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Written bySarah Archambault
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Sarah Archambault is a personal finance writer and editor who has been a contributor for Compare.com since 2023. She’s also created and edited content for Credit Karma, Experian, and Sound Dollar, along with banks, financial institutions, and insurance companies.
Sarah enjoys helping people figure out smarter ways to use their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Edited byMatthew Gross
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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Table of contents
Most states require drivers to have auto insurance. That said, insurers can cancel your coverage in certain situations. You’ll need to find new insurance immediately when your insurance gets canceled.
Your insurance company may reinstate your coverage if it canceled your policy for something minor, like missing a payment. But if your insurer drops you for being a high-risk driver, finding new coverage can be difficult — and costly.
Here’s what you need to know if your insurer cancels your auto policy.
What to Do If Your Car Insurance Company Cancels Your Policy)
If your insurance company cancels your policy, you need to get new insurance immediately to avoid a lapse in coverage. Depending on the reason for cancellation, you might be able to work with your insurer to reinstate your coverage. But if that’s not possible, you’ll need to switch insurers.
Follow these five steps if your car insurance company cancels your policy.
1. Understand why your policy was canceled
Insurers cancel auto policies for many reasons, including missed payments and multiple accident claims. They can also cancel for serious offenses like a DUI, revoked or suspended driver’s license, or fraud. Understanding why your insurer canceled your policy can help you figure out how to get coverage again.
If you lost coverage due to a DUI conviction, you may need to find an insurer that covers high-risk drivers. If you’re unsure why your insurance company canceled your coverage, ask your agent or talk to your insurer directly.
2. Ask your insurer if it’ll reinstate your policy
Your insurer may reinstate your coverage if it canceled your policy for something relatively minor. Non-payment often results in cancellation, especially if you’ve missed multiple payments. But if your insurer has a grace period, it might reinstate your policy after you catch up on payments.
Your insurance company’s decision to reinstate your policy may be subject to certain conditions or higher rates. For example, it might enforce a waiting period or need proof that you completed specific requirements, like a driver safety course.
3. Find a new insurance company
If your insurer decides not to reinstate your policy, you’ll need to get new insurance as soon as possible to avoid a lapse in coverage.
If your insurance company cancels your policy for something serious like a DUI, a traditional insurer will likely deny coverage for the same reason. But you may be able to get coverage from a non-standard insurer that caters to high-risk drivers. Your new coverage will likely be more expensive than your old policy, but shopping around can help you find the best rates.
Consider “non-standard” insurance companies
High-risk drivers who don’t qualify for traditional car insurance policies can apply for non-standard insurance. Some large insurance companies offer non-standard coverage, like Progressive, GEICO, The General, and State Farm. If you’re too high-risk to qualify for non-standard coverage, you may qualify for your state’s assigned-risk program.
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Reasons Your Car Insurance Company Might Cancel Your Policy
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If your policy has been active for more than 60 days, insurers can only cancel it for the following reasons:
Failure to pay your premium: To avoid cancellation, pay your policy in full or make monthly payments on time. Check your policy documents for information about late charges and reinstatement grace periods.
Fraud or serious misrepresentations on your application: Fraud includes identity theft and lying about how you use your vehicle, like not disclosing using it for business purposes. Your insurer also might cancel your policy if you lie about where you park the vehicle.
Suspended or revoked license: Your insurer might have a waiting period or require proof you’ve completed specific requirements like traffic school to reinstate your policy after a suspended or revoked license.
Serious driving history issues: Insurers view drivers with major offenses like DUIs and numerous at-fault claims as high-risk. Your insurer can cancel your coverage, and other traditional insurers usually deny coverage for the same issues.
Cancellation vs. non-renewal
Auto insurance cancellation is different from non-renewal of your policy. Cancellation happens while your policy is still active, and you may not receive notice. Insurers typically cancel policies for non-payment, excessive claims, and high-risk driving habits.
Non-renewal occurs at the end of a policy term. Common reasons for non-renewal include multiple accidents, excessive claims, or your insurer no longer serving your area. You’ll get notice of non-renewal before your policy term ends. Timelines vary by state, so shop for a new insurance plan as soon as you learn about the non-renewal.
FAQs About Getting Auto Insurance After Your Policy Is Canceled
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Most states require car insurance, so you’ll need to find new coverage if your insurance company cancels your policy. Here are the answers to some common questions about policy cancellation.
Can your car insurance company drop you?
Yes. Your car insurance company can drop you for various reasons, like non-payment, serious traffic violations, and fraud.
Can you get your car insurance back if it’s canceled?
It depends. If your insurer canceled your policy for non-payment, it might reinstate your coverage if you make up the missing payments. But you’ll likely need to find new coverage if your insurer canceled your policy for a serious violation, like a DUI.
How long does a canceled insurance policy stay on record?
A canceled insurance policy usually stays on your record for around five years. A cancellation on your record sometimes makes it challenging to qualify for a new insurance policy, and you may pay higher rates.
Is it hard to get car insurance after your policy is canceled?
Typically, yes. If you lose your car insurance due to high-risk driving habits or committing a serious traffic offense, it’s often difficult to get standard insurance. You may need to purchase a non-standard policy or join your state’s assigned risk pool.
Sources
Insurance Information Institute, “Is it legal to drive without insurance?,” accessed January 17, 2025.
Insurance Information Institute, “What’s the difference between auto policy cancellation and nonrenewal?,” accessed January 17, 2025.
Insurance Information Institute, “What if I can’t find auto coverage?,” accessed January 17, 2025.
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Sarah ArchambaultPersonal Finance Writer
Sarah Archambault is a personal finance writer and editor who has been a contributor for Compare.com since 2023. She’s also created and edited content for Credit Karma, Experian, and Sound Dollar, along with banks, financial institutions, and insurance companies.
Sarah enjoys helping people figure out smarter ways to use their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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