My Auto Insurance Company Canceled My Policy, Now What?

Posted on Feb 23, 2016


You go to the mailbox and find that there is a letter from your auto insurance provider. The letter states that your policy has been canceled, and you are completely blindsided. You can’t help but wonder why your policy has been canceled, and you don’t know what you should do about it. Here is some information that can help you, should you find yourself in this situation.

Why an Insurance Company Can Cancel a Policy

An auto insurance provider cannot cancel a policy just because they feel like it. The only reason that they can cancel are stated in your policy, and these reasons are typically governed by state laws.

Some of the justified reasons why your insurance provider may cancel your policy include:

  • The policyholder failed to make agreed on premium payments..
  • The policyholder committed a serious fraud or misrepresentation
  • The policyholder’s license was suspended or revoked.
  • The policyholder was involved in an accident that he or she deliberately caused.

If your insurance company is planning on canceling your policy, they do need to provide you with advanced notice. In most states, that notice must be made at least 30 days before the policy is going to be terminated.

What To Do If Your Policy Is Going To Be Canceled

Receiving a notification that your policy is going to be canceled can be alarming, but there are things that you can do to properly handle the situation once you receive such a notification.

  • Bundle Your Policies. Do you have homeowner’s or renter’s insurance? If so, call the agency who provides your coverage and inquire about bundling your policy, adding your auto insurance to it.
  • Repair What Went Wrong. Whatever the reason is that your insurance was cancelled, make sure that you fix it. For example, if your insurance from your previous provider was canceled because you failed to make payments on time, make certain that all of the payments you make with your new agency are always on time.
  • Inquire about your Driving Record. Contact your state insurance department and ask for a copy of your driving record. Doing so will ensure that you are prepared to answer any questions that your prospective future insurance provider may ask.
  • Work quickly to obtain a new insurance policy. Some states charge a penalty if you don’t obtain new insurance coverage within a reasonable time.

While having your auto insurance policy canceled is certainly alarming, you can get coverage with a new provider and make sure that your policy with your new provider remains in good standing.

For a review of your existing auto policy or to inquire about switching to another provider, please contact Otterstedt Insurance Agency today at 201-227-1800.

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