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Whether you’re expecting it or not, getting that letter or email stating that your insurance policy has been canceled isn’t a good feeling. Not only that, but a lapse in coverage could leave you and your dependents unprotected in case of an unexpected emergency.
While there are some situations where you can’t avoid having your policy canceled, there are also preventative measures you can take to make sure your policy stays intact and you don’t see a rise in your insurance premiums or deductibles.
Try to avoid these situations to keep your policy from being canceled:
If the insurer discovers that there is incorrect information on your insurance application, it could be grounds for termination. If the insurer determines, for whatever reason, there are inaccuracies within the application information, it may be reason for them to terminate your policy. To avoid this happening, make sure that when you fill out the insurance application all of the information is up to date and completely accurate.
While it might be tempting to fudge a bit of your driving record, for example, with the hopes of paying lower premiums and deductibles on your car or truck insurance, it’s not a good idea. That type of information is easily accessed by insurance companies, who will do their homework before issuing a policy.
To avoid cancelation due to incorrect information, make sure you fill out your application honestly.
Most of us have struggled to pay a bill at one time or another. It happens. How you handle a late payment, however, can mean the difference in whether your policy is at risk for cancellation or not.
If you know you’re going to have trouble making a payment, it’s necessary to contact your local insurance agency and notify them that the payment will be late, and when you intend on making the payment. Most companies will work with you if there are extenuating circumstances. However, if there’s a pattern of late or missing payments to your insurance agency it might be grounds to cancel your homeowner’s insurance, renter’s insurance, etc.
Make sure you communicate with your insurer if you’re going to have a problem making a payment to help make certain your policy doesn’t get canceled.
Is there a reason your insurer might feel that the risk assessment to insure you has changed or increased? If an insurer comes across information which leads them to believe (with evidence) that the insurance risk has changed or increased, then it could be grounds to cancel your insurance policy.
What should you do if your insurance policy does get dropped?
If, worse case scenario, your insurance policy is dropped, then it’s important to take action immediately. Gaps in your insurance coverage could mean you, your dependents, or your property are at risk.
If you find out your policy has been canceled, first contact your insurer and make sure you fully understand why your policy was terminated and what recourse you might have to get it reinstated as soon as possible.
If having your policy reinstated isn’t a possibility, it’s important to contact another insurer you trust and initiate the process of getting home insurance, renter’s insurance, medical insurance, etc. in place as soon as possible to avoid any gaps in coverage that could result in liability issues, financial setbacks, etc.
When signing up for your new policy it’s important to be fully transparent with your insurance agent about your previous insurance policy and why it was terminated. Having a canceled policy might impact the ease with which you’re able to get signed up for a policy or might mean you have to pay higher rates.
Sometimes a cancelation of your policy has nothing to do with things you did or didn’t do. In some instances, your insurer might stop coverage in your area, for example, and your policy won’t be renewed or will be canceled.
Do you feel that your policy was canceled unfairly or wrongfully? Mistakes and discrepancies do happen, so it’s important to have an understanding of your policy. If you receive notice that your insurance was canceled—depending on the reason—you should go over your paperwork, any past claims and your payment history to make sure that everything is accurate, up to date, and there aren’t any issues. If you feel you’ve been unfairly terminated, it’s important to have your information organized to back up your claim when you contact your insurer to dispute the termination of your policy.
Looking ahead after a policy termination, perhaps there are actions that could be taken to ensure your policy isn’t canceled in the future.
As a trusted local insurance agent, Bosworth and Associates in Tyler, Texas, understands the ins and outs of policy terminations and is here to help.
If you’re concerned or have received a cancelation notice from your insurer, reach out today, get answers to your questions, and make sure there aren’t any lapses in your coverage.
