Cancelled Car Insurance: What to Do?
For the most part everyone tries to pay their bills on time, but it may not always be possible. With busy schedules and hectic lives it is highly possible that a bill could get misplaced. In addition to misplaced bills, there are some times when many Americans just don't have enough money to pay all of their bills. These are the two most common reasons why a car owner may have their car insurance policy cancelled.
Cancelled car insurance does not have to be a big deal and it will not result into a huge problem as long as it is quickly taken care of. Car owners who had their car insurance cancelled are first encouraged to contact their car insurance company. There are sometimes when an auto insurance company will cancel a car insurance policy, but not state the reason for cancellation in a notice to policy holders. This is why it is extremely important that car owners contact their auto insurance company right away. Most insurance company cancellations are related to non-payment; however, there is always a chance that the cancellation may be an error.
Before it was suggested that car owners contact their auto insurance company right away. In a situation like cancelled car insurance right away should not mean in a few days, but as soon as the cancellation notice is received. Insurance companies are required to provide adequate notice before canceling a car insurance policy. This time is typically one week or more; therefore, there is really no reason why car owners should not be able to contact their car insurance company before their car insurance policy expires due to cancellation.
If an auto policy was already cancelled and car owners were not aware that the policy was being cancelled they should still contact their car insurance company. If the cancellation was a result of non-payment many car insurance companies would be more than happy to reinstate the auto insurance policy as soon as payment is received. While there are some car insurance companies who are willing to give cancelled policy holders a second chance there others who may not be. Car owners should be prepared to start looking for another auto insurance company in the event that their old auto insurance company refuses to take them back.
If a car insurance policy is expected to be cancelled or it already has been car owners need to get a new insurance policy from another insurance company right away. When car owners go even one day without having car insurance they are labeled as having a gap in their car insurance. This gap is looked at by many auto insurance companies and it may even result in higher car insurance rates. In addition to high insurance rates, it is also possible that a state government may fine drivers for each day that they were not legally covered by auto insurance.
Once a new auto insurance policy has been obtained car owners should be able to put their cancelled car insurance policy experience behind them. One cancelled car insurance policy is not likely to have a large impact on a driver; however, insurance companies do take notice and closely examine the number of times that a driver may have had their previous insurance policies cancelled. The best way that car owners can prevent their auto insurance policies from being cancelled is by making sure their auto insurance bills are paid on time and that their driving record is clean.