Insurance policies can be cancelled for a variety of reasons, either by the customer or their insurer, depending on the circumstances. If you’re wondering why your policy may have been cancelled or how you can prevent a policy cancellation, take a look at the top three reasons why an insurance company might need to cancel your coverage:
For example, if you rack up too many traffic tickets, you may find that you’re no longer eligible for coverage under your existing car insurance policy — or that your current insurer can no longer cover you at all. In this case, we will help you find coverage from a company that can insure drivers in your situation.
On the other hand, if your insurer is only able to cover homes worth $2 million or less, but inflation bumps your home’s value up to $2.5 million (a situation beyond your control), your insurer can no longer provide you with the coverage you need, so they’ll likely have to cancel your policy.
For starters, a policy cancellation could result in a lapse of coverage, meaning you won’t have insurance until you find a new provider. If your home insurance is cancelled, it could also affect your mortgage, since insurance is often a condition of financing. A cancellation of car insurance would affect your driving, since it’s illegal to drive without car insurance. Any type of insurance cancellation could also lead to trouble when you’re shopping for a new insurance provider, and you may find yourself paying more for your next policy.
To prevent a policy cancellation and avoid trouble down the road, always:
If you have any questions or need to make a change to your coverage, please contact us today.