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Best Auto Insurance Companies 2021
With so many choices for auto insurance companies, it can be difficult to know where to start in finding the right auto insurance. We’ve evaluated insurers to find the best auto insurance companies, so you don’t have to.
A canceled auto insurance policy is different from an auto insurance policy that is not renewed. A non-renewal occurs when your insurance company terminates your policy at the end of the coverage period. Cancellation usually occurs when your insurance company cancels coverage during the term of the policy.
Reasons for auto insurance cancellation
Other possible reasons for canceling an auto insurance policy are:
- Your driving record is bad, such as too many responsible accidents or movement violations over a period of time, such as 36 months.
- Your driver’s license or registration is suspended.
- You have made a fraudulent claim on your auto insurance, such as giving false information about an auto insurance claim.
- You have been convicted of a crime like driving under the influence.
- You drive for a ridesharing company like Uber or Lyft and did not notify your insurance company.
- You have a medical condition it makes you a dangerous driver. For example, in Illinois, an auto insurance company can cancel your auto insurance if you are diagnosed with epilepsy and your doctor does not provide proof that your epilepsy will not affect your driving.
Reasons for not renewing auto insurance
Non-renewal occurs when the insurance company decides not to maintain coverage when the policy expires. Here are the common reasons for non-renewal:
- Your insurance company decides to stop doing business in your state, or sell fewer policies in your area.
- You made late car insurance payments.
- You put false or fraudulent information on your insurance application.
- You have been the victim of several movement violations or have caused car accidents.
Notice of non-renewal or cancellation of automobile insurance
If your policy is not renewed or is canceled, your auto insurance company will send you a notice with an explanation. The time frame depends on state laws and circumstances, but you usually receive notice 30 to 60 days before the cancellation date. For non-renewal, it is usually 10 to 75 days.
How to get auto insurance after a non-renewal or cancellation
After receiving notice that your policy is going to be canceled or discontinued, you will want to act quickly to set up new coverage before the termination date. What is the rush? Your insurance company is required to contact your state’s Department of Motor Vehicles once an auto insurance policy is canceled.
If you are unable to find new insurance coverage, your state may require you to re-tag your car and relinquish your driving privileges.
You also want to avoid an interruption in coverage or an uninsured period between policies. If you can’t get a new policy quickly and find yourself without insurance, you can’t legally drive. If you drive without insurance and cause an accident, you are responsible for paying medical bills and repairs.
If you are caught driving uninsured you can also incur penalties and fines. Plus, you typically pay more for auto insurance after a break in coverage because carriers view coverage gaps as high-risk behavior.
Here’s how to get coverage after a non-renewal or cancellation notice while saving money:
Determine sufficient coverage. It’s a good idea to purchase sufficient liability insurance to match the value of your savings, home, and other assets. Avoid purchasing only the minimum liability coverage necessary to legally drive in your state, as that may not be enough to cover even minor accidents.
Look for auto insurance companies. You don’t want to choose a company based on price alone. Customer service and complaints handling are also important. Find the best auto insurance companies for your shortlist by researching rankings and reviews.
Shop for comparison and ask for discounts. Compare auto insurance quotes from several companies for the same amounts of coverage. This is the best way to save money because otherwise you won’t know what companies are charging.
Even if you have multiple infractions, a DUI, or multiple accidents, you will find that some companies charge significantly less than others. Make sure you get all the driver discounts you’re entitled to.
Buy your policy and set the effective date of the day your old policy expires. Make sure your new policy will be in place when your old policy ends. This way you avoid loss of coverage and you won’t be driving without insurance.