Trying to find a great auto insurance provider can be tough. It even becomes harder if the car insurance company decides to cancel it. As a matter of fact, the cancellation could see you pay high rates when securing a new policy. After all, it makes insurers consider you a risky customer. On the other hand, trying to resolve the issue with your old insurer may also be a daunting task. That begs one simple question. What are the things that can land you in such huge trouble? Here is a discussion of the reasons for the cancellation of your auto insurance. The article will help you to a great extent avoid what can be avoided. So, read on!
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Using Your Car Commercially to Drive Passengers
If an insurer realizes that you never informed it about using your vehicle as a taxi, it may cancel the car insurance. The same case applies to people who use their cars for rideshare companies like Lyft and Uber. Again, not disclosing it could see your insurance provider cancel its cover as soon as it finds out.
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Using the Car for other Business Reasons
Of course, there is commercial auto insurance. If that’s what you secured, go ahead and use it for business. However, if you purchased a personal auto policy, using it for business is yet another reason for the cancellation of your auto insurance. If you don’t want to lose it, don’t use personal cars to make deliveries. Equally important, avoid using it when visiting job sites. That said and done, it is okay to use it to commute to work.
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In case of a Fortified bail or Conviction Due to a Traffic Offense
Are you guilty of drinking under the influence? It is just one of the many offenses that could see your auto insurance canceled. So, simply avoid committing them, and all will be good.
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Medical Conditions
It is important to note that not all medical conditions can lead to the cancelation of your auto insurance. However, some influence how you drive, including how safely you can do it. Some of them are heart attacks and epilepsy. Therefore, if your car insurance provider realizes that you have such conditions and they have an adverse effect on your driving safety, it may not hesitate to cancel your car insurance. If your condition changes
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Making a Fraudulent Claim
When filing a claim, ensure that you stick to nothing else but the truth. The same is also expected from you if another party files a claim against your auto insurance. Don’t leave out any detail while at it. The information offered also needs to be as accurate as possible. If you fail to do so, you only have yourself to blame if your insurer cancels your cover. Remember that they can be pretty unforgiving to someone who makes a fraudulent claim.
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A Bad Track Record
Since we are focussing on cars, a bad track record, in this case, can mean causing a lot of accidents. Having too many traffic tickets significantly speeding is also a characteristic of a bad driver. If that’s the case within a period of, let’s say, 36 months which is often common among insurance providers, there are high chances of the cancellation of your auto insurance.
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Revocation or Suspension of your Vehicle Registration or Driver’s License
Whether your vehicle registration or driver’s license is revoked or suspended, that’s enough grounds for your insurance provider to cancel your auto policy. This cancellation ground only applies if such events occur during your policy period. In some cases, the driver may not be the car’s owner. If that’s the case and the driver’s license is revoked or suspended, the insurer may not cancel the cover. However, they will demand that the driver be excluded from that policy. Failure to heed that may make the auto insurance canceled, no doubt.
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Failure to Disclose Important Information During Application
There are various factors that insurance providers use when determining the premiums to charge you. For instance, the regular driver of your car needs to be unveiled. The insurer will also ask you about the address of its garage. People are aware of such things. Therefore, the temptation to lie about such things to pay fewer premiums often arises. That’s what people refer to as material misrepresentation in the insurance world. If you are guilty of failing to disclose accurate information during the application, you better hope that they will never find out. That’s because they will cancel your auto insurance as soon as they realize that you lied. There are other better ways of saving money on car insurance, no doubt.
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Not Paying the Bill
An insurance policy is an agreement between you and your insurer. The insurance provider should compensate you according to the terms of your agreement. On the other hand, you should also pay your dues for the cover to remain valid. Where you don’t honor your end of the agreement, you leave the company with no other option other than terminating the contract. In most cases, you will have a period of about 30 days after the payment due date to pay what’s due. If the grace period is exceeded, your auto insurance cancellation is bound to happen.
Conclusion: Reasons for the Cancellation of Your Auto Insurance
If there is one thing that one can deduce from the above discussion, most of the reasons for the cancellation of your auto insurance depend on one’s behavior. Therefore, it is easy to avoid getting into such a situation. Ensure that you pay your bill on time. If it is personal car insurance, see to it that you only use the vehicle for personal use.
Avoid defying any traffic rules because tickets and vehicle registration or driver’s license suspension/revocation could lead to the cancellation of your auto insurance. In addition to that, always observe honesty during application and when making a claim. If you do so, rest assured that the chances of the insurance provider canceling your auto insurance will reduce significantly. Getting advice from the likes of the FindMyQuotes platform and experts can also help.
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