Automotive Insurance Policy Cancellation Texas TX
Reader’s Question:
Is it possible for an automotive insurance company to cancel my policy if I get ticketed for overspeeding here in Texas?
Billy
Arlington, TX
An auto insurance company will normally look at your driving record to check on any traffic violations or road accidents that you have engaged in. They use this to assess your risk level and to decide whether you should be issued with an auto insurance policy or not.
Typically, auto insurance companies in Texas have the option of cancelling your policy within sixty days upon your initial purchase. The reason for the cancellation may depend on different factors, such as a speeding ticket. However, after the sixty-day period, the auto insurance company cannot cancel your policy anymore especially if it is just based on a speeding ticket.
Often, a speeding ticket and any other violations (including driving under the influence or while intoxicated) will lead to a considerable increase in your auto insurance policy rate when you apply for a renewal. The increase in your policy rate is based on the assumption that you are considered as a potential high risk driver that you are expected to cause more damages in the future.
Then again, you may still face a decline in your request for policy renewal, especially if your driving record shows multiple traffic violations and grave convictions. But there are cases wherein abrupt cancellation is done. This normally happens when you miss paying your premium or if you are found guilty of committing an insurance fraud.
Tags: auto insurance policy, Car Insurance Company, car insurance rate, high risk insurance, traffic violation