Having an insurance policy cancelled is a stressful situation. There are many instances in which an insurance company may drop you. One of the most common reasons is unpaid premiums. If you miss several payment dates, an insurance company will notify you that it willInsurance Policy From drop you if the premiums aren’t paid. If you go beyond this date without paying, the insurance company will drop you.

An insurance company will typically give you plenty of notice if they’re considering dropping you. The time of notice they must provide varies depending on state but is typically between 10-30 days. Besides not paying premiums, you may also be dropped due to:

  • Providing false information
  • Filing false claims
  • Becoming a high-risk driver after several accidents
  • Multiple traffic violations
  • Multiple claims

These incidents can not only result in cancellation but also make it harder to find insurance after cancellation. High-risk drivers pay more than standard drivers. The premium cost increase can be over a thousand per year depending on the type of violation a high-risk driver commits.

But say you’ve only missed a few payments and now your insurance company has cancelled your policy. Can you pay your premium after the cancellation date to save your policy?

Cancellation rules depend on the insurance agency. Some have grace periods while others may reinstate your policy within a certain amount of days. For example, if your policy is cancelled due to non-payment and you pay within 30 days, your policy may be reinstated. An insurance agency will typically require you to pay the remaining balance with interest, however. Simply resuming paying your premiums won’t necessarily save your policy from cancellation.

What Happens When My Insurance is Cancelled?

If you’re unable to reinstate your insurance policy and it’s cancelled, you will have to file for another policy. Your current insurance agency may allow you to file another policy with them or you may have to find another carrier to insure with. After a cancellation, your insurance costs will typically be higher since you’re seen as a higher risk to insure. Insurance companies want to be sure that you have the means to pay your premiums and may require you to provide evidence of insurability. Evidence of insurability shows that you are healthy enough to hold an insurance policy. For car insurance, this may show you are healthy enough to drive safely.

Posted 3:29 PM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019


View Mobile Version

Contact Us Today!
(417) 624-5724

Social