Finding the best auto insurance policy can be difficult, so when you've found the right provider, getting your policy renewed is important. Unfortunately, there are many cases in which an insurance company may decide not to renew your policy – here I'll explain why this can happen and how to avoid it.
Reasons your insurance renewal can be denied
All auto insurance policies differ, but they do have one point in common - all policies will penalize high risk drivers with high insurance premiums or auto insurance non-renewal. You can be informed of non-renewal either though a cancellation - which can occur without notice at any time, or through a non-renewal notification, which you will receive around the time your current insurance is set to expire. Depending on your insurance policy, non-renewal notifications can give you anywhere between 10-30 days notice.
Despite different policies, the following is a list of reasons most auto insurance companies would issue a non-renewal.
- An excessive number of traffic violations within a short amount of time, typically 3 to 5 years. Insurance companies will note patterns i.e. repeat offences, as these indicate that the driver has not 'learned their lesson' through previous mistakes and penalties, and will continue to be a high financial risk.
- An excessive number of accidents where the individual is at-fault (accidents where the other driver is at fault do not count).
- Driving under the influence (DUI) or driving while intoxicated (DWI).
- Filing too many accident claims. Although this may seem unfair, especially if the accidents are minor and not at fault, individuals who are constantly making claims are obviously a higher financial risk.
- Not making your auto insurance premium payments. This may also result in a cancellation.
What happens next if you are denied insurance renewal?
You are legally required to maintain auto insurance - so if your insurance policy is denied, you must find another provider as soon as possible, or challenge your provider's decision through their customer service department.
How to avoid a non-renewal
In order to avoid a non-renewal try your best to maintain a clean driving record (including traffic violations). If your driving record is not looking good, you can take a defensive driving class. This will show insurers you're serious about improving your driving performance and becoming a safer driver. Finally, always make sure you pay your car insurance premiums on time, and avoid any lapse in your coverage.
In conclusion, there are many steps you can take in order to avoid the awkward situation of auto insurance non-renewal, and conscientious drivers needn't worry. Making sure you have the cheapest and best auto insurance in the first place can also be a hard task, the hundreds of insurers out there are potentially overwhelming. If you have doubts that your auto insurance provider is providing you with the best deal - don't worry! At GET.com we help you save time and money by letting you compare auto insurance rates from the best providers in your area. Simply choose your state in the box below to find the best auto insurance rates in a click!