What does it mean when your car insurance is cancelled and how do you get it reinstated?
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Asked June 28, 2011
Car insurance can be canceled by either party with advance written notice, and it may be canceled by the insurance company if your have not made your premium payments on time. If you initiate the cancellation, make sure that your new coverage goes into effect before the old coverage ends or you may be subject to the suspension of your tags or driving license. If it is canceled by the insurance company, you will receive a notification of how long before the policy coverage ends and any recourse you may have to get it reinstated.
In the case of insurance non-payment, most insurance companies will reinstate your policy without a lapse in coverage within a period of time ranging from 15 days to 30 days so long as you do not file a claim or cause other insurance losses during the interim period. If your policy has been canceled or is about to be, filing insurance claims will probably prevent you from getting the policy reinstated and may result in denial of the claims by your insurance company, depending on the circumstances.
If you are not able to get the coverage reinstated, you should shop around for more car insurance before the cancellation is effective. Shop online and compare rate quotes between major auto insurance companies, and find a policy that meets your needs without overflowing your budget. Keep in mind that driving without insurance could result in serious financial problems, including having your privilege to drive taken away, and secure new coverage before the cancellation is registered with your state department of motor vehicles.
Answered June 28, 2011 by Anonymous