Can an auto insurance company cancel a policy after just one claim?

Making a claim on your auto insurance policy is not unusual. You can make a claim whenever you get into an accident or face a situation that is covered by the policy. When your policy is canceled after making a claim, it may seem that the insurance company is refusing to provide coverage because of your actions. Depending on the situation, it may or may not relate to your claim.

Timing and Non-Renewal

There is nothing more worrisome than seeing a cancel policy notice in the mail. You may wonder why your policy is being discontinued. Depending on the timing, it may or may not relate to your claim.

A non-renewal notice is not the same as a cancelation. It means that the company is choosing to discontinue your coverage when the policy is expiring and you will usually receive a notice in the mail roughly 45 to 60 days before the expiration of your current coverage period.

Cancelation can occur at any time, but it is not usually related to your claim.

When Companies Cancel Insurance

If your policy is canceled in the middle of a term, then it usually relates to two main problems: inaccurate information on your application or missed payments.

It may relate to your policy if your insurance company suspects that you have made a fraudulent claim or that you have exaggerated the damage. Some companies may also cancel your policy at the beginning of an insured period and may not have a specific reason.

Canceling a policy after making a single claim is not common, but it can happen in some situations. The reasons for the cancelation can vary and may not relate to your claim. Contact us to speak to an agent for more details.