How to Re-Insure after Car Insurance Dropped Me?

Can car insurance drop you? If you get too many traffic tickets, make too many claims, or violate the specific rules of your automobile insurance policy, you may find yourself dropped. Even worse, most insurance companies reserve the right to drop a customer with little or no warning or even without providing any particular reason for doing so. Citing “demographics” is sometimes a sufficient cause to drop policyholders.

Car Insurance Dropped Me Now What?

You may be asking; what to do now that auto insurance company dropped me? First thing you would want to know is how to get car insurance after being cancelled. Most states make it mandatory to maintain insurance on your vehicles, even the ones that are hardly driven. Therefore, getting dropped from car insurance could mean that you are at risk of having the vehicle license plates or even your individual driver license suspended or completely revoked. As soon as you have been dropped by auto insurance company, it is important to take steps to reinstate car insurance coverage with another company.

The difficulty involved in reinstating car insurance with another insurer will depend on the exact reason why you were dropped. For instance, if your policy was one of many dropped because the insurance company was pulling out of your particular region, getting a new policy may not be any hassle at all, beyond the time required to shop for car insurance and buy. It may even be that some local companies will offer you discount, being eager to pick up the slack left behind by a competitor.

On the other hand, if your car insurance dropped after claim or to many points on driving licence, 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 with different carriers, and try to maximize the discounts you are eligible for, thereby reducing the overall cost.

In some circumstances, such as a license reinstatement after suspension for DUI or DWI, you may even have little recourse but to seek coverage from a company which specializes in high risk policies. Auto insurance with suspended license will almost always cost a substantial amount more than ordinary risk insurance, and the actual circumstances surrounding your case will influence the final policy rates to a large extent.

The good news is that since most state laws require your vehicle to be insured, if you are able to obtain a legal driver license, you will also be able to find an insurance company to insure you and your vehicle. You may be required to have a supplemental policy, such as an SR-22, before being insured, which means an even greater cost. But if the state you live in has deemed you to be eligible to enjoy the privilege of driving, it will be possible to get insurance, regardless of the circumstances involved in being dropped by your previous auto insurance company.

What is being said in the last paragraph is that your state insurance department will help you find coverage. Most states run programs that require auto insurers to accept otherwise uninsurable drivers. If you are a high risk driver you may find it hard to find coverage. If you call your state they will tell you what to do and how you can find coverage.

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