10 things that could see your car insurance voided – here’s what to watch out for

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Canceling CAR insurance is inconvenient and results in higher policy expenses down the road.

But you can avoid this unfortunate scenario with careful planning.

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If your car insurance is cancelled, your next policy will be more expensive than the previous oneCredit: Getty

Auto insurance companies usually send cancellation notices by mail.

A case of auto insurance cancellation will cause other insurance companies to consider you a greater risk.

The higher your risk, the higher your insurance premium.

Forbes reports that “the most common acceptable reason for cancellation is that you did not pay the premium on time.”

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Drivers can miss a payment due to financial hardship, as insurance companies can increase auto premiums from year to year.

Forbes reports that the recent pandemic has led insurance companies to deploy strategies to retain customers.

These strategies included:

  • Extend auto insurance grace periods
  • Offer payment plans
  • Temporarily suspend policy cancellations

Car insurance companies rely on a myriad of factors to assess your risk.

Giving an insurance company false or incomplete information is a one-way ticket to having your policy voided.

Drivers cannot disclose specific information in an attempt to save money on their policy.

A similar case involves drivers making a fraudulent claim.

Fraudulent auto insurance claims will always lead an insurance company to void a policy.

Even if a driver is telling the truth, too many at-fault accidents, excessive traffic violations, crimes, and license suspensions are easy ways to void your policy.

Excess accident claims will result in cancellation of auto insurance policy

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Excess accident claims will result in cancellation of auto insurance policyCredit: Getty

Disclosure of medical conditions is vitally important when applying for auto insurance.

Drivers with certain medical conditions may be required to receive a certificate from their doctor confirming that they are fit to drive.

Sometimes a policy cancellation has more to do with the vehicle at hand.

States use car inspections as a way to ensure a vehicle is safe to drive.

Not having your car inspected or failing to pass an inspection poses a significant risk to insurance companies.

Drivers who use their cars for business purposes need a business auto policy, reports Forbes.

Commercial auto policies apply to industries such as ride-sharing services.

You may be able to call your insurer and resolve one or more cancellation issues as a last resort.

If your auto insurance is void, you should contact your state’s Department of Motor Vehicles (DMV) to complete all necessary paperwork.

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These DMV processes may include surrendering your license plates.

According to Kelley Blue Book, driving without car insurance is illegal in all US states except New Hampshire and Virginia.

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