One of the questions that all high-risk should ask themselves is, can an insurance company drop you? The answer being yes although it does not happen more often. Insurance policy is canceled if the risk leads to suspension of license where the company waits until the policy is due for renewal. Read on for more information concerning high-risk drivers.
As a high-risk driver, you ought to know more about the cancellation of your insurance policy. Within the first two months, you can get your policy terminated. Interpreting wrongly is among the many reasons that could lead to cancellation of your policy. Presenting information in a wrong way when applying could also lead to cancellation. Non-compliance is another reason for cancellation of an insurance policy. Non-payment of premiums also could lead to cancellation of an insurance policy. An insurance policy can also be canceled when in all claims you are at fault.
The other helpful information for a high-risk driver is non-renewal. It is where you are dropped by the insurance company at the end of the policy period. Reasons for non-renewal are also quite numerous although there are those that are not acceptable. Age, race, marital status, color occupation, and physical handicap are not acceptable. Reasons that cause non-renewal are like having a bad driving record and also driving under influence. Reasons like late payments and non-compliance also cause non-renewal. Non-renewal could also be due to fraudulent claims or maybe being involved in numerous accidents where you are at fault.
Get to also learn about the meaning of a high-risk driver. One of the explanations is a driver who is at high-risk in comparison to another driver. It could also be explained as a driver who does not qualify for insurance coverage. You can as well understand high-risk driver as the one who requires a form from the government for them to apply for a car insurance policy. High-risk drivers do not get the best rates mostly because of many reasons. When you have a poor credit score, you do not get the best rates. The other reason being traffic violation record. It could also be because you are a teen driver. It could also be because you do not own a home that is an indication of stability.
Accidents that cause a company to drop you are not specified since the company’s policy will determine this. You cannot have your policy renewed if you are not careful. Considering the discussed information, you get to know more as a high-risk driver.