Being dropped by one’s auto insurance company is neither a good feeling nor a good sign. There are multiple reasons why an insurer would cancel or decline to renew a policy and, thankfully, there are many ways to solve the problem. Read on to learn why insurers drop customers and how one can stay insured so they can legally drive.
Cancellation Reasons
Most auto insurance in Peoria is canceled because the customer does not pay the monthly premium. However, some carriers allow customers to catch up on payments within a certain period. Auto insurance companies are allowed to cancel the policy within the first two months without cause and may do so when they discover omissions or discrepancies in the policy application. Finally, an insurer may cancel a policy if the customer has a traffic violation, such as a DUI, or if they make an excessive number of claims.
Being Dropped is Stressful
It is very upsetting to be dropped by an insurance company, as it is not legal to drive without coverage. Once one knows why they’ve been dropped, they should do some research and comparison shopping to get rolling again. Although a cancellation may be appealed, the process is often long and complicated. Reinstating after a drop usually means higher monthly premiums.
Those Dropped Because of Claims or Nonpayment are a Higher Risk
This can make it hard to find auto insurance in Peoria with a major insurer at a reasonable price. Higher-risk customers can find coverage with non-standard companies who have flexible policies and lower prices for those with less-than-stellar driving records. For those having difficulty finding coverage after a DUI or being dropped, these carriers can typically offer a competitive rate.
Determine the Customer’s Needs and Go Shopping
Online quote comparison tools allow dropped customers to get quotes quickly and easily. These tools are great to use, but they are no replacement for the prompt, professional, and personalized service from a local company like Save-A-Lot Auto Insurance. By going to a local agent, one can get insurance and be legally protected so they can get back on the road.
