What Causes Auto Insurance To Be Canceled in Ohio
Reader’s Question:
I am a new driver. I admit that there are a lot of things that I need to know about auto insurance in Ohio. I am quite confused with car insurance right now. One of the things that bugs me is the cancellation of car insurance. How does car insurance get canceled in Ohio?
Armand
Parma, OH
There are several reasons on how auto insurance policy gets canceled in Ohio. You must remember that for the first 89 days of purchasing your car insurance policy, your auto insurance company can cancel it for any reasons, let’s just say for almost any reason.
However, once you’ve reached the 90-day period, meaning you have purchased your car insurance policy for 90 days, your car insurance policy is protected. Your policy cannot be canceled by your car insurance company within the two-year period except for the following reasons:
First, giving misinformation when applying for the policy;
Second, your driver’s licensed is revoked or suspended;
Third, filing untruthful claims; and
Fourth, failing to pay your car insurance premium.
If you have additional questions about auto insurance cancellation in Ohio, always remember you can also ask your car insurance agent or even the Ohio Department of Insurance.
Car Insurance Policy Canceled in Louisiana – Can I Still Drive
Reader’s Question:
My insurance policy was canceled just this week because I was having problems making the payments. Does that really mean I can’t drive at all until I get another drivers license? Is there no grace period for people like me? I come from Louisiana by the way. What are the rules around here?
Susan
Lafayette, LA
The law varies in every state, I believe. I hate to be the bearer of bad news but in Louisiana, the state allows you only 10 days to get a new insurance policy. Fines as much as $225 await those who fail to do so. And until then, you can renew neither your registration nor your license. You had better talk to people from the Motor Vehicle Reinstatement Office there in Louisiana about this.
It is also important that you be driving around with a liability insurance at the very least. You are required by the state to bring proof of insurance every time you take your car out of the driveway. Otherwise, your vehicle will be impounded and your license plate will be confiscated. Furthermore, failure to show proof that you do have insurance coverage within three days would mean you have to register your vehicle all over again.
Obviously, the state of Louisiana is pretty strict when it comes to vehicle owners’ having liability insurance. If I were you, I wouldn’t risk getting caught driving without one. It’s just not worth the trouble. You should find the time to sort out your auto insurance problems as soon as you can. Only then can you get back on the road.
Auto Insurance Renewal Grace Period In Washington
Reader’s Question:
I heard that auto insurance renewal in Washington depends on the car insurance companies themselves. So if an insurer decided not to renew a person’s policy, that person doesn’t have a choice but to find another car insurance company who would be insuring him. Now my question is, do car insurance companies offer a grace period? I mean, if they have decided not to renew the policy, do they send in some kind of notification to the policyholder?
Ally
Federal Way, WA
Yes they do Ally.
According to the Washington State Office of the Insurance Commissioner, it is a requirement for auto insurance companies to give the policyholders a notification in form of writing if their auto insurance policy has been canceled or not renewed.
If a car insurance policy is not renewed, an insurer must send a written notification regarding the non renewal and this should be twenty days (20) prior to the non renewal of the policy. Such grace period is given so a person has enough time to purchase a new car insurance policy.
If you auto insurance was not renewed by your car insurance company, you can check the available websites for auto insurance rates. You can also ask your car insurance agent in Federal Way, Washington for additional information.
Difference Between Auto Insurance Cancellation and Nonrenewal
Reader’s Question:
I am confused. I heard from my boyfriend that cancellation of car insurance policy is different from nonrenewal. I don’t see any difference at all. Can someone explain it to me in a manner that I can easily understand? Thanks!
Rica
Bismarck ND
You don’t have to be confused Rica. Your boyfriend is correct. There is a huge difference between cancellation and nonrenewal of auto insurance.
According to North Dakota Insurance Department, cancellation of auto insurance policy can take place in the middle of the policy period. It can be done by the policyholder. However, if a policy has been in effect for 60 days, a car insurance company can still cancel it for specific reasons like failure to pay the premium, policyholder’s license has been suspended etc. to name a few.
Meanwhile, nonrenewal of car insurance happens once the policy itself had expired. The car insurance company can choose not to renew the policy depending on its company’s guidelines. Some of the factors an insurer consider in not renewing (or renewing) a policyholder’s auto insurance are driving record and claim history.
If you have any questions about cancellation and nonrenewal of car insurance policy in North Dakota, you could always ask your car insurance agent or the North Dakota Insurance Department