What To Do After Your Car Insurer Drops You
Having car insurance is not only required in most states, but it is also the only thing you have for the protection of your vehicle. Keeping your car covered is vital at all times, so you might be worried about what to do if you receive a letter from your car insurance company that states they are dropping your coverage. If this happens, here are some steps you may want to take to.
Find out the reason
Most insurance companies will not simply drop their customers for no reason. Instead, there is usually a good reason for doing this, and the reason is generally because of something the policyholder did. For example, if you constantly paid your bill late and allowed your policy to lapse, your insurance company might be tired of this and may decide to drop you as a result. If you had too many tickets or claims, they may also decide to drop you because you are too much of a risk to them. Being charged with a DUI or DWI is another reason an insurance company may drop you. Chances are, you probably know why your insurance company dropped you, but if you do not, call them and ask.
Expect to pay more for coverage
After getting dropped, you will probably be considered a high-risk driver to any insurance company that you contact. Because of this, you will pay rates that are higher. Rates are highly determined by a person's risk level, and the best way to save money on insurance costs is by keeping your risk level low. If your risk level is high right now, there may be nothing you can do to instantly change this, but you can slowly change it by developing and following better driving habits.
Start getting quotes right away
Finally, it is important to know that the worst thing you could do after receiving a letter like this is procrastinate. Instead, you should instantly begin calling around to find out if you can get insurance through another company. You are free to contact as many companies as you would like to ask for quotes, and you should aim to get a new policy before your other one ends.
You should never drive your car if you do not have auto insurance coverage on it, as this could lead to a lot of additional problems. To get a quote for auto insurance after getting dropped, contact a company that offers high-risk auto insurance policies.