Cancellation Policy

Car insurance companies can’t go around canceling their customers’ policies for no reason in the middle of the policy period. State laws dictate when they can cancel coverage. These reasons typically involve problems with the customer, including:

  • Lack of payment
  • Revocation or suspension of a driver’s license
  • Lack of vehicle registration
  • Fraud, such as lying or unintentionally giving incorrect information on the insurance application about things that would have affected the policy price
  • Making a fraudulent claim

Here’s a look at auto insurance cancellation laws in the 12 most populous states.