Yes, drivers can be dropped by their auto insurance companies for a number of reasons. The basic relationship between you and your insurance company is that you receive protection in the event of a loss in exchange for premiums. Your auto insurance provider will assess the risk you pose as a client and will set your premium rate based on the amount of risk you pose as a driver. In most circumstances, more risk just means you’ll pay more in premium, however, when a driver possesses an unacceptable amount of risk, they can be dropped.
Being dropped as a client will put you in an unsettling place. Unlike homeowners insurance, which is always recommended but not always required, an auto insurance policy is required by law in the state of Texas and in most other states. Beyond potential legal fees and issues that can arise without having proper insurance coverage, the financial ramifications following an accident can be substantial. Labor and material costs continue to rise. These costs can even pale in comparison to the rising costs of legal counsel and medical expenses. The bottom line is, if you are dropped by your auto insurance provider, you’ll need to get back on track as soon as possible.
Understanding how you can lose your coverage and what your options are if you were to become uninsured will help you navigate these difficult times. As always, our agents are here to help you. Feel free to ask an agent if you are facing this predicament and enjoy our guide below to help you through the process.
Reasons Auto Insurance Companies May Drop Your Coverage
Many drivers may be surprised to learn that they can actually be dropped by their auto insurance provider, but there are many different reasons this can happen in Texas:
- Failing to make your premium payments.
- Making a fraudulent claim.
- Failing to register your vehicle.
- Having your driver’s license taken away.
These areas can open up a ton of problems for you in terms of keeping you protected. You can also find yourself losing coverage in the aftermath of certain scenarios, such as a drunk driving arrest leading to a suspended license, which can also result in unintended consequences.
Understanding Policy Cancellations and Non-Renewals
While getting dropped by your auto insurance may stem from specific events as listed above, there are other concerns that may cause you to lose your coverage. Lapsing your coverage is never a good idea and it will usually result in higher premiums when you do resign as well as leave you vulnerable to expensive accidents where you’ll need to face the liability without a financial safety net. Take a closer look at the differences between a cancellation and a non-renewal:
|Your auto insurance policy is canceled in the middle of your term. You are dropped as a client and will find yourself tasked with needing insurance immediately.||Auto insurance companies that have that they no longer wish to cover you as a customer. Your policy will remain valid until the end of its term, however, you’ll need to find a new company once it is up.|
|A policy cancellation in the State of Texas can occur for the specific reasons noted above.||Technically, your insurance provider may choose to not renew you at any time, though this is usually done for specific reasons. Some of the most common include an excessive amount of insurance claims, moving, DWIs and/or other tickets, etc. Failure to communicate is also a reason for non-renewal, according to the Texas Department of Insurance (TDI).|
|Being dropped from your insurance provider can make things difficult as other insurance providers may be wary of taking you on as a client in the event they too may need to drop you. Beyond being a red flag to other companies, you are also on a much shorter timeline to find immediate coverage to avoid breaking the law or becoming liable.||Though not ideal, and each situation is different, non-renewals are usually better than being dropped altogether. You’ll have time to find a new brand to enroll with as well as avoid a lapse in coverage.|
Can I Fight My Auto Insurance Company if I’m Dropped?
If you dropped by your auto insurance provider, you should contact them immediately. You may be able to fight such situations, but it all depends on your personal scenario. For example, if you are not renewed because you purchased a different type of vehicle, you may be able to enroll in a different coverage option, however, someone with too many DWIs may be forced to seek protection elsewhere. Stay calm, communicate, and then explore your options based on the information you receive from your previous provider. Should there be no way to remedy the situation, you’ll need to avoid driving until you are covered and begin your insurance journey all over again.
How to Save Money After Your Auto Insurance Company Drops You
Being dropped by your auto insurance company doesn’t have to be the end of the world. While a rate increase can be discouraging for many drivers, you can still save money and gain the coverage you need:
- Comparison shopping can lead you to the best rate on the market and help you find the right car insurance brand for your needs.
- Bundling opportunities are important for any driver and if you can combine coverages such as your home and auto together, you’ll receive a dip in the price of your premium.
- Believe it or not, even if you are dropped by your insurer, you may be eligible for discounts. There are many different types of discounts and while no driver qualifies for all of them, most drivers will qualify for at least one of them. Speaking with an insurance agent can help you find the right discounts for your coverage needs.
These tips are good for any driver, however, comparison shopping becomes even more important for dropped motorists as your options may already be limited. When you are already facing a narrower selection of coverage providers, comparing a range for brands can help you not only get the best coverage for the lowest price but also identify the auto insurance providers capable of taking you on as a client. Everyone deserves a second chance, and since 2005, the team at Freedom Insurance Group has been helping drivers just like you gain such opportunities.
Our network of over 25 top-rated insurance brands can help you find reliable, affordable auto insurance companies to protect you and your vehicle even if you’ve been dropped by another insurance provider. Combined with our unmatched level of customer service, as our client, you’ll receive the peace of mind you need, the coverage you seek, and the savings you deserve. It’s no secret that being dropped can cause your premiums to increase, but we work hard to keep such if any increases to a minimum and secure you with the right insurance policies. Contact us today to get started or use our free auto insurance quote tool.