Yes, car insurance can be cancelled after an accident, but insurance companies usually won’t do so unless the driver has multiple infractions on their record or the accident was caused by a serious violation like DUI. If the insurer does cancel the policy, they will likely wait until it expires and decline to renew it. However, if your license is suspended or revoked after the accident, some states like California and Texas will allow your insurer to drop you mid-policy.
The good news is that if your insurance company decides not to renew your policy, they are legally required to let you know, usually 30 days prior to the policy’s expiration.
Although it’s not as common for a policy to be cancelled before it expires, most states allow insurers to cancel a new policy for any reason within 60 days of it going into effect. After that point, if your insurance company decides to cancel your coverage mid-policy, you will be notified anywhere from 10 to 100 days in advance, depending on the state.
This will give you plenty of time to start looking for a new policy elsewhere. It’s essential that you avoid a lapse in coverage, which will only make you seem more high-risk.
On that note, if your insurance company decides to drop your coverage after an accident, you need to find an insurer who will sell you a high-risk policy. While several major insurers offer high-risk policies, you should also consider getting quotes from nonstandard insurance companies that specialize in insuring high-risk drivers. If you’re still struggling to find coverage, then you might need to temporarily enter your state’s assigned-risk pool while you work to improve your driving record.
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