Can an insurance company drop your auto insurance any time?

Sad but true , they may not renew an existing policy but they can't drop you until you reach the end of your contract with them , how ever if you committed a fraud in violation of your contract with them then they can drop you , no questions asked...

Yes they can drop you, the same as you acn drop them.

In case they do drop you, be sure you get a few quotes around before deciding on a new insurer, you can't assume that the first you find will be the best value for money.

This is a very quick and straight forward tool to find cheap insurance:

http://easily-cheapest-car-insurance.autoinsurance...

input your data and hit enter, they'll come back with prices from different insurers in your area. It's very quick and free of charge.

Here's more from my bookmarks:

http://comparecheap-motoring-insurance.insurance.m...

Always get several quotes, try them all, they are free so find the cheapest one, it's out there.

RE:

Can an insurance company drop your auto insurance any time?

I have had 3 claims in 4 years. The first two claims where while living in another state. I since moved and just put in my third claim today (first claim with this company). My insurance payment really isn't all that high, about $75 monthly. The lady told me today that it would go up 10% if the cost was over $750. (it will be)

She said this didn't effect my insurability or anything, but what if I had another accident in a year??

The real question is, can an insurance company drop you for any reason at any time? Some have said no, only within the first 60 days, others say yes, absolutely any time.

What's the right answer?

Not usually. Most companies will reimburse you the pro-rated amount of your premium which has not been used upon cancellation. IE: If you paid $300 for a period of 6 months and you cancel 2 months into the period, then they should reimburse you $200. Just make sure to get the new policy before you cancel the old one otherwise your new insurance company will charge you a higher rate for being "uninsured" at the time the contract was signed. Also, watch out for "hidden" fees... sometimes insurance companies low-ball their quotes to get you to sign with them only to find your payment to be much higher once you are a customer. Here's some common tricks they use: -"Finance Fee" if you want to pay month-to-month instead of a lump-sum for the year. Everyone expects to make payments, but a lot of the quotes are based on paying in full up front. Many companies add on as much as 20% if you want to pay monthly. -Fee for paper billing. Many companies want you to setup automatic payment plans. Electronic payments reduce their overhead sicne they don't need actual people to open letters, take checks to the bank for deposit, etc, etc. Many of the insurance quotes are based on an electronic payment plan. If you opt for paper billing, they often charge more. There are a few other tricks but I need to get back to work right now...

Once an Insurance company has taken your money they have entered into a contract for the period for which payment has been made. During this time they cannot "drop" you. It would be a breach of contract.

$75.00 per month seems a lot to me. Perhaps you could consider paying a longer period to extend the contract.

In many cases the insurance company will impose a high excess to limit their exposure.

It is up to the insurance company to assess their perceived risk and set a contract accordingly. During the period of the contract you are covered no matter what.

They can decline to renew your policy but not mid-term. As far as the other claims being in other states, that doesn't matter to the insurance carrier. What they are looking at is who was at fault for these claims. If you have 3 in 4 years and they continue to cover you, you'll likely see a rate increase in the form or a surcharge or a higher rate policy class.

They have the absolute right to decide who they don't want to do business with of course. At renewal time when they evaluate risk factors, they may decide to not renew your policy, but you would have at least 30 days to get covered by another company in that event.

Of course, if you lie on an application they can drop you immediately for cause, but that isn't your case.

yes they can if you get too many points on your license they have the right to not cover you anymore but as long as you have them while you get a accident they will have to cover the accident. Im going through that myself my husband got in a wreck it wasnt his fault and GMAC insurance dropped him because he did that and now they dont want to cover it. try going to the driving school to get some points off your license. Then at least next time you wont have so many points. good luck and be safe

they can drop you but they must give you a notice of usually 60 days. But you still must pay the premiums for those notice days.

yes they can with proper notice...the notification time is different for each state. if you had another accident they may drop you for claim frequency

Look at the terms of your policy, there should be a section on reasons they can cancel your policy.