It is important for every driver to understand the concepts of insurance non-renewal and cancellation. A cancellation of an auto insurance policy can keep one from driving a car, and it’s the driver’s responsibility to keep continuous coverage. Most people keep their records clean and premiums paid, but it’s common for failures to occur on both counts. If a coverage lapse happens, it’s vital to know the difference between non-renewal and cancellation.
Non-Renewal vs. Cancellation
A non-renewal occurs when Auto Insurance Companies in Elyria OH , decide that a customer isn’t worth the risk anymore. Excessive claims and a poor driving record can influence the insurer’s decision, but most companies notify customers roughly a month ahead of time. Future insurers frown on non-renewals, and it may be worth a driver’s while to file an appeal.
Cancellations tend to be much more severe, and they can occur after any breach of the agreement between the insurer and the customer. Whether it’s a missed payment or an arrest for fraud or DUI, many insurers can cancel a policy at will. The insurer must notify the customer, but they may still struggle to find new coverage without suffering a lapse.
If either a non-renewal or cancellation occurs, it’s important to get covered again quickly. It is illegal to drive without insurance. Shopping around is the ideal option, but if one finds themselves uninsurable, a state “assigned risk” plan may be the only choice.
Avoiding a Non-Renewal or Cancellation
The easiest way to avoid the situations described above is to set up automatic payments through an online bank or savings account. If the issue is rooted in a person’s driving record, however, a higher future rate may be inevitable.
If a driver wants to learn more on how car insurance coverage works, and when they can change policies, they can ask Auto Insurance Companies in Elyria OH. The staff at Schlatherinsurance.com can explain the company’s policies on lapsed payments, and they can clarify policies on non-renewals and cancellations. By knowing when a policy can be cancelled, a driver can take steps to ensure that it does not happen.
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