7 Crazy Reasons Why People Got Their Auto Insurance Policies Canceled
Most people think that the only ways that you could get dropped from your auto insurance policy would be to have a DUI arrest or conviction, have gotten too many traffic citations, or have been involved in too many accidents. However, there are many cases all around the United States where insurance policy holders are dropped for seemingly trivial reasons. Here are a few examples of crazy reasons why people have had their car insurance policies canceled.
1. Excessive Moose Collisions
A woman from New Hampshire ended up having her insurance coverage canceled thanks to two separate incidents involving moose. She hit a moose twice in the span of ten years and her auto insurance company said that the number of accidents that she had been involved in was too excessive. In all fairness, if you hit a moose it is not because you are a risky driver, sometimes you just take a corner late at night and a moose is just there. This is a 1,600 pound animal and hitting it does cause a lot of damage but it is very hard to even swerve to avoid a collision without hitting something and injuring yourself or someone else.2. Just Married
Another woman got her car insurance terminated because she got married. Now, men could probably use this as an excuse to not take that long walk down the aisle but it does not happen all the time. The reason behind this is when you get married to someone; they bring additional risk to your auto insurance coverage. The combined credit risk that is involved equates to the factors that are used by the underwriters to determine if you are insurable and should be written an insurance policy. The husband that she married had a few accidents on his driving record and coupled with them having bad credit, their auto insurer said “See ya!”3. Broken Windshield
One man actually was dropped for insurance claims that he filed due to a broken windshield. The guy must have been asking for it by having probably a dozen cracked windshields in a month right? Wrong. The man had two, count them two cracked windshields in a 30 day period. Now, cracked windshields do not break the bank to fix, so if you live near a school, baseball field, or golf course then you may want to move or park your vehicle in a garage.4. Stationary Accidents
Another woman was dropped from her car insurance provider because her car was hit while it was not moving on two separate occasions. Now, risk is one thing, but if your car is not being driven then why should an insurer be able to drop you when someone else hit you? Why would you even be considered to be a risk to insure when you were not even near your car and could not avoid the collision happening in the first place? The person was unlucky but not everyone gambles and wins every single time and insurers should know that and not punish someone for unforeseen circumstances.5. Identity Theft
One California woman had her auto insurance canceled due to identity theft. A female identity thief used her checking account information to fraudulent open an auto insurance account with another insurance provider and then she did not ever pay the premiums again. This led to the woman being dropped from her insurance provider because someone else stole her information and had not paid the premiums on time each month.6. Accidents Over the Long Term
A man who filed claims for three very minor fender benders over a period of 15 years ended up being dumped from his auto insurance company. The damage totaled less than $5000 in all three accidents yet he was deemed to be too big of a risk to insure. Most people would agree that cancelling under such conditions is a bit absurd.7. Bounced Checks
Finally, a man in Maine had his insurance policy canceled because he let his premium checks bounce two times in two years. The auto insurance company said that lack of payment was taken into consideration and that they could no longer underwrite a policy for him with their insurance company. It would have been much simpler for them to simply collect payment from the customer, and not only recover the customer, but prevented them from sharing their poor experience with others.
It seems as though car insurance policies have become increasingly difficult for drivers to secure for the long term, which is now due much in part to auto insurance fraud and other issues. There are millions of vehicles on the road and sadly accidents happen every single day. It is important for people that have been told that their car insurance is being canceled because they need to purchase a policy through another provider before the cancellation is completed.
Receiving an insurance policy cancellation letter is no fun. Once a person has their car insurance policy canceled, it is not just a headache that they face; they will also face massive insurance premium hikes. Auto insurance companies are not really “independent” in the sense of the word. They all can access the same information about each driver that applies for an insurance policy through their company. If say Insurance-Company-A sees that Insurance-Company-B has canceled a driver’s insurance policy then they will get suspicious and will be less likely to underwrite a policy. The auto insurance company that does in fact underwrite an insurance policy for that same driver, could end up charging the driver two or three times more money each month for their insurance premiums.
Drivers need to understand that auto insurance is almost becoming a privilege for people to have so it is important to know that auto insurance policies can be canceled for even the smallest reasons. Before filing an insurance claim, think twice about it and ask yourself do you really need to file that claim or can you afford to pay out of pocket and save yourself some headaches down the road.
