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Mistakes You Can Make As A Customer That Can Cause Your Insurance Policy To Be Cancelled

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Auto insurance may be a mandatory thing in most places, but this one service that highly relies on trust and faith between you and your insurance carrier. Insurance providers have guidelines in place which mean that they have to ensure that you are a reliable and trustworthy customer, because otherwise, you could be deemed too big of a risk for them to provide coverage for. Even though insurance policies on your vehicles can be cancelled for several reasons, there are a few common mistakes customers tend to make with their policy the most often. Here is a closer look at mistakes you can make as an auto insurance customer which could leave you with a cancelled policy. 

Mistake: Not letting your insurer know that you have moved. 

Why? Where you live weighs heavily on your overall premium costs for a few different reasons:

  • this affects how far you normally commute on a daily basis
  • this affects how safe your vehicle is according to local demographics
  • this could affect if the insurance provider offers coverage in the area at all

If your insurance company finds out that you have changed where you keep your vehicle because you are living in a new home or have moved in with someone else, they could cancel your policy. 

Mistake: Not being open about who drives your vehicles. 

Why? The insurance rate that is quoted to you relies heavily on the individuals you have listed as drivers and their previous driving and insurance history. If you don't tell the insurance company that someone new is driving your vehicle and this person is in an accident, your policy could in turn be cancelled, and the insurance company may even have reason to not pay for damages that would normally be covered. Even if you occasionally allow someone behind the wheel of your car, it is best to list them on your policy. 

Mistake: Drinking and driving and getting charged with a DUI. 

Why? This is a logical mistake to avoid, but it is not uncommon for unwitting drivers to have one too many glasses of wine or beers with their pals and then get charged with a DUI. While not all insurance providers will drop you because of one DUI, some do. To avoid the risk of being dropped as a customer, be up front about the charges and forthcoming about what happened instead of waiting for the insurance company to find out on their own what happened.