Although car insurance is regulated by state policies, there are cases where a car insurance provider will drop their policyholders for reasons that do not necessarily involve a violation against insurance laws. Auto Insurance Leads might go over these reasons when evaluating clients to be included in their listings. You may have problems looking for another insurance company if your current car insurance provider rejects you. To avoid having your auto insurance being dropped, be aware of the things that could cause this to happen to you.
You are not eligible
Insurance companies typically review an applicant's eligibility for insurance for a 60-day period. Your application can be denied if you have an undesirable history of numerous traffic violations and unfavorable claims. You could also be rejected if you do not provide proper requirements like proof of your previous insurance coverage. If the company drops your application, they will usually send you a notice in advance.
You are determined as high risk
Insurance companies usually follow a standard procedure to determine whether an applicant is inexpensive or risky to insure. If you had a lot of accidents in the past and your insurance premiums weren't enough to take care of the damages, your insurance company may drop you when they find out. Low-risk clients and people who can consistently pay their premiums are preferred by insurance companies. Felony convictions and a bad credit record will not be favorable for you and will only cause you to be assessed as high risk and make it possible for your policy to be dropped. Although there are insurance groups that specialize in providing insurance for high-risk drivers, their policies are usually very expensive.
You are involved in misrepresentation or fraud
In the event you were guilty of insurance fraud, the insurance company can end your coverage when it is legally possible. Aside from losing your policy, you may also be criminally prosecuted under state laws. If the insurance company finds out that you misrepresented information, they could also drop your policy. This may happen even after the 60-day window has passed.
Your driving history has major traffic offenses
Reckless driving and driving under the influence are among the major violations that an insurance company can use as basis to terminate your coverage. This will be the case even more so if these violations result in your driver's license being suspended. Generally, insurance companies go over vehicle reports of their customers periodically therefore previous violations will likely be found out.
Your car insurer can drop your car insurance because of different reasons but you should remember that your driver's rights are also protected by state law. In cases where you feel that your driver's rights were disregarded or that you were refused insurance coverage on unreasonable grounds, you may consult and file a report with insurance regulators.
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