How to Deal with Losing Your Car Insurance

Did your car insurance company just drop you? Don't panic! You do not have to be a victim. When auto insurance companies drop a customer, you normally have two reasons: cancellation or nonrenewal. A nonrenewal occurs when your insurance provider decided to part with you at the end of the policy. This will either happen for business reasons that have nothing to do with the customer, or it can happen because they view you as a high-risk customer. When a company cancels on you, this is more severe, and it happens when the company drops your coverage before the term ends.

Under state law, car insurance companies have been given specific situations where they can cancel a policy. What happens if you find yourself in one of these situations? First, start shopping around. When an auto insurance company decides not to renew your policy it could be due to reasons that have nothing to do with you. For example, they might be trying to phase out a specific type of coverage. If it is for a non-renewal clause, the insurance company will normally have to notify you beforehand.

Should an insurance provider cancel their policy with you, you should be prepared to pay more elsewhere. Never misrepresent yourself on an application, get convicted for DUI or have numerous accidents. All of these could be grounds for termination of your policy.

In some cases, you can fight a cancellation if you think the reason is unclear. If the company did not make it clear for why they cancelled their policy, you should contact them to learn about it. Under federal law, your insurance company must contact you before they cancel your policy so that you will not be blindsided. The length of notice will depend on your home state, but Georgia insurance providers can cancel a policy after 10 days of nonpayment.

Call Pachuta Insurance Today @ 706-769-2262
Source:
Christian Science Monitor
United Policyholders