What Can You Do if Your Car Insurance Gets Canceled?

What Can You Do if Your Car Insurance Gets Canceled?

Cancellation of your car insurance can come as an unpleasant surprise. From non-payment of premiums to insurance frauds, there may be several reasons why your insurer decided to cancel your insurance. Yet, here’s what you need to know and do when your car insurance gets canceled.

When Your Car Gets Insurance Cancelled

Speak with your insurer to figure out why your policy has been canceled. If you just signed up, the company does have a 60-day window to cancel your policy. Generally, your policy may be canceled because you didn’t pay your premium, your driver’s license was suspended, or there was a red flag on your application.

In the aftermath of your policy getting canceled, take some time to figure out your next move. The insurance company should notify you ahead of time about the cancelation so that you will have time to prepare. You have the option to inquire about being reinstated. In most cases, it’s better to move on and start looking for coverage somewhere else.

Differences Between Cancellation and Non-Renewal

There is a difference between a company canceling your policy and deciding not to renew it. Remember that insurance policies are a form of a contract. Once the contract expires, the company may decide that it’s in their best interest to not offer you another one. If you have a poor driving record during the year, your policy will likely not be renewed. Again, as previously stated, companies generally have a 30-60 day window when they can decide to cancel your policy. If you truly feel that you are being treated unfairly, you can contact your state insurance department.

Future Repercussions of Cancellation

If your car insurance is canceled, it may make things more difficult in the future. Your next policy may be substantially more expensive. Other insurance companies may see you as a high-risk driver. If you are unable to find coverage, consult with your state’s assigned risk program. Make sure that you are transparent with the next company that offers you coverage regarding the reasons why car insurance be canceled.

Having your car insurance canceled is a setback. However, it is not the end. You can bounce back and eventually find coverage.  If you need more-in-depth information on insurance, contact the experts at Steve Wilk Insurance today. You may also visit our office at 310 S Main Street, Suite C, Lombard, IL 60148.