If you get too many traffic tickets, make too many claims, or violate the specific terms auto insurance can drop you. Even worse, most companies reserve the right to stop providing coverage to a policyholder with little or no warning or even without providing any particular reason for doing so. Citing “demographics” is sometimes a sufficient cause for not offering renewal terms any more. However, most cancellations are due to policyholder doing something considered very dangerous like causing an accident while drunk.
Car Insurance Dropped Me Now What?
First thing you would want to know is how to get a replacement coverage after being cancelled. Most states make it mandatory to maintain at least liability coverage on vehicles, even the ones that are left to collect dust. Therefore, losing the policy would mean that you are at risk of having the vehicle and/or driving license suspended. As soon as you know you cannot carry on with the current carrier, it is important to take steps to re-insure the automobile with another company.
The level of difficulty in finding a suitable alternative will depend on the exact reason why you were let go. For instance, if you were one of many abandoned because they were pulling out of the region, getting a new policy may not be any hassle at all, beyond the time required to shop around and buy. It may even be that some local ones will offer discount, being eager to pick up the slack left behind.
On the other hand, if the automobile insurer dropped you after a claim or to many points on the license, you may have a bit more problem. You will almost certainly be forced to pay higher premiums. The best option in this case is to shop around tirelessly, and try to maximize the discounts you are eligible for, thereby reducing the overall cost.
In some circumstances, the company would have no option but to terminate coverage. Policyholder losing his driving license is one of those cases. After getting it reinstated, you would have to look for high-risk specialists to accept you with a checkered past. It will almost always cost a substantial amount more than ordinary risk, and the actual circumstances surrounding your case will influence the final premium to a large extent.
The good news is that most state authorities believe that since you have a license you should be enabled with a policy so that you can legally drive. You may be required to have a SR22 certificate, which would increase the costs just a bit more. So, you may need to turn to state ins. department for coverage. Most of them run programs that require companies to accept otherwise uninsurable drivers.
This would allow you to get back on the ladder again. As long as you keep it clean this time the rates will start coming down that will allow you to go back on the traditional market again. It may take several years before your DMV record is cleared, depending on the severity of the traffic violation. Unfortunately, it could take as much as seven years for a DUI. All this time this record will influence rates.
However, you can still find discounts of different kinds that have nothing to do with driving. For example, having a high credit score would help you reduce the burden a bit. Also, keeping a safer auto would help as well. So, you should check these little-known discounts to help you find affordable rates and get re-insured after a drop.
When the rates are high shopping around for the best prices naturally becomes more rewarding. And it is no surprise that high-risk drivers would be looking up and down for some savings. So, get a few quotes online and see who offers a less painful quote.