An insurance contract is a legal agreement between you and the company that offers specific coverage to you. When you enter into this contract, you are informed not only of the cost but also of the particular conditions of coverage and the term of the policy. The terms of the contract are drawn up by the insurance company and it becomes valid with your signature.
Once that is done, you may assume that the coverage will remain valid year after year. You may also feel confident that the only thing you may want to do in the future is to shop around to get a policy that will cost you less. Or maybe you won´t even do that, and are happy staying as you are now.
However, when you least expect it, your insurance company informs you that your benefits have been terminated! How can that be?
Some Reasons For The Termination Of An Insurance Policy
Having lost your driving privileges after an accident
If you were found to be under the influence during an accident and your license was revoked, your insurance company may reach the decision to terminate your policy. It’s uncommon for an insurance company to cancel a policy after the first accident, but these situations may exist.
You are considered to be a high-risk driver
What places you in the high-risk category? Your record. Nobody knows better than you how many speeding tickets you have gotten in recent times, how many speeding tickets and other moving violations you have accumulated, and how many accidents you have been involved in. If this is your case, your insurance company may either raise your premiums considerably or simply refuse to issue a new policy once your current one expires.
Failing to pay your premium
After several reminders by your insurance company regarding unpaid bills, the company may simply decide to cancel your policy. How long they will wait for you to pay depends on specific state regulations and the insurance company’s own guidelines.
Is There Anything You Can Do?
You are most likely very concerned about the termination of your benefits. Yet, there are ways for you to negotiate with your insurance provider if this happens. A first step can be a simple phone call to ask for an explanation for this decision. You may find that you can come to a satisfactory solution regarding the complains the insurance company has about you.
You may offer, for example, to remove part of the policy. Particularly in cases where their main complaint is that you have been filing too many claims. In the case of your homeowner’s insurance, for example, if you have experienced too many problems with water damage, you may suggest they take that provision out of the policy and then renew it.
If the policy is canceled because you have skipped some payments, catching up with what you owe may be enough for them to accept to reinstate the policy. But if your policy has been canceled simply because of too many claims or points, you may find no other option open to you but to look for coverage someplace else.
Don’t do this alone. Enlist the services of Injury Trial Lawyers, APC in San Diego to help you negotiate a good solution and explain all available options open to you.
