Essential Tips for Avoiding Auto Insurance Non Renewal

Home » Insurance » Essential Tips for Avoiding Auto Insurance Non Renewal

One of the main activities in the insurance business is determining a candidate’s level of risk. An agency will determine a candidate’s car insurance quotes based on its level of risk. As a result reckless drivers end up paying huge premiums. This is usually profitable for insurance agencies but there are certain situation when a candidate is considered to be so risky that the agency will deny him the possibility to renew its policy. Car insurance is mandatory therefore an auto insurance non renewal situation is quite complicated. There are of course companies who have guaranteed insurance acceptance but the premiums are so high that they may cost more than your car rates. In this article we will cover the main reasons for non renewal as well as how you can avoid these unpleasant situations.

[Not a valid template]

Car insurance non renewal policies
Each insurance company has its own internal policies and rules. While a certain candidate may be insurable for one agency, he could buy insurance from a less strict agency. Therefore, each company has different non renewal rules. The following scenarios are the most common situations when insurance agencies refuse to renew policies: an exorbitant number of traffic violation in a short period of time, to many accidents caused by the insurance candidate, driving under the influence, driving while intoxicated, to many accident claims and delinquent premium payments.

How to avoid car insurance non renewal
In order to avoid non renewal as well as high premiums the only thing that you must do is be a responsible driver. A clean driving record will not only guarantee a car insurance policy but it will also get you some competitive car insurance quotes. If you already have a bad record but you want to make amends you might be interested in a defensive or safe driving class. Furthermore it is essential to pay your premiums on time in order to avoid the possibility of losing your cover.

How to deal with car insurance non renewal
As we mentioned above a non renewal is a serious reason for concern given the fact that insurance is mandatory. If you are dealing with a situation like this you could try to challenge the car insurance agency’s decision to deny your renewal. In order to do this you must contact the consumer affairs division. If you fail to reach an agreement with your car insurance provider than you need to find another provider as soon as possible.