Can I get dropped by car insurance?

We’re all required to have car insurance as drivers in Georgia, but that doesn’t mean it’s always easy to find a carrier. From policy costs to getting the right coverage, it’s a process to find the right insurance company. Even after all that, what happens if you end up with a non-renewal notice? Thankfully, it’s not the norm to get dropped by car insurance, but you should be aware of what factors can increase your risk.

Common reasons your insurance carrier might drop you

There are a few general reasons a car insurance provider might consider dropping you from coverage. None are a guaranteed way to get a non-renewal notice, however, they can increase your chances, especially if you’re guilty of more than one of these.
  • Getting into accidents in a short window where you’re at fault
  • Filling too many claims (this can also raise your rates)
  • Having your license revoked
  • Being convicted of a DUI
  • Paying your premium late or not at all
  • Committing insurance fraud

How many accidents can you have before car insurance drops you?

Each insurance company has their own criteria of what constitutes too many accidents. When you hit it, there’s a higher chance you’ll be dropped by insurance. Thankfully, insurance won’t drop you after filing a claim from one accident, and typically won’t be concerned with multiple claims that happen more than 3-5 years apart. Although the timing of car accident-related claims in relation to each other does matter, insurance companies also often take into consideration whether you were the at-fault driver, giving you more leeway when accidents are not your fault.

Using uninsured motorist or Med Pay coverage

Having these two coverage add-ons, and using them, will not increase your chance of losing your car insurance. An uninsured motorist policy ensures you’re protected from financial obligations if you’re in a hit-and-run accident or any other car accident where the other driver is at fault and doesn’t have insurance. You can also have underinsured motorist coverage, which protects you if the other driver doesn’t have enough insurance. With both of these policies, you can file a claim with your own insurance company.

Med Pay helps cover medical expenses following a car accident no matter which driver is at fault. This is another additional piece of coverage you can have as part of your car insurance policy that you can use as needed.

Using either of these coverage options won’t generally impact your risk of losing insurance coverage or cause rates to increase. Especially if you’re not deemed the at-fault party in the car accident, your rates should not go up since this insurance is in place to protect you.

What to do if you receive a non-renewal notice

Georgia Law requires insurance companies to send a formal non-renewal notice should they decide to discontinue your coverage. This letter must contain the reason why they’re not renewing the policy. You then have 15 days to request a review of the non-renewal. If you do request a review, and the outcome is you’re still going to be dropped by your carrier, you’ll need to begin the search for a new one. Having the information as to why your original policy was discontinued can help in this process.

It’s different if your car insurance gets cancelled

Having your car insurance cancelled is different than being dropped by your provider. That process brings your coverage to a natural end; there’s no penalty and you have the ability to appeal the non-renewal. Having your insurance cancelled can come with a penalty. It also means you have less time to rectify the situation either by talking to your provider to address any issues or finding a new one.

Common reasons that can lead to getting your insurance cancelled include failing to pay for coverage, getting your license suspended or revoked or not having proper vehicle registration.

Reasons for being refused car insurance

On the flip side, if you currently don’t have car insurance, there are some reasons why you might not be able to get it. The most common reasons for being refused car insurance are:
  • Your driving record. In Georgia, you may be considered uninsurable if you have multiple moving violations, a DUI conviction or a suspended license.
  • Your age. The younger you are the more at risk for accidents according to insurance companies.
  • Your mileage. Some insurance companies hesitate to insure drivers who frequently go long distances.
  • Your stats. Where you live and what type of car your drive can also come into play. This is especially true if you live in an area with a high crime rate or drive a high-end sports car.
  • Your insurance history. If you’ve had your insurance canceled in the past, it might be harder to get new coverage.
If you find yourself struggling to get car insurance, make sure you know the reason for your denial. It might be something easily fixable, so you’re able to reapply. If it’s more complicated, you may need to seek help in finding the right provider.

Working with your insurance company after a car accident

Regardless of whether you’re concerned about a car accident leading to you losing your coverage, working with insurance companies to file claims properly can be challenging. You want to get the compensation you deserve, while the insurance company is more focused on protecting their own interests. Partnering with the right legal team after an accident can save you from this struggle.

At Watson Injury Law, we know how to handle insurance companies and will do so on your behalf. We’ll fight for the compensation you deserve so you can focus on what’s really important, taking care of yourself. Contact us today for a free consultation.

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We want to connect with you and help you during this challenging time. If it’s more convenient to communicate via email, please reach out to us at info@watsoninjurylaw.com.