Car insurancecosts keep going up, with drivers seeing a20.6% price increasefrom February 2023 to February 2024.
So what can you do about canceled car insurance?
It can happen because of several other circumstances.
If it does, though, its important to understand your options.
4 Reasons for Canceled Car Insurance
you’re able to experience canceled car insurance any time.
Carrier cancellations at renewal can be driven by two actions, Allen said.
Midterm cancellations, on the other hand, most often happen because of the policyholder.
Here are some reasons you might receive a cancellation notice.
High-Risk Policyholder
Insurers are in business to make money.
Too many high-dollar claims can wipe out earnings and put an insurance company out of business.
Companies seeing you as a risk may make them drop you.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
For this reason, the insurer can drop them as a customer.
Non-Payment
Its likely no surprise that if you dont pay your premiums, your insurer will cancel you.
The same would happen if you didnt pay your cable or electricity bill.
Those accidents and speeding tickets will be disclosed when you quote with a new insurance carrier.
Even cancellation for non-pay history is available to carriers that share information with data aggregators.
Change in Eligibility
Your premiums and coverage are based on the information you provided when you purchased the policy.
If one or more of those circumstances change, you might run into canceled car insurance.
Policyholder Fraud
Chances are you dont think of yourself as someone who would commit fraud against an insurance company.
This may include driving for food delivery and rideshare services.
However, there are some things you might do to reduce your risk.
While thats the extreme, the truth is, claims can put you in that dreaded high-risk category.
Scott Lieberman, founder ofTouchdown Money, advises keeping claims as infrequent as possible.
When you do make those changes, Kapur suggests being open with your insurer about it.
She also recommends taking a proactive approach to reducing your perceived risk.
Kapur suggests setting up automatic payments to keep that from happening.
Handling Cancellations
Sometimes, despite your best efforts, you get that dreaded cancellation notice.
When that happens, its time to look into your insurers dispute process.
Whatever you do, though, its crucial to avoid going too long without a policy in place.
Make every attempt to not have a lapse period on your insurance history.
Canceled car insurance can feel scary, but quick action can make a difference.
Understanding the reason for cancellation is the best first step.
Once youve achieved that, you’re able to start to repair the damage.
Stephanie Faris is a professional finance writer with more than a decade of experience.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
