In this edition of Law Talk, attorney Anna Czaples discusses something that many drivers have thought about at one time or another. Can my auto insurance company drop my coverage?

The simple answer to this question is, yes, they can choose not to insure you as a client. They typically go about this in one of two ways. They can choose to do a non-renewal, where they will not present the option for you to renew your policy when the current contract expires. Or they can cancel your policy.

Some of the reasons an insurance company may choose to non-renew your policy are:

  • You have multiple accidents within a 3-year period
  • You have too many insurance claims
  • The type, make, and model of your vehicle

Some insurers have made the decision to non-renew certain makes of vehicles due to the risks associated with the way they are set up. Recently in the news, many Kia’s and Hyundai have been stolen due to a Tik Tok challenge, in part due to the lack of an “immobilizer” in the car’s system. Attorney Czaples states that in Philadelphia that Hyundai and Kia made up 60% of car thefts. The car manufacturers’ response may help negotiate these non-renewals, but that is up to the insurance companies.

The other type of dropping of policies that some insurance companies may use is cancelations. Typically an insurance company may drop you via cancelation if:

  • You get a DUI or DWI
  • You lose your driving privileges, which can happen if you collect 11 points or more in an 18-month period.
  • Not paying your premiums
  • Insurance fraud

What can you do if your insurer has chosen to either non-renew or cancel your policy? You typically can go with another company. Typically insurance companies offer comparable coverage.

Be sure to check back each month as Anna Czarples discusses different topics associated with personal injury or other legal topics as you decide. If you have a question that you would like to see potentially answered during Law Talk, please email it to Anna Czarples is based out of Corning and works with clients from around the region.