When Can My Auto Insurance Company Cancel My Policy?
Reader’s Question:
My girlfriend just purchased auto insurance for her new car. I don’t have a car and obviously neither do I have car insurance. We are just wondering on how car insurance stuff works here in West Allis, Wisconsin. Can her car insurance company just cancel her policy anytime they want? Or is there such thing as grace period before auto insurance policy can be cancelled by the insurance company itself?
Orion
West Allis, WI
Hello there Orion!
I’ve checked with Wisconsin Office of the Commissioner of Insurance (OCI) about your question and I learned that car insurance companies can cancel their policyholder’s auto insurance policy provided that said coverage has been in effect within the 60 days. If an insurer chose to cancel the policy within the mentioned period then they are not required to give out explanation about the cancellation. Other reasons wherein a policy can be cancelled is when a policyholder failed to make a payment for the premium on the due date, fraudulent activities done by the policyholder himself/herself when availing of the policy or when making the claim, or major changes on the characteristics of the insurer.
However, for a car insurance policy to be cancelled, insurer is required to notify through writing the policyholder not less than 10 days before the effective date of cancellation or else said cancellation will not be processed.
If you have any questions about car insurance termination you can ask your car insurance agent in West Allis, Wisconsin or even the Wisconsin OCI.
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