Answer:

Here are a few examples:

1. Your policy will be cancelled if you do not pay its premium.

2. A revoked or suspended driver’s licenses can cause cancellation of your policy – even if the guilty party is not you. It could be someone who lives with you, or someone who customarily operates your auto.

During an initial period (typically 60 days) from the time the policy goes into effect, the company may notify you that they do not intend to continue the policy.

If you get coverage from another insurance company, your policy with the first company needs to be cancelled and in some cases your new company will offer to send the cancellation notice for you.

Cars insurance policies can be cancelled at any time throughout time of their action by the auto insurance company. More low we will consider some reasons because of which it can occur.

Late Payments

If you do not wish to pay your car insurance premiums during long time, and you pass payment, the auto insurance company can cancel the policy. The majority of the car insurance companies will give you time considerable quantity that you had possibility to carry out last payment, but can sometimes be and such, that they cancel your car insurance policy only after 5 days of a delay of payment of the premium. One of ways to avoid it consists in paying your car insurance premium at once completely or to make adjustment of automatic premiums that will allow you not to risk that you will forget to make it.

Misrepresentation

The car insurance company can make the decision on cancellation of your auto insurance policy in the event that they will find the fact, that you have deformed any data in the questionnaire, during that moment when you have undersigned for the car insurance policy. Many people don’t see the harm in telling the insurance company the car is parked in the garage when it’s really parked street side. The problem is, this is more of a risk for the insurance company. If they find out about this they can, and usually will, cancel the policy. Anything you state when you sign up for the policy needs to be truthful to avoid this.

Dangerous Drivers

If you’ve received a lot of tickets, DUI’s, or have had a bad accident the insurance company may deem you as a dangerous driver and cancel the policy. Even having too many traffic tickets can trigger a cancellation. From the standpoint of the insurance company even having tickets for things like not using a turn signal may not seem like a big deal to you, but it shows the insurer that you aren’t obeying traffic laws. Too many of these and you can be cancelled.

In the case of a DUI or DWI, the insurance company can and usually will cancel the policy after just once offence.

Lapse in Coverage

If you’ve had a policy cancelled for whatever reason you need to find a new policy as soon as you can. A lapse in coverage makes an insurance company wonder why you haven’t been insured. If you let a policy go and don’t pick up another one for a few months the insurance company may see you as an irresponsible driver. When you first set up your policy you will be asked about any prior lapses in coverage. Be honest. It’s better for you if you don’t get the policy than if they decide to cancel the policy because they found out that you had a lapse in coverage.

Having a policy cancelled by the insurer can cause a lot of problems for you down the road. Having a policy cancelled will mean you will have a much harder time finding a new policy, and rates may increase since you will be seen as a high risk. Knowing what the companies will cancel you for will help you avoid those things to keep your policy current.