Almost all states require car owners to get an insurance cover for their vehicle. However, you may get that dreaded phone call or email from your insurer, informing you that they are going to cancel your policy.
It is illegal to drive around without an insurance policy so your initial reaction will be to panic. What I would advise thou is to act quickly. Once you are notified, there are only limited things you can do to save your policy.
There are various things that would provoke your car insurance company into cancelling your policy. Let’s have a look at them.
- Failure to make payments
One of the most common reasons that your insurance company would cancel your policy is due to numerous failed payments. An insurance company will try to reach you numerously before cutting the policy.
To avoid finding yourself in such predicaments, sites like https://www.iselect.com.au/car/ have numerous car insurance options. It is for you to choose the best policy and the perfect payment plan that will ensure a seamless working relationship with your insurer.
- Too many claims
Insurance is a business like any other. So, when you file too many claims, your car insurance company might deem you a dangerous driver and a risky one for them to insure.
Unfortunately, some drivers will suffer even when they are not the at-fault party. Apart from motor collisions, fires, theft, vandalism, and natural catastrophes can be the cause of your claim. In such cases, your insurer will let you know that they will not be in a position to renew our insurance after its expiry.
The moment your insurance company tell you this, it is time to look for another insurance company in order to remain covered.
An insurance company will terminate a cover once they find out that you have lied about an accident. They will also not hesitate to do the same when they find out that you wrote that you had no prior violations in your application form when in fact, you were at fault in more than one motor collision that previous year
It is not only the above ‘big’ frauds that will drive your insurer into cancelling your policy but also ‘insignificant’ lies like not telling the truth about the number of kilometers your car goes every year or not including a high-risk driver in the cover.
By properly filling out your application forms, reduce the risk of your policy being cancelled and in some cases, hefty fines and possible jail time. Also, if anything that relates to the car policy changes, it is advisable to talk to your agent as soon as possible.
- Health concerns
Unfortunately, suffering from some conditions might cause your car insurance policy to be revoked. If you suffer from illnesses like epilepsy or any other condition that impairs your ability to drive, your insurer and the body that issues driver’s licenses might need a doctor’s note saying that you are fit to drive.
Otherwise, they might revoke your driving license and your policy or you might be stuck with the entire bill all to yourself if you happen to get into an accident.