What most drivers should ask themselves is if it is possible for an insurance company to drop them. It is possible for an insurance company to drop a high-risk driver although it does not occur often. Your policy is canceled by the insurance provider when the risk causes the suspension of your driver’s license although the company must wait until the policy is due for renewal. Below are detailed information for high-risk drivers.
Cancellation of the policy is one basic thing for any high-risk driver. 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. The other reason could be as a result of the wrongful presentation of information during application. Non-compliance is another reason for cancellation of an insurance policy. You can also have your insurance policy canceled if you do not pay your premiums. It can also be as a result of being at fault in all claims.
Non-renewal is another thing very important to know about non-renewal. Here, an insurance policy drops a driver after the policy period has ended. 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. A driver with a bad driving record and may be driving under influence are some of the reasons for non-renewal. The other reasons are like non-compliance as well as late payments. 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.
Apart from the above-discussed information, you should also know who a high-risk driver is. One of the explanations is a driver who is at high-risk in comparison to another driver. You can as well explain a high-risk as one who cannot get 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. Most of the high-risk drivers do not receive the best rates due to various reasons. When you have a poor credit score, you do not get the best rates. The other reason being traffic violation record. You do not get the best rates also if you are a teen driver. Not owning a home also as it is believed that you are not stable.
Accidents that cause a company to drop you are not specified since the company’s policy will determine this. Being covered does not mean that you should be reckless for your policy may not be renewed. Following the above details, you are able to learn more as a high-risk driver.
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