period of 60 days in some states during which the insurance company can run checks on you to verify the information you supplied. If there is any serious discrepancy revealed, believe it or not, the insurance company can cancel your policy without explanation. It is clear that being completely honest about anything that may impact your insurance is essential.
At any time the insurer can cancel your insurance with due cause, but there is an obligation to inform you in writing from 10-45 days in advance depending on the reason for the cancellation.
Also, you won't lose your auto insurance just because the insurer doesn't like the color of your car. There has to be a significant reason and you have the right to be informed of that reason after that initial 60 day grace period. So what might you do to earn the ire of the insurer?
Unsurprisingly, the physical condition of the vehicle could cause it to be rejected for insurance purposes. This can be because it has failed safety checks or because it has been altered considerably. So take care when investing your cash in customizing that much loved vehicle. It could turn into a beautiful liability.
Although you are paying auto insurance so that you will be covered in the event of an accident, too many accidents - especially at-fault accidents - will lead the insurer to assess you as too great a risk. And, just like that, your auto insurance gets cancelled.
In some states, three accidents per year, whether you are at fault or not, and it is game over for you and that insurance company. I am not surprised that you find this unfair. No one expects their insurer to punish them for the existence of other bad drivers on the roads. Make your voice heard.
But sometimes, it is possible to see that the insurer has a point.
The most obvious reason to have your insurance cancelled is not paying your bill. Also, if you or a family member has their driver's license revoked, the insurer is within their rights to cancel the policy. Sometimes it is possible to negotiate so that only the driver who has lost the right to drive is no longer insured. Being charged with drunken driving (DUI) is one reason for the cancellation of a driver's license, and, should the insurer find out about this, the cancellation of the auto insurance.
Convictions of various kinds can leave you uninsured, for example being convicted of a felony offense. Serious convictions involving criminal negligence and injury or death when in control of a vehicle make you an unwanted risk in the eyes of auto insurers.
It is all about risk with insurers, so take care not to become an unwanted risk and you will be able to retain your auto insurance.