Can Car Insurance Cancel My Policy?

Getting a notice in the mail that your insurance policy has been canceled can put you in a panic. Why did they cancel the policy? Can it be reinstated? Are they even legally able to do that?! Plus, having a cancellation of your record can lead to higher rates when you shop for a new policy. You’ll be seen as “risky” and will be charged as such.

The injury attorneys at Mickey Keenan P.A. discuss why your insurance policy might have been canceled, and what steps to take next. Scroll down to learn more…

Why Was My Policy Cancelled?

Car insurance can be canceled for a variety of reasons, and these reasons are often dictated by state law. The number one cause of cancellation at any time is that you didn’t pay your premium on time.

If you are having trouble paying your car insurance, don’t avoid it! Contact your auto insurance company to find out if there are any options such as extended grace periods, payment plans, or putting a hold on your cancellation. Although we’re not insurance agents, we see it all too often that people drop their uninsured motorist (UM) coverage to save a few bucks. In the case of a crash, however, there will be little you can do to make sure all of your needs are covered.

Common Reasons Why Car Insurance Gets Canceled

You misrepresented necessary information on your application, such as the garaging address of your vehicle, or who drives the vehicle regularly.
You have too many moving traffic violations or “at-fault” accidents.
Your driver’s license was revoked or suspended.
You made a fraudulent claim.
You have a medical condition that affects your ability to safely use a vehicle. These conditions include epilepsy, and sometimes heart attack.
You were convicted of a crime like a DUI or forfeited bail for certain offenses.
Your vehicle isn’t safe to drive, or your vehicle failed an inspection.
You use your car for business purposes which is not covered under a personal auto policy.
If you drive for a rideshare like Uber or Lyft and don’t tell your insurance company, they might cancel your policy.

Cancellation Vs. Non-Renewal

Sometimes you can lose your auto insurance through non-renewal. This happens when your policy is up for renewal, but the insurer decides not to renew it for another term. Reasons for non-renewal are similar to those of cancellation, such as nonpayment, or misrepresentation.

How Do I Know That My Insurance is Canceled?

Your insurance company is required to give you advance notice of cancellation, and they typically send these notifications in the mail or email.

The time frame for advance notice will vary by state and the reason for cancellation may vary. Cancellation for nonpayment requires 10 days’ notice before cancellation, but a notice of cancellation for say a driver’s license suspension generally is 20-45 days, depending on your state. If you have received a cancellation notice, deal with it immediately.

If you believe that the cancellation of your car insurance policy is unlawful or unfair, and you are unable to resolve it with your insurance company, you can contact your state department of insurance. They will process complaints against insurers instead of the Better Business Bureau. If they review your policy and notice a pattern of unfair cancellations, they might take action against the insurer, and enforce fines against them.

What Happens If My Car Insurance is Canceled?

After your insurance company cancels your policy, they are required to notify the state department of motor vehicles, and if you don’t secure a new insurance policy, they can suspend your license, or require you to turn in your car’s tags.

Driving a vehicle without insurance is illegal in all states except New Hampshire and Virginia, and could result in severe fines, penalties, and even jail time in some circumstances.

Can I Drive Without Car Insurance?

If you were to cause an accident while driving without insurance, you could be responsible for any damages and costly medical bills. If you are caught driving without insurance in Florida, you can face license and car registration suspension, and a $150 reinstatement fee.

Bottom line: don’t drive uninsured. People who drive without car insurance end up costing everyone else which is why it is important to carry uninsured motorist coverage, especially in Florida!

Key Takeaways

It is imperative for you as a driver to have insurance when you are out driving on the road.

Your policy can be canceled for a variety of reasons, but the number one reason is for nonpayment
You may have to pay a higher rate after your policy is canceled
Your insurance company will notify you before canceling your policy and give the reason for cancellation.
If you plan to get a new vehicle or are between cars, you might want to maintain coverage to avoid a coverage gap. You can purchase a non-owner car insurance policy.
If you get into an accident without insurance you’ll be liable for any property damage or injuries you may have caused (meaning you’ll have to pay out of pocket).

Involved in an Accident with an Uninsured Motorist?

We’ve told you what to do to try to keep your car insurance valid, but remember 1 in 7 (yes, you read that right) drivers in Florida are uninsured or underinsured. While you might have insurance, the person who hit you may not.

At Mickey Keenan P.A. we strive to make you whole again and fight for the settlement that you deserve. If you have been in a car accident with an uninsured motorist, and have suffered any injury or personal loss, our expert auto accident attorneys are here to help.

Call us today for a free consultation at 813-871-1300 or schedule an appointment with one of our veteran car injury attorneys, Alan Bulnes or Mickey Keenan. Don’t settle for less. Here, your family is our family.