Car insurance companies can drop your insurance coverage for any reason

Car insurance companies can drop your insurance coverage for any reason

You just got a notice that your car insurance company is not renewing your policy. Can they do this? Yes, they can, but in most states, insurers must give you at least 30 days notice, in writing, before nonrenewal of your policy.

In California, the legal requirements state that an insurer must deliver a written notice of nonrenewal at least 30 days before the end date of the policy, or 20 days before if the reason for nonrenewal is a failure to pay. However,  they don’t need to give a valid reason for a nonrenewal or cancellation; if you ask for one, they are generally required to provide it.

Nonrenewal of a policy occurs when your insurer chooses not to renew your policy at the end of its term. While you can plead your case with your insurer if you feel that nonrenewal was unwarranted, chances are you’ll be getting new car insurance coverage from a new insurer.

Because your notice of nonrenewal will contain the date at which your policy will no longer cover you, a new policy has to be effect before then. In other words, you’ll need to start shopping for a new car insurance company to see which ones will offer good rates.

Cancellation of your car insurance is a much more serious issue vs. nonrenewal and can come with penalties.  

The most common reasons they would cancel your policy

Cancellation of car insurance usually involves problems that the insurer has with the customer in question. State laws usually dictate why your insurer can cancel your coverage. Some of the most common reasons why car insurance companies would cancel a policy include:

  • Traffic violations
  • Too many claims
  • Severe health issues
  • Several at-fault accidents
  • Missing premium payments
  • Drivers license suspended or revoked
  • No vehicle registration
  • Committing fraud by filing false claims

If you have a cancellation on your record, you can expect to face much higher rates when you start to shop for a new policy.

Getting the insurance coverage you need

Whether your car insurance policy has not been renewed or if it’s been cancelled, you still need coverage if you plan to keep driving.  Comparing car insurance quotes from as many companies as possible is the best way to find the rates that you can afford. But, it can become very frustrating as well as time-consuming calling insurers, getting quotes, and then comparing them to determine your best option.

It’s time to contact an independent insurance broker like Daniel Fraisse, top insurance broker in Los Angeles. Dan’s first concern is finding you the coverage that you need at rates that you can afford.  In the insurance business for 30 plus years, Dan Fraisse has formed relationships with many insurance carriers, both standard and non-standard.

From auto and health insurance to home and life insurance, Dan can get you covered. Call us to get your free insurance quotes.