Ways to Get Dropped by Your Insurance Company
Auto insurance is the law here in Arizona, where the minimum coverage requirement is:
- Bodily Injury Liability Coverage: Minimum $15,000 per person / $30,000 per accident
- Property Damage Liability Coverage: Minimum $10,000
- Uninsured Motorist Bodily Injury Coverage: Minimum $15,000 per person / $30,000 per accident
- Underinsured Motorist Bodily Injury Coverage: Minimum $15,000 per person / $30,000 per accident
Since a fender bender can run $15k, you may want to have more coverage. What you absolutely will not want is to get dropped by your insurance company, and have no insurance at all.
So, how does a driver get dropped?
There are two ways. The policy can be canceled or just not renewed. The third thing that can happen is that your premium becomes so high that you just can’t afford it.
Here we review some ways to get canceled or not renewed:
Nonpayment of premiums
Nonpayment is the easiest way to get your insurance company to drop you. You may have a little wriggle room if you pay your premium late, but there isn’t a lot of leeway there, so don’t do it.
A ‘dangerous driver’ health issue
Specific health issues like uncontrollable seizures, uncorrectable vision, etc. which can make you lose your license can also cause you to lose your insurance coverage. Heart problems, mobility problems, and other factors also may play a role.
Lying to them
Falsifying your insurance information, hiding that ‘dangerous driver’ health issue, tickets and other lies can get your insurance revoked. The best thing to do is be honest.
Too many claims in too short of a time period
Insurance is a money-making business, and when an insurance company can see that you aren’t going to make them money, they can pack it in. The various factors which can stack against you, such as poor credit and incomplete information, pale in comparison to too many claims--for any reason, even when you aren’t at fault.
The insurance company no longer services your area
Sometimes branches of an insurance company, even a national chain, will no longer serve a particular area or carry certain kinds of insurance. Area-wide cancellations happen quite often in small towns. It’s something to keep in mind when you sign on with a particular company.
Check out an insurance company’s ratings and make sure your insurance agent is licensed before purchasing insurance from them. Each state has an insurance complaint agency. Check that out if you're insurance shopping or have a problem.
Insurance doesn’t have to be difficult. But it has to be paid, and you have to be truthful, healthy enough to drive, and diligent. Your car isn’t junk until you deem it so. When you do, you can cancel that insurance and give us a call.
If you are in the Phoenix Metro area and want a no-hassle cash offer on an old, wrecked, unwanted, salvage or burned car, SUV, van or truck, give us a call at I Buy Junk Cars 480-771-8290.