Many policyholders maintain coverage with the same insurer for years without feeling the need to shop around for better options. While there’s nothing wrong with this, what happens when your carrier drops you from your policy without much notice?
First, it’s vital to understand exactly why your car insurance was cancelled to know what you need to do moving forward to get the right coverage.
Why your car insurance dropped you
There’s a wide range of factors that can cause your insurer to drop you. These include:
1. Non-payment of your premium
Car insurance works in the same way as your electricity or cell phone bill. If you don’t pay it, you’re cut off. Some insurers offer a grace period for payment but continued delays will result in carriers cancelling your policy.
2. Fraudulent behaviour
Submitting false information when enrolling for a policy or filing for a claim is frowned upon by insurance companies. The fraud doesn’t have to be elaborate to count. Simply leaving out essential information can lead to policy cancellation.
3. Modifying your car
Making changes to your vehicle, whether functional or cosmetic, without informing your insurer can result in them dropping you.
4. High-risk driver behaviour
If you’re always involved in traffic violations and road accidents, your insurer might drop you as they consider you too high a risk to cover.
What to do after your car insurance drops you
Being dropped from an insurance policy isn’t the end of the road because you do have options. However, never purchase the first option available to you. You may end up getting inadequate coverage or costly premiums.
Instead, compare insurance costs and benefits from different providers to find one that meets your budgetary and driving needs. Don’t operate your vehicle during this time, as you’ll have to pay for damages out of pocket if you get into an accident.
Additionally, be honest on your insurance application as to why you were dropped from coverage. This ensures you can find the best rates and discounts.
Are you ready to find your new insurance provider? If so, browse our site to compare insurance quotes from various carriers and comprehensive auto insurance today.