Generally, if you are not at fault in the accident and you make a claim against your medical payments coverage or your uninsured motorist coverage, your insurance company will not usually drop your coverage. This is because the accident was not your fault. However, if you are at fault and another driver makes a claim against your liability coverage, your insurance company may drop you or increase your premiums.
Reasons an Auto Insurer May Drop You in Indiana
First of all, it’s important to understand the difference between a cancellation and a non-renewal of an auto insurance policy. A cancellation means you are being dropped before the end of the policy payment. This usually only happens when you fail to pay your premium or it is discovered that you misrepresented the facts on your initial application. In most situations, policies are left untouched until the end of the policy period and then they are not renewed. Insurance companies refuse to renew policies for the following reasons:
- Bad driving record. If you rack up traffic violations, your insurer may decide you are too great a risk and deny your policy renewal.
- DUI conviction. Even on a first offense, insurance companies consider DUIs to be a major risk.
- Delinquent premium payments. If you frequently made policy payments late, you may be denied renewal. If you don’t pay at all, your policy could be cancelled.
- Fraudulent claims. Often grounds for cancellation, making fraudulent claims is definitely a reason for non-renewal of your policy.
- Too many at-fault claims. If you were found to be at fault for more than two accidents in a three-year period, you will likely be dropped as being too much of a risk.
- Too many claims. Even if you were not found to be at fault, if you file multiple claims for property damage or medical payments in a policy period, your policy will be considered for non-renewal. It’s hard to say how many is too many, but you should make every attempt to avoid filing a claim.
Insurance companies don’t really care if you are just a victim of repeated bad luck. They are in the business of making money, not showing sympathy. Even if the accidents are not your fault, if you are involved in them frequently and make claims, you will be considered too risky to cover. Consider not filing a claim if you are in a minor accident and you can afford the repair to your car. This could protect you if you later need to file a large claim for a serious accident.
When to Call Keller & Keller
Generally, you do not need an attorney if you are filing a claim with your own insurer. However, if you were injured in a crash that was someone else’s fault, you should call our Indiana car accident law firm to find out how we can help you obtain fair compensation for your injuries. Contact us through the link on this page and we will be in touch shortly.