Information for High-risk Drivers on Insurance Coverage
What most drivers should ask themselves is if it is possible for an insurance company to drop them. The answer to this question is that it is possible of which it does not happen often. Insurance policy is canceled if the risk leads to suspension of license where the company waits until the policy is due for renewal. Below are detailed information for high-risk drivers.
First to know is the cancellation of an insurance policy. The policy is normally terminated before the policy period ends and within the first two months. Interpreting wrongly is among the many reasons that could lead to cancellation of your policy. Presenting information in a wrong way when applying could also lead to cancellation. The other reason for cancellation of your insurance policy is non-compliance. You can also have your insurance policy canceled if you do not pay your premiums. When you are at fault in every claim, it can lead to cancellation of an insurance policy.
Non-renewal is another thing very important to know about non-renewal. Here, an insurance policy drops a driver after the policy period has ended. Reasons for non-renewal are also quite numerous although there are those that are not acceptable. Age, race, marital status, color occupation, and physical handicap are not acceptable. Reasons that cause non-renewal are like having a bad driving record and also driving under influence. The other reasons are like non-compliance as well as late payments. You can also have non-renewal as a result of fraudulent claims and even if you are involved in many accidents and being the one at fault.
Apart from the above-discussed information, you should also know who a high-risk driver is. The first understand of a high-risk driver is one who is at high-risk compared to another driver. Another explanation is one who is not in a position to receive insurance coverage. The other explanation is one who has to get a unique form from the government to apply for car insurance. High-risk drivers do not get the best rates mostly because of many reasons. It could be one, because of a poor credit score. It could also be as a result of traffic violation record. You do not get the best rates also if you are a teen driver. Another reason is having no home which is believed to be an indication of being stable.
The company’s policy determines whether or not to drop you as there are no specific number of accidents. You cannot have your policy renewed if you are not careful. Considering the discussed information, you get to know more as a high-risk driver.