One of the questions that all high-risk should ask themselves is, can an insurance company drop you? The answer to this question is that it is possible of which it does not happen often. Having a risk that leads your driver’s license to be suspended will automatically lead to cancellation of your insurance policy and the company waits until the policy needs to be renewed. 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. Normally, you can have a termination of your insurance policy within the first two months. There are numerous reasons for this cancellation one being a 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. 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.
The other helpful information for a high-risk driver is non-renewal. It is where you are dropped by the insurance company at the end of the policy period. There are various non-renewal causes of which some of them 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. The other reasons are like non-compliance as well as late payments. Non-renewal could also be due to fraudulent claims or maybe being involved in numerous accidents where you are 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. It can also be understood as one who can only apply for car insurance after getting a certain form from the government. High-risk drivers do not get the best rates mostly because of many reasons. When you have a poor credit score, you do not get the best rates. It could also be as a result of traffic violation record. It could also be because you are a teen driver. It could also be because you do not own a home that is an indication of stability.
The company’s policy determines whether or not to drop you as there are no specific number of accidents. Being covered does not mean that you should be reckless for your policy may not be renewed. The above are some things to know as a high-risk driver.