Loss of Auto Insurance Coverage

Loss of Auto Insurance Coverage

There are several reasons you can lose your auto insurance coverage. Maybe you've had a lot of accidents - or maybe you've fallen behind in paying your premium. Below are the answers to some common questions about losing your auto insurance.

Why can my policy be canceled?

1. You do not pay the premium.
2. Your driver's license has been revoked or suspended. This may also apply even if the revoked or suspended license belongs to a family member or other person who frequently drives your car.
3. During an initial period (typically 60 days) from the time the policy goes into effect, the company may notify you that they do not intend to continue the policy.

I was told my auto insurance policy will be a non-renewal. Why?

Possible reasons include:

1. The policy is covering a vehicle being operated by someone in your household who is not eligible for coverage
2. The policy is covering a vehicle that is being operated by a person who suffers from a physical or mental impairment that affects that person's ability to safely operate the vehicle.
3. Too many traffic violations.
4. Conviction for drunken driving.
5. Insurance company is no longer operating in your state.

What if I've been non-renewed or canceled and can't find other insurance?
Since auto insurance is required by law, all states have some form of assigned risk coverage for people who can't get an insurance company to cover them. The premiums will probably be high, but acceptance is guaranteed. Check with an insurance agent or ask your state insurance department about how to get assigned risk coverage.