Information for High-risk Drivers on Insurance Coverage
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. The policy is normally terminated before the policy period ends and within the first two months. The first reason for the cancellation could be due to misinterpretation. You can also have your policy canceled having given the information in a wrong way during application. The other reason for cancellation of your insurance policy is non-compliance. The other reason for the cancellation is non-payment of premiums. When you are at fault in every claim, it can lead to cancellation of an insurance policy.
You need to also know non-renewal as a high-risk driver. 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. Acceptable reasons include bad driving records and driving under influence. Non-compliance and late payments also leads to non-renewal. You can also have non-renewal as a result of fraudulent claims and even if you are involved in many accidents and being the one at fault.
Get to also learn about the meaning of a high-risk driver. There are numerous explanations where it could be one who is at high-risk as you compare to another. You can as well explain a high-risk as one who cannot get insurance coverage. It can also be understood as one who can only apply for car insurance after getting a certain form from the government. There are numerous reasons as to why these drivers do not get the best rates. One is having a poor credit score. Traffic violation record is another reason. You do not get the best rates also if you are a teen driver. It could also be because you do not own a home that is an indication of stability.
The number of accidents that lead to being dropped is not specific as it depends on the company’s policy. 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.