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There are two ways a car insurance provider can drop a customer.
Insurers can generally refuse a renewal as desired, but can’t simply drop customers that easily. An insurance policy is a contract, and the insurance company can’t bail out of it unless the contract has been violated.
There are two main ways this might happen:
Generally, as long as the premiums are all paid up, a customer has to step pretty far out of line to be dropped by a car insurance provider.
Car insurers must give you notice if your renewal is being declined or your policy cancelled.
This must be in the form of a written notification, provided at least three business days ahead of cancellation of a declined renewal.
Insurers are not generally required to provide this information unprompted, but often will.
If you ask for a reason, insurers are usually required to provide it. Similarly, insurers are typically obligated to provide details of their dispute resolution process if requested.
Comparing car insurance will not only make sure that you get the right product but will also help you get the best price.
There are many reasons a renewal might be declined. Typically, it’s some variation on you being a statistically riskier driver than you were when you took out the policy.
Typically these will manifest as higher premiums first, but eventually an insurer might simply consider the risk unreasonable.
A suddenly declined renewal could be any or any combination of risk factors an insurer considers, including:
The best way to avoid having a policy cancelled is to not commit insurance fraud, to be honest on your applications and claims and to keep up with premium payments.
Making sure your renewal is accepted can be more difficult. Where possible, try to:
Drivers don't just face extra fines. They're also at risk of increased insurance premiums and license suspensions.
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