Reasons People Lose Their Auto Insurance in Murrieta, CA

by | Dec 27, 2023 | Insurance agency

For various reasons, the rumor that drivers can be dropped at any time by their auto insurers is still making the rounds. In truth, there are limited reasons why an insurer can drop a customer.

Traffic Violations

A driver who has many accidents and tickets on their driving record is usually afraid to lose their Auto Insurance in Murrieta CA, and those fears may be legitimate. While an insurer is not likely to drop someone after their first accident or citation, a history of poor driving can make a person a higher risk than their insurer is willing to take.

Every insurer handles such violations differently. Some companies substantially raise rates, ensuring that the customer goes elsewhere. Others wait until the current policy expires to decline a renewal.

Insurance Fraud

When a person buys an insurance policy, it’s important that they answer questions as accurately and honestly as possible. If an insurer discovers a customer has lied on an insurance application, they may consider it fraudulent and cancel the policy. Insurance fraud is criminal, and an insurer could immediately cancel coverage instead of declining to renew.

Non-Payment of Premiums

Failure to make timely payments is a primary reason why insurers drop customers’ coverages. This isn’t what usually happens because a check got delayed by a day or two as most companies offer a grace period. If a person doesn’t pay their premium on time or by the grace period’s end, their coverage may be revoked.

Totaling a Car

After a person is in a car accident, and their vehicle is totaled, the policy typically ends because there is nothing left to insure. In some instances, the vehicle is more relevant than the policyholder, and the person may be able to go through the same company once they buy another vehicle.

In the end, it does not matter why an insurer drops a customer-;it only matters that the customer finds new Auto Insurance in Murrieta CA. Depending on the area, a driver could face legal issues by being uninsured. There can be substantial fees for coverage gaps, and drivers should try to buy a new policy as soon as possible.

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