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When can a car insurance company cancel you?

Updated: 9/11/2023
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13y ago

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Insurance CancelAn insurance company can cancel you anytime they want to as long as they have a legitimate reason to do so, and they are required BY LAW to send you WRITTEN NOTICE to advise you of any cancellation should one occur. This not does not apply to monthly bill statements because within the bill statement it says that your policy will cancel should they not receive a payment. This is the most common reason for cancellations, when people don't pay their monthly insurance bill. Another reason you may be cancelled the company can consider you high risk. If you hve had too many accidents or have have made too many claims with a certain time period, they can cancel you because they feel it would actually cost them more to insure you versus insurance premiums you would pay to them. Finally, you can be cancelled for fraudulent reasons. If you lied on a claim, mileage at time of policy issue, or just cheated the insurance for whatever reason, they can cancel you. Also, if the offense is serious enough, you can be sued or possibly prosecuted.
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Q: When can a car insurance company cancel you?
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Does car insurance become cancelled when the owner passes away?

Not unless the deceased calls the company to cancel. The insurance company cannot cancel the policy unless it is requested in writing by the insured or executor or if it cancels for non-payment.


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When you plan to sell your car you should notify your insurance company of the pending sale. It will provide you with instructions on how to transfer title properly, surrender the plates and cancel the insurance if you aren't transferring the coverage to a new car. Generally, the insurance company won't cancel the insurance until the plates are turned in or transferred to another vehicle through the RMV. That means the company will continue to bill you until the transaction is properly completed.If the insurance was paid for and the policy is cancelled during the coverage year the company will issue a refund based on their own calculations.


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