Can getting speeding tickets or a DUI cancel my car insurance?

The specifics that dictate a car insurance company’s ability to cancel your policy vary from state to state but, you should know that your car insurance can drop you.

There are some general truths about non-voluntary car insurance cancellation that can help you determine if you will soon find yourself shopping for new coverage.

You will need to have insurance but also carry proof of insurance showing you have at least the minimum required coverage. It’s usually a good idea to also comprehensive coverage, collision coverage, uninsured motorists coverage, and even more. In fact, sometimes you must have full coverage.

Read on to learn when a car insurance company can cancel your auto insurance policy against your will, and then enter your ZIP code to receive quotes from multiple car insurance companies!

What is non-voluntary car insurance cancellation?

The primary reasons an insurer might cancel your policy revolve around fraud, failure to pay your premium, or being in possession of a suspended or revoked license.

The latter category could include tickets for driving over the speed limit, accidents, or one or more arrests for Driving Under the Influence (DUI).

If you have speeding tickets, accidents, or a DUI on your record, but your license has not been suspended or revoked, it is unlikely that your insurance company will cancel your coverage.

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What is the difference between non-renewal versus cancellation?

Just because an insurer does not cancel your policy because of speeding tickets, accidents or DUI doesn’t mean your coverage is not in danger (read our “Can I cancel my car insurance after an accident?” for more information). Some types of traffic violations aren’t even factored in, but major violations will be. Though a minor violation like parking tickets and other non-moving violations won’t matter so much to your insurer.

There is yet another way that a car insurance provider can drop your coverage, and the opportunity rolls around with each renewal period.

A company can choose not to renew your policy30 day notice if, for instance, your clean driving record has been tarnished.

An excessive number of speeding tickets, accidents, or a DUI arrest are some of the factors that can lead to non-renewal.

State law in Florida, as an example, stipulates that car insurance companies are within their rights not to renew policies on drivers who have at least two at-fault accidents.

Being in three accidents, whether you are determined to be at fault or not, will likely be met with non-renewal once your current policy expires.

A significant difference between non-renewal and cancellation is that non-renewal does not necessarily put you into a pool of high-risk drivers.

Because circumstances surrounding non-renewal often have nothing to do with the driver (for example, it may result when a company stops offering insurance where you live), it does not automatically have the negative effect that cancellation does.

What can you do if your car insurance is canceled or not renewed?

If your policy is canceled, you will most likely be relegated to a group of people known as “high-risk” drivers. These drivers are denied the standard car insurance rates; instead, they must choose from “non-standard” options.

Non-standard car insurance is more expensive, justifying the high-risk level insurers are taking on by covering drivers with a proven record of accidents, traffic violations, excessive claims, and other similar factors that affect car insurance rates.

You should consider this option only after exhausting all avenues available to save your existing policy.

In addition to canceling your policy, there are several things you can do to protect yourself:

If possible, find out why your policy was canceled. This information will help you understand what steps need to be taken to avoid future cancellations.

Make sure you keep up with payments on time.

While the non-standard car insurance market is smaller and more expensive, you can utilize the same online quote comparison tool that applies to standard car insurance when shopping for the best non-standard policy for your situation.

By typing in your personal information one time, you will have multiple car insurance quotes at your fingertips.

How are car insurance rates affected?

It is not just speeding tickets, accidents, or a DUI that will affect your status as a high-risk driver, not to mention the fact that the type of violation changes how much your annual premiums can raise.

Age can also have an effect, with drivers younger than 25 or older than 70 paying higher rates than those in between.

Men usually pay more than women. There are health conditions impacting driving ability that can lead to higher premiums as well. More expensive cars cost more to insure.

If you know all the factors that go into your higher rates, you will be better able to decide if making changes to your driving lifestyle will lead to savings on insurance premiums.

If your driving record is so bad that you cannot find coverage through private means, you are eligible for state-sponsored “assigned risk” coverage.

Each state that requires car insurance must make sure that there are options available for all drivers — even those that present the highest risk.

To that end, each car insurance provider in that state must be represented in the assigned risk pool relative to its size.

Larger companies are required to insure more assigned risk drivers than smaller companies.

Read more: How Traffic Infractions Affect Car Insurance

High-risk drivers are randomly assigned their car insurance provider through this program.

Since assigned risk coverage is guaranteed to be one of the most expensive options out there, it is wise to exhaust all other options through the online quote comparison tool before resorting to this form of insurance.

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Case Studies: Can getting speeding tickets or a DUI cancel my car insurance?

Case Study 1: Velocity Insurance Company

John, a policyholder with Velocity Insurance Company, received multiple speeding tickets within a short period. Concerned about the consequences, John contacted Velocity Insurance to inquire about the potential cancellation of his car insurance. Despite his violations, the company decided not to cancel his policy but increased his premium to reflect the increased risk.

Case Study 2: SafeDrive Insurance

Emily, insured by SafeDrive Insurance, was unfortunate enough to be charged with a DUI. Fearing the loss of her car insurance, she promptly reached out to her insurance provider for clarification. After reviewing her case, SafeDrive Insurance decided to cancel her policy due to the severity of the offense. Emily was then required to seek alternative coverage with a specialized high-risk insurance provider.

Case Study 3: SecureShield Auto Insurance

Mike, a long-time customer of SecureShield Auto Insurance, had a history of minor speeding violations. However, his most recent speeding ticket exceeded the acceptable threshold set by the company. Consequently, SecureShield Auto Insurance decided to cancel his policy, citing an increased risk profile that no longer aligned with their underwriting guidelines.

Case Study 4: SureCare Insurance Services

Sarah, insured with SureCare Insurance Services, was involved in a DUI incident. Despite the seriousness of the offense, SureCare Insurance chose not to cancel her policy. However, they implemented a substantial increase in her premium to account for the heightened risk associated with her driving history.

Case Study 5: FastTrack Auto Assurance

David, a policyholder of FastTrack Auto Assurance, was caught driving under the influence and subsequently charged with a DUI. The insurance company swiftly canceled his policy, citing their zero-tolerance policy toward such violations. David had to search for new coverage from another provider specializing in high-risk drivers.

How can you save on your car insurance after your policy is canceled?

While you can be sure that your insurance rates will be considerably higher when you join the ranks of high-risk drivers, there are ways to minimize the damage by using the online quote comparison tool.

This useful technology allows you to do a thorough job of researching car insurance options before committing to the best policy for you.

You may want to consider switching from collision-only policies to comprehensive coverages. Comprehensive covers everything except fire and theft. It is important to note that these types of policies require larger deductibles which mean lower monthly rates for drivers but greater potential losses.

Another option would be to switch carriers. You might get a cheaper rate because they offer different products. For example, some insurers specialize in low-cost auto insurance while others focus on providing good customer service.

Driving without insurance is not an option — so don’t waste any time finding the car insurance policy that will get you back on the road legally and safely.

Enter your ZIP code to compare rates from multiple car insurance companies for FREE!

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