Why Did My Car Insurance Company Drop Me?
To drive a vehicle legally most drivers are required to carry some form of car insurance. While many drivers are never denied car insurance, others are suddenly dropped by their car insurance providers. There are various reasons why your car insurance provider may drop you.
You Have a Bad Recent History
The first reason why a car insurance company may drop you is if you have a bad recent driving history. If you have recently gotten into various car accidents or received a few moving violations then your car insurance provider will consider you an increased risk. While many car insurance providers attempt to offset the risk by increasing the premium costs, other insurance providers may decide to drop you all together.
You Miss Payments
Another reason why your car insurance could drop you is because you either miss payments or are continuously late. Under most car insurance policies, if you are more than 30 days late, your policy becomes void. If you routinely are late in making insurance payments, your car insurance provider may consider this an inconvenience and they may decide to drop you.
You Move into a New Home
The third reason why your car insurance may drop you is because you move. One of the largest determinants in car insurance costs is the location where the car is stored. If you move into an area which experiences a high amount of traffic accidents or thefts your car insurance provider may consider insuring you too risky. If this is the case, your car insurance provider may drop you instead of raising your rates. Other insurance providers may require you to raise your deductible without receiving a discount in rates.
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