Can My Insurance Company Cancel My Policy?
There are various reasons why your insurance company could consider canceling your policy but there are things you can do about it.
How to Manage a Potential Cancellation of Your Insurance Policy?
Insurance is one of those things that is easy to take for granted until you get a call and find out your insurance company is looking to cancel your policy. —Wait. What? Is that possible? —It is.
Remember, the insurance business is all about measuring risks and when things get too risky, decisions are made. That call is not definitive. It means there’s an intention but it doesn’t mean there’s no turning back. In some cases, you can negotiate and explain, and that could help you turn things around.
But, to start off, why would your insurance company want to do this in the first place? Here are 5 of the most common reasons why your insurance company could consider canceling your policy:
- Excessive amount of claims
- Missing payments or non-payment
- Home requires maintenance or is in disrepair
- Change in situation
- False declarations or criminal record
What Can You Do About It?
Just because your insurance company is considering canceling your policy, it doesn’t mean it’s a lost battle. You can still fight it.
Make Them Think About It
Present your case. Show them that things have changed but make sure every bit of information you present is accurate, but before you do all this, make sure that the information they have about you is real. Someone could have made a mistake.
Be Proactive and Present Solutions
If the circumstances have not changed, what could you do to make them change? Maybe you need an alarm system to prevent your home from being targeted for robbery. Perhaps you need to take a high deductible. Also, don’t be afraid to ask for an alternative policy. One that leaves out that riskier part. You might be able to take on basic coverage in place of your current plan.
When you face a possible policy cancellation, things can be quite overwhelming and stressful. The best thing to do is have someone at your side that can walk you through the entire process. Everyone needs an insurance agent they can trust. At AAI Central Agency, we are independent insurance agents, and we are always there for you. Contact us today!