Non-renewal of Auto Insurance and cancellation
Although these terms sound comparable, their meanings are distinct. Let us discuss each to get a greater understanding.
What Is The Cancellation Of Car Insurance?
Cancellation of auto insurance refers to the termination of coverage before the conclusion of the policy period. Either the insurer or the insured can instigate the termination. Nevertheless, it is typically initiated by the insured for preferential purposes. Insurers, like Bajaj Allianz car insurance, have specific reasons for cancelling auto insurance policies.
What Does It Mean When Auto Insurance Is Not Renewed?
Non-renewal of auto insurance occurs when the insurer or the insured doesn’t renew the policy after its term expires. In this instance, the insured is not required to provide a reason for not continuing auto insurance coverage. However, an insurer must provide notice before the policy ends and give a valid reason for doing so.
Reasons An Insurer May Terminate A Car Insurance Policy
These are typical causes for an insurer to cancel auto insurance coverage:
- Deceptive Assertions
An insurer may revoke auto insurance coverage, like Bajaj Allianz motor insurance, if the insured has filed a fraudulent claim. A fraudulent claim may involve staging an accident or submitting false information for a claim settlement.
- Suspended Vehicle Registration
If a policyholder’s vehicle registration has been suspended, an insurer may terminate the policy. Indulging in unlawful activities, such as travelling under the influence of intoxicating substances, can suspend a vehicle’s registration.
- A Record Of Dangerous Driving
This occurs if you have been involved in multiple vehicle accidents within a short period. In such a scenario, your insurer may consider you a high-risk client and cancel your auto insurance.
Auto Insurance Non-Renewal Motives
The following are common causes why you won’t be able to do a Bajaj Allianz motor insurance renewal:
- Too Many Assertions
During the tenure of a policy, if you file multiple claims or are involved in various accidents, an insurer may view you as a high-risk client. Consequently, the insurer may choose not to renew auto insurance for the subsequent cycle.
- Legal Convictions
If you engage in illicit driving practices. However, some insurers may choose not to renew your auto insurance policy once it lapses.
- Cited For Racing
Your insurer may classify you as a high-risk policyholder if you consistently receive multiple speeding citations. As a result, your insurer might not renew your auto insurance for the subsequent cycle.
How Do I Obtain Auto Insurance Following Non-Renewal Or Cancellation?
We recommend purchasing auto insurance online in such a case. This will provide an overview of your auto insurance options. Therefore, you can select a policy unaffected by previous non-renewal or auto insurance cancellation.
Conclusion
The non-renewal and auto insurance cancellation may appear similar but have distinct implications. Cancellation of car insurance refers to terminating a policy before its expiration. Whereas non-renewal of auto insurance is when a policy is not renewed after expiration. Also, if either occurs, you should purchase a new Bajaj motor insurance policy immediately to avoid complications.
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