Since driving without car insurance is, well, illegal, it can be more than a little stressful if you suddenly find yourself without coverage. Among the things that can make you lose car insurance coverage, the ones that could have a huge impact on your future insurance needs are if your policy is canceled or nonrenewed. There’s a big difference between the two, and one can cause a lot more mayhem for your future insurance coverage than the other. So, let’s take a look at the differences.
What is nonrenewal of an auto policy?
Your Atlanta car insurance covers you on a year by year basis. So, each year, you may get some sort of notice from your carrier asking if you wanted to renew your car insurance. Some drivers simply renew their policies; some drivers choose to not renew their policies and shop around. However, many drivers don’t know that nonrenewal can work both ways.
That’s right. Your insurance company can also choose to not renew your coverage.
Don’t worry, it won’t just be on a whim. If your carrier decides not to renew your policy, they have to give you proper notice before your policy is up. The amount of time that is considered “proper notice” does vary by insurance carrier. So, you may want to look through your policy for this bit of information just in case. Additionally, your carrier also has to give you a reason that they’re choosing not to renew your coverage.
Why was my car insurance nonrenewed?
There is a list of reasons why your car insurance carrier may not renew your policy. However, some of the most common reasons are:
- Your insurance company doesn’t offer that type of coverage anymore.
- Your carrier is trying to scale back on issuing those types of policies.
- You’ve become a LOT riskier for your carrier to insure. (This mainly happens if you’ve filed too many claims within your policy period.)
If you don’t agree with the reason that you were nonrenewed, call your insurance company and ask if they could give you more details.
Can I still get insurance somewhere else if my policy is nonrenewed?
Usually, you’ll be able to find another policy with another carrier, but it’s going to be a bit trickier. Your policy may be a little more expensive, but you could still qualify for some of the car insurance discounts that you had with your previous policy.
So, the best thing to do when you first find out that you’ve been nonrenewed is to ask for clarification on the reason you’re being nonrenewed. If your carrier still denies you coverage, start getting Atlanta car insurance quotes from multiple companies as soon as you can so you can get the best possible rate on your next policy.
It might seem like a hassle, but remember, we can help! We have relationships with several different carriers so that we can give you the best rates on new car insurance, and you can leave the hassle of shopping around for car insurance quotes to us!
But this is just if your carrier decides to discontinue coverage and let you finish out the coverage year. What happens when an insurance company ends your coverage a little more urgently?
What do I do if my car insurance policy is canceled?
Oof. This might be a bit trickier to manage. If your car insurance company has or is going to cancel your insurance – they’re not waiting until the coverage period simply ends. They’re ending your coverage as soon as possible (again, with proper notice).
Your car insurance company can “cancel” your coverage any time after it’s been in effect for more than 60 days for these reasons:
- The car insurance premium has not been paid.
- Insurance fraud.
- False or not completely true information was provided on the application.
Again, you’ll get proper notice if your policy is going to be canceled. So, it will be important to start shopping for policies from multiple carriers as soon as you receive the notice.
Can I still get car insurance if my policy was canceled?
It’s possible, but keep in mind that it’s going to be a lot harder to get insurance after your policy has been canceled. If you’ve posed enough risk that one insurance company stops insuring you, then other insurance companies are going to be hesitant to take on that risk.
Depending on the situation, though, you may be able to build up your insurance reputation again. For example, if your previous policy was canceled due to missed premium payments, you may be able to get your plan back if your carrier allows you to pay for a year up front. If they don’t allow this type of payment, you may just have to get a high-risk car insurance policy instead.
In either case, you will have to get new Atlanta car insurance coverage before your policy ends. Otherwise, you’ll be driving with a lapse in your coverage, which basically means that you’re driving uninsured. And if you get into an accident during that lapse in coverage, you’ll not only be personally responsible for paying damages to the other driver, but you could face other legal consequences, too.
Overall, losing your coverage when you’re least expecting it can be scary and only preventable at times. To reduce the risk of having your car insurance canceled or nonrenewed, make sure that you’re always being upfront with your agent during your application process. Additionally, keep an open line of communication with your insurance carrier about any changes that may happen to your policy.
If an unexpected change in your coverage is unavoidable, give our experts a call. We can help you get the best auto insurance for your situation and help you rebuild your insurance reputation to get even better coverage and more discounts in the future. Call us, fill out our online form, or live chat with an agent to make sure you’re not missing out on the best auto insurance you can possibly get!