10.
What do I do if my insurer cancels or refuses to renew my
auto insurance policy?
Even "good" drivers can be dropped by their
carrier. Reasons range from a "drinking while driving"
violation or other serious violations (that make you a high
risk) to situations outside your control, such as when
insurers in your state are suffering severe business losses.
Overall rises in claims or losses can cause insurers to
become highly selective in determining whom they can afford
to insure. If you are licensed to drive, by law, you are
probably eligible for insurance. However, your options for
new coverage may be limited. Each state has created and
regulates a market of last resort for those who cannot
otherwise obtain coverage. These groups have various names,
depending on the state you live in, such as "assigned risk"
plans or the "residual market." Your independent agent will
know more about the particulars in your state. Regardless of
the reason you were dropped, you need to act immediately to
get a policy. Under no circumstance should you drive your
vehicle without insurance. Call your agent to help you find
new coverage. If you do find yourself in the residual
market, the price may be higher but it may be your only
alternative in maintaining your freedom to drive.
