Some Reasons for Cancellation or Non renewal of Auto Insurance in Whitman MA

by | Jan 29, 2016 | Insurance

Liability Auto Insurance in Whitman MA is required by state law. People often try to find ways to pay lower rates while not focusing on how to prevent a cancellation or non-renewal of a policy. It’s important to avoid those occurrences that can lead to a lapse in coverage.

Many companies providing Auto Insurance in Whitman MA do not have any grace period when a policyholder does not pay the premium on time. The policy is immediately canceled the day after payment is due. This might happen if the policyholder has an account involving making several payments on the full premium instead of paying it all at once. It also might happen at renewal time, since most car insurance policies renew automatically.

If the person has an insurance agent, such as the Johnson Insurance Agency, the agent typically will call or send an email or text to alert the customer about the cancellation. Usually the policyholder can rectify the situation by paying right away. However, if this customer starts to make a habit of paying late, the insurance company may eventually cancel the policy or refuse to renew it when the policy ends. Visit the website Website Domain to learn more about this particular agency.

Being convicted of driving under the influence of alcohol is likely to result in policy cancellation or non-renewal. If the company does renew the policy, the premium rates are certain to be substantially higher than they were before. A company might not renew a policy if the driver were to receive more than one ticket for traffic offenses within a certain time frame, or if he or she caused a collision.

If someone ever does have the auto insurance canceled or receives a notice of non-renewal, it can become a bit harder to obtain affordable coverage from another company. That’s especially the case if the individual has been convicted of DUI. Insurance companies want to know if people applying for coverage have ever had a policy canceled or not renewed, as those incidents indicate that a person is a higher risk. He or she may be a higher risk for not paying premiums on time or for causing an accident. That may lead an insurer to turn down an application or to charge a higher premium. You can also visit them on Website Domain for more information.

Latest Articles

Categories

Archives