If I Get Into An Accident, Will My Car Insurance Policy be Cancelled?

When people first get into a car accident, there are pressing things on their minds. Was anybody damaged in the accident? Is there damage to my vehicle? After things settle down, however, there are other things to take care of. The person who is in an accident and files the claim can see if their driver’s insurance was affected by the crash. If the collision was their fault, this could be true. If a policyholder has an accident that is their fault, they often inquire, “Will my car insurance be dropped after an accident?”

While it is possible for a person’s policy to be canceled, which is dependent on numerous circumstances and factors, it would be more likely for your policy to not be renewed. In most cases, however, neither of these situations will occur. It is important, though, to understand what the differences between non-a renewal and cancellation are. There are tips and steps a person can take to avoid being dropped by their insurance provider as well, which will be addressed.

Your Car Insurance Can Be Canceled If

An insurance company can terminate a person’s auto insurance plan before the conclusion of the policy period. This is called cancellation. In most cases, however, insurance carriers are not allowed to cancel a policy that has been in effect for more than 60 days, except in specific circumstances. Situations where an auto insurance provider can cancel policy include for nonpayment of premiums. Also, if a person has misrepresented themselves on their application, their policy could be canceled for fraud. Lastly, if a person’s driver’s license has been revoked or suspended, their plan could be canceled.

In some cases, if a person has been an accident, a company could find out more information about any of these things, leading to cancellation. An accident itself will not cause the cancellation unless it causes a policyholder’s driver’s license to be suspended or revoked. Even in these situations, a person’s plan may not be canceled.

Your Auto Insurance Can Be Non-Renewed If

An automobile insurance provider may choose not to renew your policy. The company can choose not to continue your coverage once your current policy expires. In many cases, a company will have to give you up to 30 days' notice and explain the reasons why the policy is not being renewed. This can happen for a plethora of reasons, though not because of a person’s race, age, gender, marital status, profession, or physical impediment. These things are restricted by law. 

It is more likely that an insurance company will raise a person’s premium when it is time to renew their policy or choose not to renew their policy if you are in an accident. Either of these things is more likely to happen when a person has filed multiple claims in a short period or if they have been involved in multiple accidents within a three-year span that has been determined to be their fault. Also, serious driving offenses such as a DUI or DWI, or reckless driving, can also lead to a plan not being renewed or person being charged a higher premium.

Is It Legal For My Insurer To Cancel Or Non-Renew My Policy?

Car insurance companies are regulated by the state the policy is administered in. Due to this, the ability for companies to not renew, or cancel, policies can vary from one state to another. There are underwriting guidelines that each company adheres to as well. If a person is not liable for the accident they are involved in, the insurance provider will generally not cancel their policy. If you put a claim forward using your collision insurance coverage, your policy could be affected.

How To Avoid Policy Cancellation Or Non-Renewal?

There are ways a person can reduce the risk for auto insurance cancellation and/or to avoid the policy not being renewed. One of the most prominent ways to do this is to focus on being an attentive and safe driver. By eliminating distractions, you are less likely to be involved in an accident. Paying your premiums on time can also help you avoid the cancellation or nonrenewal of your policy. Also, when you apply for coverage or change your coverage, you will want to provide honest and accurate information to your insurance carrier. If you do not, they could cancel your policy. Also, provide accurate and honest information when filing an accident report as well.

Policies are available at DriversInsurance, where you can find the best rates for car insurance available for your situation. Get a free quote and start saving.