Cheap Auto Insurance in Provo Utah

Reader’s Question:

Is it possible for car insurance company to cancel or non-renew a policy after its inception date? What are usually the reasons for insurance companies to do this? I got my car insurance in Provo, UT.

Tara

Provo, UT

Yes. There are cases that insurance companies cancel a policyholder’s insurance after it has been issued. Many state insurance regulators have set restrictions on when and why an insurance policy can be canceled after its inception date. For example, in the state of California, there are only three reasons an automobile policy can be canceled/non-renewed once it is issued. (1) Fraud or material representation; (2) Non-payment of premium; and (3) Substantial increase against hazard.

Cancellation notices should be mailed to you at your last known address stating the reason at least ten (10) days prior to the cancellation’s date effectivity for nonpayment of premium, and twenty (20) days for all other reasons. As for nonrenewal, notices must be forwarded to you at least thirty days (30) before expiration. Upon your written request, the company will give you the reason for your policy’s nonrenewal and this should be stated on the nonrenewal notice. These notices also serve as a reminder for the policyholder and give him an opportunity to pay the past due premium and keep the policy in force (if nonpayment is the issue) or to secure other insurance. I would suggest contacting your Provo, UT insurance agent to find out more information on regulations regarding auto insurance cancellations and nonrenewals.

You may contact you car insurance company in Provo to get more information on car insurance cancellation.