What Should You do if Your Car Insurance is Cancelled? - BST Insurance

March 29, 2019 by Chris Bibey

If your car insurance company cancels your policy, it’s important to take immediate action in an attempt to get back on the road as soon as possible. The longer you wait the more difficult it becomes to figure out what went wrong and how to devise a plan for securing coverage once again.

In the past, we discussed some of the most common reasons for a car insurance cancellation, which include:

•    Neglecting to pay your premium in full and on time
•    Distracted driving conviction
•    Too many at-fault accidents
•    Too many moving violations
•    Misrepresentation, such as lying about your driving history

Avoiding these things will go a long way in helping prevent a cancellation. However, no matter how hard you try, you could run into trouble at some point.

Here are three steps to take if your car insurance is cancelled:

1. Find Out Why

This is top priority, as you need to have a full understanding of what went wrong. Review any paperwork from your insurer and contact your agent to discuss your situation.

You may not like what you hear, but getting to the bottom of the problem is an absolute must.

2. Take Action

The action you take depends largely on the reasons your policy was cancelled.

For example, if you missed a payment, ask your agent if making the payment immediately will help reinstate your policy.

If your cancellation was the result of something more serious, such as too many moving violations, look into any steps you can take to improve your record and show that you’re interested in being a safer driver.

3. Contact a Broker

Just because one car insurance company cancels your policy doesn’t mean you’re out of luck across the board. You may find that another company is willing to give you a try, even though the premium may be higher than what you’re used to paying.

By contacting a broker, it won’t be long before you have a clear idea of the companies in your area that are willing to do business with you. From there, you can work with your broker to decide which company is best and how much coverage you require.

Final Thoughts

It’s in your best interest to do whatever you can to keep your car insurance policy in good standing.

If your coverage is cancelled, follow the steps above to get back on track. The sooner you secure a policy the sooner you can get back behind the wheel.

FAQ

What types of violations most drivers want to avoid to prevent insurance cancellation?

Automotive insurance policy violations are the types of things that most drivers want to avoid. The typical examples of policy violations are at-fault accidents, tickets, DUIs, or other violations. Your insurance can also be cancelled if you’ve given false information about yourself or your vehicle when applying for an insurance policy.

Do you have to declare that your car insurance was cancelled?

Yes, insurance cancellation is something you’ll have to declare to every new insurance provider. A cancelled policy serves as a red flag, and you may struggle to find a mainstream insurance provider to cover you. Alternatively, you may end up paying a lot more for your policy.

Does cancelling insurance affect credit rating?

Cancelling your car insurance policy shouldn't affect your credit score, whether you pay monthly or annually, as long as you cancel it properly. If you don't cancel your policy correctly, you'll get a bunch of missed payments on your credit record. And because pay-monthly car insurance is a credit agreement, it could be bad news for your credit score.