Can My Auto Insurance Be Cancelled Due to Accidents?

Unexpected bad things do happen on the roads and that is one of the reasons why you buy vehicle insurance coverage. Naturally, you would expect your looses fairly compensated if the vehicle needs repairs. If you caused injuries and damages to other people, they would certainly make a claim on your policy. This is a normal process and you may just count yourself unlike to get involved in a crash and lucky to have insurance.

First of all, accidents aren’t equal. You cannot do anything about someone crashing onto your parked automobile. It isn’t something you could have prevented and you can claim on their policies if you know who they are. Your policy isn’t likely to be affected when you are not at fault and third parties’ carrier pays for the damages.

At fault accidents always grab attention. Those are clear indications that you are not as reliable driver as they thought you were. Yet, anyone can have one unlucky incident. This is perhaps how the underwriter would view if it was the first incident for a long while.

Policyholders with about five years of no claim history can actually choose to buy accident forgiveness cover that will prevent rates going up after the first one. Not only it wouldn’t be cancelled but also you may not see premium increase at renewal if you have it.

On the other hand, you should start worrying about a possible non-renewal if this is the second at fault claim in the last three years. Depending on the carrier, you may face non-renewal or substantial premium increase. If it is less than 60 days old, most states allow insurers to cancel a policy with very little excuse and an at fault accident would be more than enough reason to terminate it there and then.

Generally, car insurance companies can be classified as standard and non-standard. A well-known brand with millions of customers can choose not to insure certain types of risky motorists. But there are substandard carriers who cater for those people who are left out by the mainstream providers. They are less choosy but their rates are usually much higher than usual.

Once you are fallen off the preferred risk category, it may take you several years of good driving records before a traditional firm with good rates offers decent quotes. In other words, being labeled as high-risk driver could cost you a lot of money in those years.

So, it is not the end of the road if the auto insurer drops you. You can still get coverage even though it would most likely be from a less reputable name and with much higher rates. This is assuming it was due to claims. Companies drop coverage for many other reasons including a strategic market positioning and large losses in the region. If it wasn’t due to something you have done you shouldn’t have much problem finding alternatives.

Traffic incidents usually result in higher premiums for about next three years. If you just had one, you need to deal with its consequences, whether it is raised price or finding another provider because you are dropped. Don’t just accept the next quote and spare time to find the best deal in current circumstances.

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