Ever thought that your car insurance provider could just drop you as a customer? Turns out, there are many reasons why this could happen. According to an article on theAutoInsurance.com, these are some of the most common reasons reported by insurance companies:
1. Lying on your application – Although, it may be tempting in order to get a better rate, an insurance company will drop you cold if they learn you have lied on your application.
2. Lying on a claim – Also tempting to some, lying on a claim will also get your policy canceled. It could also result with your being a defendant in a criminal court case!
3. You have a new policy – Under federal law, if your insurance policy is less than 60 days old, the insurance company can cancel your coverage and they don’t have to tell you why. Commonly, this occurs after an investigation of a person’s driving record reveals a problem. However, after that 60-day period, an insurance provider cannot just drop you without a valid reason. If they do, you can fight it – legally.
4. Drunk driving or fatality-causing accident – If you’re convicted of drunk driving, your license will likely be revoked or suspended, which gives your insurance company the right to cancel your policy. If it is determined that you’re the at-fault driver in an accident resulting in a serious injury or a death, it’s possible you will be dropped.
5. Non-payment – If you don’t pay your premiums, your policy will quite certainly be canceled regardless of whether or not you think this is fair.
If your insurance company does drop you, you’ll need to get a new policy quickly if you want to continue driving legally. Whether or not it’s possible will depend greatly on the reason you were dropped in the first place. You can either 1) find another insurance company or 2) ask your old insurance company to take you back. Be warned, you may end up paying a lot more for your coverage depending on the reason your original policy was canceled, as you may be labeled a high-risk driver.
Ty Wilson is a personal injury attorney in Georgia and is dedicated to helping injured people and their families. Call his office today at 866-937-5454 to order his free book, 10 Secrets of Georgia Car Wreck Claims. This book is intended to give you and/or your loved one a solid foundation regarding Georgia auto accident claims, how to hire an attorney, and how to deal with the insurance company prior to speaking with an attorney.