Why Car Insurance Companies Cancel Coverage

Find out why car insurance companies cancel coverage and get free car insurance quotes online from us! Here are the main reasons:

Breaking the Terms of Your Auto Policy

Anytime you violate the terms of your auto policy, you’re likely to hear questions from your insurer. If you own a home-based or small business, and use a personal automobile in conducting that business, your policy could be cancelled at any time.

Committing Outright Fraud or Lying to an Insurer

Business meeting

Business meeting

When you’re shopping for auto insurance or when you’re making a claim on a policy, it’s important to be as truthful and thorough as you possibly can be. Any sort of discrepancy, even if it isn’t intended as a “lie” can be used to not simply cancel a policy or issue of a DNR notice on your car insurance coverage.

You should strive to provide truthful information to your insurer. Things like the drivers in your household, primary drivers of specific vehicles and even the annual mileage you report to them should all be honest, otherwise, misinformation can become their reason to cancel your auto policy.

Driving Badly and Making Excessive Claims

Moving violations, especially serious ones that cause you to lose points off your driver’s license or put your license in jeopardy are the prime issues here. In fact, you won’t even have to get to the point of risking a loss of your driving privileges with some insurers. If your insurer believes you’re too great a risk, they won’t hesitate to drop you as a customer. This also goes for excessive claims or too many claims where you were the at-fault driver.

Failure to maintain payments on your policy

We cannot stress this enough: failure to pay your policy premiums is the most common reason an insurance company would cancel your policy or issue a DNR. Some will even take a consistent history of late payments as reason enough to issue a DNR on a policy.

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