Can Auto Insurance Companies Drop You?

Many car owners are nervous after getting into their first accidents—they wonder if their auto insurance will drop them. The good news is that while they can, they probably won’t. Car insurance companies don’t usually cancel policies in Tampa, FL, unless the accident was due to your own DUI or DWI.

However, there are a few other situations in which your car insurance company may drop you. Here’s a list of when that might happen:

  • Health issues: If you have any health issues that could make driving unsafe, your car insurance provider may choose not to cover you. Epilepsy is just one example of a dangerous health condition. However, this would require your doctor to notify the DMV that you can’t drive with your current health conditions—otherwise, it’s unlikely that your car insurance company will cancel it. If you do find yourself with driving restrictions, you can appeal to the DMV. Consider whether you truly are capable of driving safely, though—most doctors don’t suggest driving restrictions unless a patient poses a serious danger to themselves or others.
  • Accidents in the first 60 days: Some states allow insurance companies to cancel policies if you have an accident in the first 60 days of coverage. That doesn’t mean they will, but it illustrates why it’s so important to understand the limitations of your coverage.
  • Multiple claims in a short period: As you know, insurance companies make money by calculating risk—that is, they determine how likely it is that you will get into an accident, then charge premiums accordingly. They’re betting on the fact that you (and other customers) won’t need to file a claim, so that when they do have to pay out, they’re still making money. That means that if you file multiple claims in a short period of time, you’ll probably look too expensive to keep around—even if the damage wasn’t your fault.
  • High-risk drivers: Speaking of an expensive policyholder, high-risk drivers are more likely to get dropped. If you’ve got plenty of speeding tickets, or have been in multiple accidents, you’re probably costing your insurer more money than they want to pay. Usually, they’ll wait until your plan is set to renew and choose not to extend coverage.
  • The company is closing: Occasionally, a car insurance company may choose to close or stop offering coverage in your area. In that case, you may be dropped through no fault of your own.
  • Fraud: One of the most common reasons people get dropped from their policies is fraud. Don’t try to defraud your insurance provider—if they find out (and they have a vested interest in doing so), you may be liable for more than you bargained for.
  • Payment default: Finally, clients can get dropped for defaulting on their insurance payments, so be sure to keep up with them faithfully.

If your car insurance provider in Tampa, FL has dropped you, Affordable Car Insurance Tampa can help. Call us today to learn more about our policies and find a plan that works for you.