What do I do if my car insurance is canceled?

If your car insurance is canceled for speeding, your future rates could increase by $45.46/mo. More serious offenses may require a period of SR-22 coverage.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 13, 2020

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Here's what you need to know...

  • In most scenarios, your car insurance company cannot and will not cancel your insurance coverage
  • The company does have the option not to renew your auto insurance policy
  • If you have been charged with DUI or have been in multiple accidents, it’s not a bad idea to search for new insurance coverage
  • Once you are considered high-risk, your rates for auto insurance increase dramatically

If you’ve had speeding tickets, accidents or a DUI, you may be concerned about the cancellation of your car insurance policy.

The specifics that dictate a car insurance company’s ability to cancel your policy vary from state to state.

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

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 excessive speeding tickets, 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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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.

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.

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 to 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.

While the non-standard car insurance market is smaller and more expensive, you can utilize the same on-line 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 Car Insurance Rates are Affected

It is not just speeding tickets, accidents or a DUI that will affect your status as a high-risk driver.

Age can also have an affect, 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.

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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Saving on 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.

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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Enter your ZIP code below to view companies that have cheap car insurance rates.

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