Before an insurance company can cancel or decide not to renew your auto insurance policy that you bought through an independent agent in Coppell, Texas, they must provide a valid reason and proper notice. The Texas Department of Insurance has a Consumer’s Bill of Rights that helps protect you against unreasonable practices by your car insurance provider.
Under Texas law, once your initial auto insurance policy has been in effect for 60 days, your policy can not be canceled by your carrier without a legitimate reason. Legitimate reasons include such things as not paying your premium when it is due, filing a fraudulent claim or having your registration and/or driver’s license suspended or revoked. Your car insurance can not be canceled just because you had an accident.
While your insurer has certain restriction for when they can cancel a policy, you are free to cancel your policy at any time and for any reason. You are entitled to a refund of any excessive premium you paid. Your insurer can not keep the money that was intended to pay for coverage for the whole year, once you no longer have that coverage.
It is illegal for an insurance company to cancel your policy without mailing you written notice of their intentions at least 10 days prior to the date of cancelation. If your insurance carrier decides not to renew your coverage or reduce your coverage when your renewal date comes up, they must give you at least 30 days notice, or you can force them to renew your coverage if you so choose. If you are denied coverage, you also have the right to ask for a written explanation of exactly why your carrier took such action.
No one likes to open up the mail and find a letter saying that their insurance is going to be canceled. If it should happen to you, don’t panic. Give us a call and an independent agent can help you find a new company to provide you with the auto insurance you need before you lose coverage on your current policy.
