Top Reasons Why Car Insurance Companies Deny Renewal ?

Car Insurance is a must for all who drive a car. It is an assurance for all the drivers against unforeseen accidents that have the potential to cause damages to their vehicles and physical selves. For instance you are driving within the allotted speed limit but a vehicle on the other side jumps the signal and crashes into your car. Your car suffers damages and you may have to shell out thousands to fix them. What next? Should you blame yourself for the accident? If you don’t have a car insurance, who will cough up the compensation money? These are the basic questions that should bother a car owner or a driver before taking the vehicle out for a drive.

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Car Insurance is the answer to various such issues that come as a part of the package. Thus, it is important to have an auto insurance policy by your side to ensure that the damages are taken care of in times of need. While many auto insurances are non-renewable, many on the other side do however, offer renew your insurance.

 

When Insurance Companies Can Deny Car Insurance Renewal?

 

Do you have an auto insurance policy, which cannot be renewed once it has attained maturity or have you been denied a renewal by your insurance company? Have you ever thought about the probable reasons behind the denial by your insurer? Here is the answer to such questions. Insurance companies are in a business where they don’t lose money however, every company is governed by their set of rules and laws, which is why they have different non-renewal policies. However, some of the most common reasons for which insurance renewal is denied include:

 

1. Poor Driving Record

 

If you have been a regular traffic violator and have offended the law too many times, it reflects poorly on your overall driving records. This perhaps is one of the strongest reasons, why many insurance companies deny the renewal of your auto insurance policy. After all, no company would like to risk their money on a high-risk driver!

 

2. Excessive Complaints

 

Most insurance companies set a particular number for complaints, which you are entitled to file in a given period of time. If you are aggressive enough to file more than the number of allotted complaints, you stand the chance to lose the renewal of your auto insurance. No matter the severity of the accidents, the company would opt out of renewing the policy with you.

 

3. At-Fault Accidents

 

If you are a reckless driver and find yourself in the midst of too many at-fault accidents, chances are that you would be denied a renewal of your auto insurance policy. No company likes to invest in a driver, who is the center as well as the cause of recurring accidents!

 

4. Non Payment of Dues

 

In case you are not regular with the payment of your insurance premiums, you stand at a chance to be denied the renewal of your auto policy as and when it expires and is ready for renewal. No company likes to invest in persons who are irregular with the payment of their premium amounts.

 

Tips to Avoid Renewal Denial

 

Follow these simple tips to avoid being denied the renewal of your auto insurance policy by your insurer. These include:

 

1. Follow traffic rules to avoid traffic violations.
2. Be a careful driver, maintain a clean driving record.
3. Be a regular with the payment of your insurance premium.

 

Car owners should never forget the fact that when they violate the company policies and the traffic laws, they are perceived as serious offenders by the insurance companies. You may get away from the law by paying your fines but then your traffic records speak volumes about your driving habits and traffic violations. Your biggest penalty may come as a denial by your insurance company to renew your auto insurance policy! So, be a safe driver and avoid traffic violations to be in the safe books of insurance companies.