While it is not a daily occurrence, we may frequently recognize someone acting careless behind the wheel
only because they are insured by car insurance coverage. What most individuals fail to grasp is that
insurance policies are not everlasting. If you are being reckless and careless towards your insured
possessions, the providers may not approve your accidental claims, or possibly terminate the policy.
Similarly, there are various more reasons why a provider may reject your vehicle insurance claim. While it’s
not a very typical item that you will come across every other day, your coverage might definitely be
revoked even after an accident. Let’s talk about auto insurance cancelled after accidents and what can you do in such a circumstance.
Is Your Provider Really Able to Terminate the Coverage?
Since this specific incident looks implausible, many might doubt the veracity of insurance coverage being
terminated. Unfortunately, insurance companies might actually terminate your auto insurance coverage
after an accident. At the same time, it should be highlighted that this does not apply to every traffic collision ever.
There are particular conditions in which this action may come to play. Cancellation of your auto insurance
plan is only probable if the accident has been caused by you, causes severe damage, and has even
resulted in your license being revoked. In summary, ‘car insurance terminated after accident’ is a statement for severe cases only.
Is It Legal for Your Provider to Terminate Your Coverage?
Now comes the subject of legality. Many consumers may worry if insurance companies are even
permitted to discontinue coverage. A significant issue behind such a query is that the processes of your
vehicle insurance coverage are heavily reliant on the underwriting of the plan. Underwriting is the
process through which your providers evaluate the degree of risk you carry for the provider as a client.
The underwriting process covers the assessment of the inclusions, exclusions, premium rates, and
conditions of a specific insurance plan for an individual. If the underwriting of your plan allows the
provider a right to terminate vehicle insurance once specific conditions have been satisfied, they may lawfully cancel your car insurance plan.
What Else Could Be Canceled Regarding Coverage?
Comprehensive automobile insurance coverage may be separated into two fundamental sections – third
party liability and own damage protection. As third party liability coverage is obligatory for every vehicle in the UAE, insurers may only cancel the own damage protection of a policyholder.
Additionally, own damage cover is the spot where an insurance provider truly takes a blow. If the
policyholder is habitually careless with their driving and fails to maintain the maintenance of their vehicle,
they will keep filing claims against the own damage insurance of their plan. This is another reason why
insurance firms in the UAE are authorized to revoke certain coverages if required.
When After an Accident Can Providers Cancel Your Insurance?
Cancelling an auto insurance plan comes with quite a few circumstances and considerations, as a provider
will not take an extreme choice like this one on a fluke. Car insurance is revoked after accidents only
when specific requirements have been satisfied. Given below is a broad overview of the same:
- If the policyholder has been making unintentional claims continually for a long period (the observation length is normally set at 3 years.
- If the policyholder causes an accident due to reckless driving that results in substantial damages to the own vehicle as well as the third-party vehicle
- If the policyholder was hurt in an accident that leads to the suspension of their driver’s license
- If the policyholder has a history of committing other major infractions of the rules of the road
What is Car Insurance Non-Renewal? What Makes It Distinct From Cancellation?
Non-renewal of a vehicle insurance plan is when the provider chooses to cease the business with you
after finishing the full period of your plan. Non-renewals are done only after a notice has been provided
to the policyholder in advance, since this provides them the chance to move to another provider and
acquire a new vehicle insurance plan. The warning may be issued a maximum of 30 days in advance.
You should know that the cause for the non-renewal of a vehicle insurance plan does not have to be as
serious as cancellation grounds. If the insurance providers consider that you have become a high-risk client from them, they might opt to not continue business with you.
Several things may occur before even non-renewal or cancellation. For instance, in case of major damage causing incidents when you are at fault but not owing to reckless driving or general negligence, the
insurance company may simply raise the rate next term onwards. More similar occurrences, like traffic
offenses, when repeated over time, may result in increased premiums or non-renewal of the plan.
How Can Car Insurance Be Cancelled?
Numerous additional factors, besides driving recklessly and breaking traffic laws repeatedly, might cause
your auto insurance to be cancelled. There are a few easy measures you may take to prevent premium
increases, non-renewals, or plan cancellations. Here are a few of these pointers and advice for you to have in mind:
- Always consider and study the case numerous times before you go ahead and make a claim. If the losses
- are minimal enough for you to manage on your own, consider doing so instead of submitting a claim. Save your claims for more serious losses.
- Be responsibly both on and off the road. In addition to driving safely, ensure that you take proper care of
- your automobile. If you appear to be an irresponsible vehicle owner with a vehicles in terrible condition, the provider may raise the premium amount.
- Do not delay premium payments of your plan. Always make payment on time and renew your plan before the grace period finishes.
- Keep everything on the table when chatting with your insurance provider. Hiding facts and data can only
- produce bad repercussions for you. Ensure that you always share the complete story and keep things transparent.
- Read, understand, and remember the underwriting of your vehicle insurance plan. These are the rules by
- which your provider will play and determine the destiny of your coverage.