Drivers who have been advised that their policy is being cancelled or not renewed may be wondering, “Can I find auto insurance coverage after being dropped by the company?” It is not the best situation for a policyholder to find him or herself in, but it doesn’t mean that the situation is hopeless.
When an auto insurance policy is canceled or not renewed, the driver may be placed into a high-risk category for coverage purposes. Some companies will not agree to provide coverage to drivers in this category at all, while others will write a policy but charge higher premium rates for coverage. Buying a policy from an insurance provider specializing in the high-risk market is another option for drivers who are in this situation.
Auto Insurance Policy Cancellation During its Term
An insurance company can cancel a policy during its term if the policyholder doesn’t pay his or her premiums as agreed. There is no grace period provided by the company; coverage stops the first day the payment is late.
A driver who has missed a payment may be able to have his or her coverage reinstated if the insurance company is contacted right away. The policyholder will need to make up the payment right away through an accepted payment method if the company agrees to continue to provide coverage. There will be a lapse in protection until the payment has been processed by the insurance company, and the vehicle should not be driven until this process has been completed.
Find Auto Insurance Coverage After Being Dropped by the Company
If the auto insurance company will not agree to reinstate coverage or has dropped the policyholder outright, he or she will need to find another company prepared to write a policy. At this point, the driver should start getting quotes for coverage from different companies. Conducting an online search for “high risk auto insurance” can help the driver find companies which provide coverage to consumers in this niche market.
It’s a good idea to consider more than one company when looking for auto insurance after being dropped by a provider. Each company sets its own rates for coverage, and the cost will vary depending on the provider. Shopping around will help a higher risk driver find the best rates for the type and level of coverage her or she needs to have in place.
Since high-risk drivers pay higher rates for their coverage, drivers in this category need to consider options for keeping their costs down. One way to get lower premium rates is to buy a policy with a higher deductible. Policyholders who agree to pay a higher amount out of pocket when making a claim qualify for lower premium rates.
A driver who buys a policy with a $1,000 deductible will pay lower premium rates than someone who has a $500 deductible. Before making this choice, a driver will need to consider whether paying the deductible would cause financial hardship if a loss occurred.