It’s what you never want to hear from an insurance company: “We cannot cover your vehicle any longer.” Auto insurers drop policyholders in two ways: cancellations and non-renewals. A non-renewal occurs when a policy ends, and in some cases, it has nothing to do with you. Cancellations are more severe and they occur when an insurer stops coverage before the end of a policy’s term. If you’re in either situation and you need auto insurance in Chicago, here’s what you should do.
After a Non-Renewal: Shop Around
An insurer may decide not to renew a policy for reasons other than your driving history. For instance, it may eliminate certain coverage types or elect to write fewer policies in your area. Regardless of the reason, the insurer will notify you ahead of time. When you receive this notification, start looking for coverage with other companies.
Cancellations: Be Ready to Pay More
A cancellation is more of a problem because it typically comes as a result of your behavior. An insurance company may cancel your policy if:
You misrepresent yourself on a coverage application
Your license is suspended or revoked
You’re convicted of a DUI
You have numerous violations or accidents
You don’t pay your premium
Again, the insurer must give you notice, and the company must refund your unused premiums. If you get such a notice, you may find it hard to get coverage and you’ll have to go to the non-standard market. A non-standard policy may carry a premium that is 10-50% higher than that of a standard policy.
If this happens to you, you shouldn’t let a non-renewal or cancellation make life harder than it already is. Driving without auto insurance in Chicago, even for a day, isn’t an option. Follow these tips to stay covered and remain on the road.
