For home and auto insurance, people frequently shop around and compare rates; if they find a better offer, they can decide to cancel their current policy and move to a different provider. Can insurance companies, however, decide to terminate a policyholder’s coverage? To put it directly, yes, they can. Let’s examine some particular situations where your auto or homeowner’s insurance may be canceled, along with what to do if that happens.
Can An Insurance Company Cancel You In PA?
When you purchase an insurance policy, you enter into a legal contract between you and your insurance company. Your insurance company agrees to offer a certain level of coverage that may be utilized in situations defined in the contract, and you agree to pay a pre-determined amount in exchange.
In the event that the agreement is broken, insurance companies have the power to end the contract and remove your coverage.
What Could Get My Insurance Denied Or Cancelled?
Here are some instances in which an insurance contract can be breached, and your insurance provider may be able to cancel your coverage:
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Failure To Pay Your Insurance: If you don’t make your insurance payments on time, insurance firms have the ability to cancel your coverage, just like in many other businesses. If your payment is late or insufficient, you will often receive a warning; but, if you fail to make payments for some time, the insurance provider may decide to cancel your coverage.
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Fraudulent Activity: Insurance fraud occurs when you intentionally cause damage to your home or car in order to submit a claim, or when you are discovered to have lied on your insurance application. Fraud is not tolerated by insurance companies, and your coverage will be promptly canceled. Additionally, Insurance fraud is also highly illegal, and if you are suspected you could be reported to law enforcement for investigation.
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Too many accidents or claims: Insurance companies may view you as high risk if you file numerous claims throughout the course of the year. Your insurance provider could decide to not renew your coverage for the following year, or they could simply increase your premiums instead.
Less frequent reasons include having a DUI or other adverse driving record, making unsafe changes to your property (such as unpermitted home renovations or excessive vehicle modifications), or the company determining that you are too risky as a customer, and that they should no longer cover you.
What Should I Do If My Coverage Got Canceled?
If your auto or home insurance coverage is canceled for any of these reasons, there are a few steps you should take as quickly as possible:
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Get different coverage: In Pennsylvania, and in almost every other state, driving without auto insurance is illegal. You must have proof of insurance coverage to be able to get out on the road. Even if this alternate coverage is only temporary while you negotiate with your previous provider, it can save you from having to pay for a costly accident, and can keep you from legal coverage. For homeowners insurance, damage can happen at any moment, so you do not want to be left unprotected for long.
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Renegotiate your policy: If your policy was canceled due to a high number of claims or increased risk, your provider may still want to keep you, just at a higher rate. Renegotiating your deductible and premium can allow you to keep your coverage, and maintain a good relationship with your provider.
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Be open and honest: More often than not, insurance companies want to help you out. By taking the time to explain your situation, insurance companies will have a better understanding of what’s going on and may be better able to find a solution that works for your situation.
Looking for new Insurance coverage? Choose Strickler Insurance
Have you been dropped by your insurance company recently? Strickler Insurance has been offering quality insurance coverage in Lebanon, PA for over 160 years. Whether you are looking for automobile, homeowners, renters, or other policies, our knowledgeable staff of advisors is ready to assist you. Contact us to learn more about how we can get you covered and protected again today!
