Many people keep asking about what happens if insurance policies cancelled. Those who have been in the first time having auto insurance might be surprised. For those who have been held this insurance might not too surprised. However, the most important thing to do is to act quickly.
You might be wondering why your insurance being cancelled. You might not have any idea about this. Yet, forget about it. If you don’t want to lose much more money, act quickly when you have notice from company that they will cancel your policy.
Understanding Reasons Why Your Insurance Policy is Cancelled
You shouldn’t assume that when insurance policies cancelled you can get another insurance from another company. Of course you can do it. However, it will be more difficult to find auto insurance from different company. They have already got information that you insurance has been cancelled in the past. The company will not easily accept your application.
Therefore, when you got notice about canceling auto insurance form the company, please act as quick as possible. Find out first what make your insurance policies are cancelled. There are three main factors that cause the policy is being cancelled?
1. Too Many Claims
Please try to review about this. Are you claiming so many times? Remember how many times you claim this year? Five or six times? Or possibly more than that. The company might cancel your auto insurance policy when you claim too many times.
It is related to particular change information that you don’t give a report to the company. For example, you move to a new house. Of course, you have a new address. If you miss to give a report to the company, it is possible that insurance policies cancelled.
Don’t ever try to do a crime with your car. If you do so, your auto insurance policy will be possibly cancelled. It is due to the fact that the company doesn’t want to give coverage for those who do certain crime.
If you think one of those factors make the company cancel your policy, you have to do something quickly. It is not only bad experience but also embarrassing. When your insurance policy is cancelled, you might be very hard to find another insurance company later. It is due to the fact that when insurance policies cancelled, the insurance credit score gets impact.
Try To Reinstate Your Cancelled Auto Insurance
The thing that you have to do right now is how to reinstate a cancelled car insurance policy. Is it possibly? Actually, there is no sure way that your insurance company will keep you to be their client. However, it is no wrong at all if you try to work with them and make negotiation.
Here is what you have to do when your insurance company wants to cancel your policy:
Try To Contact Your Insurance Company
First of all, you have to contact the insurance company. Try to get information as much as possible about the reason why they want to cancel your insurance policy. Don’t try to argue. It is better to listen what they say. If you try to argue, the company will be upset and they will truly cancel your policy. When you only get insurance policy cancelation notice, it means that there is still a chance for improvement. Therefore, try to be calm when you contact the company. You need to listen more than argue.
Asking for Solution
When you have already known the reason why your insurance policies cancelled, try to ask for solution. Usually, when you claim so often because more than twice your car is robbed, the company might suggest you to install more security alarm. Just do what they suggest.
The thing that you have to do in this situation is to fulfill what they want. Make them trust to you and then they will not cancel your auto insurance policy. This is what you need to do right now.
Working with Broker
When you are in a bad situation because too many reason the company has to cancel your insurance policy, you might need a help from a broker. Call a broker who has been dealing with several insurance companies.
You might need to give extra money to the broker. However, you shouldn’t worry about it. A professional broker usually has certain tactic how to low auto insurance rate. Therefore, you might give a fee for a broker yet your auto insurance premium is cheap.
So, now you know what you have to do when your insurance policies cancelled, don’t you?