Car Insurance Dropped? What Do You Do Now?

If you find your car insurance dropped, there is really little you can do to retaliate.

Rejection is hard to take, even if it is in the form of your insurance company cancelling your policy. You wonder what you did wrong, how you could have made it work out, and then you get mad that they don’t want you.

Seriously? This is an insurance company we are talking about, not a boyfriend or a girlfriend. Insurance companies are everywhere and there is usually another company willing to take your money if you find your car insurance dropped by another.

I know that it still makes you mad that they are dropping you and you want to get back at them. Honestly, once you have had your car insurance dropped, there is nothing you can do to make the insurance company change their mind.

However, here are some ways to prevent having your car insurance dropped in the first place.

Car Insurance Dropped Right at Beginning

You walk out of your new insurance agent’s office with your new insurance policy in hand and very proud of yourself for the great deal you just got on your new insurance. That is until a couple weeks later when you receive a letter in the mail that your new policy has been cancelled.

What happened?

The primary reason for an insurance policy to be cancelled soon after it is initially issued is that all of the information was not given when the policy was written. This means that you either lied about previous accidents and tickets or they were forgotten. Either way, this additional information can disqualify you from being eligible for insurance with a particular company. At the very least, if you don’t find your car insurance dropped, you will see a large increase in your premium.

A lot of people with accidents and tickets think that if they don’t disclose the information that it will never be found out. However, the insurance company pulls a DMV record and C.L.U.E. report on every single person it insures, so even if you don’t disclose it, they will still find out about it.

It’s always best to be open right from the start to prevent finding your new car insurance dropped.

Car Insurance Dropped at Renewal

When you have received a letter from your insurance company that you will find your car insurance dropped at renewal, this is called a nonrenewal. It means that something happened during your last insurance term that makes the insurance company no longer want to insure you. The biggest reason behind a nonrenewal being issued is an accident or traffic violation happening during the last insurance term.

You can also see your car insurance dropped at renewal for the following reasons:

• Change in insurance company ownership, leading to a change in underwriting criteria.

• Change to the insurance company’s finances that have led to stricter underwriting criteria.

• Drivers being added to your insurance policy that make your policy a higher risk than the insurance company is willing to take.

• Getting older and no longer fitting the company’s definition of an acceptable risk.

• Changing vehicles to one that the insurance company does not insure, such as a high, price sports car.