How To Avoid Auto Insurance Non Renewal
Being at fault in a car accident, or getting ticketed for one or several traffic violations―speeding, fleeing the scene of a car accident, reckless driving, DUI―will penalize you in the wallet. And, in some cases, even result in a suspended drivers license.
But perhaps the toughest penalty is the one you don't see. The one that does not take effect until weeks, sometimes months, after your driving mistake, arriving in the form of a renewal rejection notice from your car insurance company.
Reasons an Auto Insurance Company Will Deny Car Insurance Renewal
Car insurance companies are not in the business of losing money. This is why high risk drivers―an insurance term for motorists with checkered driving records―are either penalized with steep insurance premiums or auto insurance non renewal.
You can be denied insurance coverage either by cancellation or non-renewal. Cancellation happens immediately, out of the blue, as it were, and non-renewal notification occurs as your current car insurance coverage approaches expiration. State laws vary regarding non-renewal notification, but in most instances auto insurance companies are required to provide you between 10 and 30 days notice.
Each auto insurance company maintains different policies regarding non-renewal, but most, in general, will deny insurance renewal for the following reasons:
- An inordinate number of traffic violations within a short period of time―usually three to five years. Insurance companies pay attention to patterns. For instance, if the provider notices a succession of speeding ticket charges, indicating that the driver has no intention of amending his or her lead foot, the insurance company may deem the driver as being too much of a financial risk.
- Too many at-fault accidents.
- DUI or DWI.
- Filing too many accident claims, regardless of how minor or fault. Insurance companies maintain "claims records," which are similar to driving records, only that these records track a driver's claims history.
- Delinquent premium payments. Although, depending on the provider, this may necessitate cancellation.
If You're Denied Insurance Renewal
By law, you must maintain car insurance (or a state-approved alternative) in order to legally drive. So if you're denied car insurance renewal, you have two options:
- Challenge your current provider's decision by contacting its consumer affairs division.
- Find another provider as soon as possible.
How to Avoid Being Denied Car Insurance Renewal
Consider these tips:
- Maintain a clean driving record. This means avoiding traffic violations.
- Take a defensive driving class if you have a checkered driving record. This will convey to your insurance provider sincere intentions of becoming a safer driver.
- Pay your insurance premiums on time and avoid a lapse in coverage.