Why Was My NY Auto Insurance Canceled?

When drivers purchase auto insurance, they feel like they are in the driver’s seat. They took the steps to shop out their insurance, select an insurance company, and sign up for the policy. Few people expect their auto insurance carrier to drop them, but it can and does happen on occasion. “For any new personal automobile insurance policy, an insurer may cancel for any reason within the first 60 days subject to the insurer’s established underwriting guidelines which are not required to be filed with the Department of Financial Services,” according to the Department of Financial Services.

In addition to the above, an insurance company maintains the right to cancel a policy mid-term, but only after the policy is at least 60-days-old for the following reasons:

• Driver license suspension of anyone named on the policy.
• Driver license revocation of anyone named on the policy.
• Discovery that the policyholder used fraud to obtain the policy.
• Discovery that the policyholder made a fraudulent claim.

Having Trouble Getting Coverage?

Are you having trouble getting coverage because you have a DWI on your record, a serious car crash, or too many moving violations? If you’re shopping for insurance in New York and one or two agents or brokers said they can’t cover you, it doesn’t mean you can’t find auto insurance. “No single insurance agent or broker will have contractual relations with all auto insurers doing business in New York,” says the Department of Financial Services.

If you still run into trouble, you’ll want to consider the New York Automobile Insurance Plan (NYAIP), also known as the “Assigned Risk Plan.” This is a special type of insurance designed for drivers that are hard to insure. Most licensed agents and brokers have been certified to sell this kind of insurance.

Next: Is New York a No-Fault Insurance State?

Contact our firm to schedule a consultation with a Long Island car accident attorney.