When Can Auto Insurance Drop You?

1. 

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   Mark Bartlett CLCS

   Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers

   An auto insurance carrier can not drop you mid term during a policy period unless you fail to make your premium payments or if you lied on your application. Now keep in mind, polices are self terminating. So when you purchase a 6 month policy for example, after the 6 months the policy self terminates. At renewal the insurance carrier will chose to offer you or not offer you a renewal, or another 6 months of insurance if they have determined the risk (that would be you the policy holder) have exceeded their risk tolerance. Each time you come up for renewal the insurance company will review you (the risk) and determine if you are a good risk or not. Then the insurance company will either offer you a renewal or chose not to offer you a renewal. It's the insurance companies choice.

   Answered on September 5, 2013

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2. 

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   Tom Sheehan

   Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482

   An auto insurance provider can drop you for the obvious like non payment of premium after the end of a grace period.  You can also be non renewed  at the end of your current policy term because you have had too many accidents or moving violations and therefore fall outside of their filed underwriting guidelines.  In cases like these, they are required to give you notice of 30 days.  If you receive a DWI and your license is suspended and the company hears of this, you may be dropped mid term, but again, notice must be sent.

   Answered on August 4, 2014

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