Being dropped by an auto insurer is never a good sign, and there are multiple reasons why an insurer would decline to renew a policy. However, there are a variety of ways to solve the problem. Before getting on the phone with the insurer, customers should take some time to learn about their situation. Below are some reasons customers are dropped and some information on buying new coverage from a Vehicle Insurance Consultant.
Reasons Customers Are Dropped
As said above, insurance companies drop customers from their coverage rolls for a variety of reasons. The most common cause is nonpayment of monthly premiums, but some carriers reinstate customers who pay their balances within a certain time. Many insurers can cancel policies within the first two months for no reason, and companies often do this when applications contain discrepancies. An insurer can cancel a policy for traffic violations such as DUIs or if a customer makes excessive claims.
Being Dropped Is Stressful
It can be extremely stressful to be dropped by an insurer, as it’s illegal to drive without auto insurance. Once a person knows why they’ve been dropped, they should call a Vehicle Insurance Consultant so they can get back behind the wheel. Appealing a policy cancellation is an option, but the process can be time-consuming. If a policy is reinstated after it’s dropped, it’s almost always done at a higher premium.
High-Risk Customers Pay More
If a person’s coverage is dropped due to excessive claims or violations, they’re considered to be a high-risk customer. These customers may find it difficult to get insured through a major company at a reasonable price, but there are options available for those with less-than-stellar driving records. If a driver cannot find coverage after a crash or if they need an SR-22 document, a non-standard carrier can offer insurance at a competitive rate.
Once a customer knows what kind of auto insurance they need, the comparison process can begin. Perdue Insurance Group offers simple tools that deliver instant quotes, and customers can take advantage of the online quote process right away. By learning why coverage was dropped and by comparing prices on new coverage, it’s easier for drivers to get back on the road safely and legally.
