Compare Car Insurance Companies That Don’t Report to the DMV When They Cancel a Customer’s Policy [2021]

There aren't any car insurance companies that don’t report to the DMV when they cancel a customer’s policy because insurance reports are required by state law. These reports detail the level of coverage you carry to make sure you're adhering to the minimum liability laws in your state. Failure to carry the minimum levels can cost you your insurance coverage and raise your car insurance rates with companies that do report to the DMV when they cancel a customer's policy.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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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® Joel Ohman

UPDATED: Nov 3, 2021

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Here's What You Need to Know

  • Since liability insurance is legally required to drive, car insurance companies must submit coverage details to the DMV
  • State insurance laws require providers to report any and all policy changes to the DMV within 30 days
  • When getting car insurance quotes with a canceled policy, most insurance companies will place you in a higher risk class and charge higher rates

You won’t find any car insurance companies that don’t report to the DMV when they cancel a customer’s policy. State laws require providers to report any policy changes to the local department of motor vehicles within 30 days, but these requirements can vary by state.

Car insurance cancellation laws protect drivers by also requiring insurance companies to notify policyholders before coverage is canceled. Depending on where you live, you can have up to 20 days to find new coverage after your policy is canceled.

If your policy is canceled, it’s important to compare car insurance companies before you buy to find the best rates. A lapse in coverage raises your risk level with some providers, which can raise your rates.

Keep reading to learn how much car insurance costs with a canceled policy and why it’s impossible to find car insurance companies that don’t report to the DMV when they cancel a customer’s policy.

Ready to buy car insurance now? Enter your ZIP code above to compare car insurance quotes from local companies for free.

Can I compare car insurance companies that don’t report to the DMV when they cancel a policy?

No, you can’t compare car insurance quotes from companies that don’t report to the DMV when they cancel a customer’s policy because insurance reports are required by state law.

Drivers must carry minimum levels of liability car insurance coverage in order to legally drive in all but two states.

In Virginia and New Hampshire, where car insurance isn’t required, drivers still must prove they can afford the costs of a collision if they want to obtain a driver’s license and register their vehicle.

Since liability insurance is required to drive, insurance companies must submit coverage details to the DMV. This information is stored in an electronic database and used to track drivers’ registration and insurance coverage.

State insurance laws require all car insurance companies to update the DMV when they cancel a policy or start a new one, so you won’t find coverage from car insurance companies that don’t report it when they cancel a customer’s policy.

That doesn’t mean you can’t find affordable car insurance companies that do report to the DMV when they cancel a customer’s policy. Comparing car insurance quotes from at least three different providers in your area can help you find the best rates, no matter your insurance record.

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How much are car insurance rates with a canceled policy?

Car insurance companies will look into your driving and insurance records to determine if you’re eligible for coverage and how much your car insurance rates will cost.

Your insurance record typically includes any canceled policies, how many claims you’ve filed, and any lapses in coverage you may have had. More severe charges are included in this report if they apply, including insurance fraud.

A canceled policy can raise your car insurance rates, but the reason for termination will influence the cost of car insurance. Car insurance with a bad record will cost more.

For example, multiple DUIs and an SR-22 filing will cancel your car insurance and raise your rates significantly more than a policy that is canceled for non-payment.

If your car insurance is canceled because of speeding tickets or accidents, your rates can increase by $45 per month, on average.

When getting car insurance quotes with a canceled policy, most insurance companies will place you in a higher risk class and charge higher rates.

These rates will vary based on where you live, so take a look at the table below to see how much car insurance rates increase for high-risk drivers by state:

Average Annual Car Insurance Rates for High-Risk Drivers by State
StateAverage Annual RatesAverage Annual Rates for High-Risk DriversPercent Increase
Alabama$1,217$2,02967%
Alaska$1,188$1,77149%
Arizona$1,009$2,532151%
Arkansas$1,277$2,08763%
California$1,461$3,765158%
Colorado$1,095$1,66052%
Connecticut$1,597$2,59262%
Delaware$1,538$3,113102%
Florida$1,463$2,73987%
Georgia$1,210$1,97263%
Hawaii$1,104$3,112182%
Idaho$822$1,27956%
Illinois$990$1,57059%
Indiana$950$1,65174%
Iowa$939$1,34543%
Kansas$1,141$1,81659%
Kentucky$1,177$2,17685%
Louisiana$1,645$2,48851%
Maine$758$1,38683%
Maryland$1,260$1,41112%
Massachusetts$1,469$2,62979%
Michigan$2,297$6,337176%
Minnesota$1,270$2,584104%
Mississippi$1,218$1,91357%
Missouri$1,039$1,55049%
Montana$1,321$2,24970%
National$1,215$2,14676%
Nebraska$1,035$1,75970%
Nevada$1,113$1,69652%
New Hampshire$865$1,776105%
New Jersey$1,348$2,49985%
New Mexico$1,125$1,78759%
New York$1,336$2,14460%
North Carolina$836$3,206284%
North Dakota$1,365$2,14357%
Ohio$763$1,16553%
Oklahoma$1,405$2,46175%
Oregon$1,110$1,73756%
Pennsylvania$1,252$1,96857%
Rhode Island$2,117$3,50265%
South Carolina$1,055$1,56648%
South Dakota$1,080$1,52041%
Tennessee$1,256$2,19375%
Texas$1,416$2,26760%
Utah$935$1,47257%
Vermont$900$1,39255%
Virginia$849$1,41567%
Washington$1,075$1,74062%
Washington DC$1,628$2,40648%
West Virginia$1,534$2,52364%
Wisconsin$863$1,41764%
Wyoming$1,237$1,94557%
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If you’ve received notice from your car insurance company that your policy will be canceled, it’s important to start shopping for new car insurance immediately to avoid a lapse in coverage.

Driving without car insurance is illegal, and you risk losing your license on top of increased rates if you’re caught behind the wheel without coverage.

However, insurance companies are also required to notify you before coverage is canceled. You will receive a letter by mail or email explaining why your coverage is canceled and giving you the exact date when your coverage will end.

Typically, you will have between 10-30 days to find new coverage. Take that time to shop around with multiple companies, especially if you’re worried about being in a higher risk class and want to save money on car insurance.

To find the cheapest car insurance rates possible, start comparing quotes here for free. Enter your ZIP code below for free quotes from local car insurance companies today.

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

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