As a car insurance policy owner, there are many things you can do that will cause your coverage to get dropped by your insurance provider. While there are obvious reasons that can cause dropped coverage, such as missing a premium payment, other reasons may not be as clear. Here are some reasons your coverage can be dropped, and what you can do to prevent it from happening.
Be A Good Driver
An insurance company will provide insurance to drivers that they do not feel are a high risk. You may not be causing accidents when on the road, but frequent problems with speeding tickets and other moving violations can result in losing your coverage.
Your driving behavior will eventually get back to your insurance provider, and that risky behavior will result in higher coverage. However, continuing to ignore the rules of the road could lead to having your coverage dropped. To maintain coverage, all you need to do is be a good driver. Follow the rules, don't break the law, and the police won't have anything negative to report to your insurance provider.
Set Up Automatic Payments
Your insurance may need to be paid once or twice per year, which makes it easy to forget that the premiums need to be paid. It is a good idea to set up an automatic payment with a credit card; that way, you will have a backup plan in case you forget about that annual or semi-annual premium that is due. You can always log in to your insurance provider's website and make an early payment with a different payment method if you do not want to use your credit card.
Your insurance provider will ask you questions to determine how big of a risk you are as a driver. It is important to be truthful with these questions, since the provider may drop coverage if you are found to be lying about them.
For instance, you may be asked how many miles you drive every year. If you drive to work every single day, don't say you rarely drive your car and mainly rely on public transportation. If you are asked for an odometer reading in the future, your mileage being much greater than your estimate can result in loss of coverage. You will have been paying a lower rate for years based on lower usage.
When in doubt, speak to your insurance agent about what could cause loss of coverage on your policy. For more information, contact a company like McHugh Insurance.