You are required to have car insurance to legally operate your car. If you get caught driving without it, you could face serious consequences.
It is less expensive to maintain coverage and drive legally than to risk it all by being out on the road without coverage. If you have insurance coverage, there are several reasons that your coverage could be canceled.
Here are some tips on how to avoid those situations.
Reasons For Insurance Cancellation
- Non-Payment
- Health Issues
- Dangerous Driver
- Numerous Claims
- Fraud
The most common cause for auto insurance cancellation is failure to pay the premiums. Usually, your auto insurance provider will try to contact you a few times before they cancel coverage. State laws also come into play.
As an example, Illinois law requires auto insurers to mail a letter to the insured at least 10 days prior to cancellation for non-payment, so the insured will have time to remedy the problem. Consider signing up for autopay if possible, to ensure your premiums are paid on time.
Sometimes your health can affect your ability to drive. If you have a medical condition that could affect your driving, you might have your driver’s license either restricted or revoked. Your auto insurance could be cancelled as well.
As an example, if you suffer from epilepsy, your insurance provider might require you get a statement from your physician indicating that your seizures are controlled, and you can safely drive.
You should be honest with the insurance company when you apply for insurance coverage, otherwise you could find your policy to be void should you get in an accident.
If you have multiple moving violations, or a suspended or revoked license, you could have your coverage cancelled. If you do get a ticket, consider going to traffic school to get the ticket off your record or try to have the ticket switched to a non-moving violation which will reduce the points you get on your record.
In some states, you can have coverage cancelled if you have a conviction or accident record, which labels you as a dangerous driver. To avoid this, drive carefully and adhere to traffic laws to avoid getting tickets.
Your car insurance is in the business to make money, not spend it. If you file too many claims, your car insurer might determine that you are too much of a risk for them to maintain your coverage.
This can happen even if the claims are for reasons that aren’t your fault, such as uninsured motorist claims, theft-related incidents, and weather claims, such as hurricane or storm damage.
If you lie on your application, such as saying you didn’t have prior violations or didn’t have any claims when you had two at-fault crashes during the last two years or had five claims in the last year.
Besides getting your policy cancelled, intentionally lying on your policy is considered fraud and can lead to fines or jail time. You should be honest on your application and notify the insurer any time you have a change.
Consult with a Personal Injury Attorney
If you have been involved in an auto accident, consult with a personal injury attorney who practices in your area.
Accident injury lawyers work on a contingency basis, so you have nothing to lose. Get your free case evaluation today.
